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Dear esteemed partners, employees, customers,
2006 was brought along favorable developments rather than unfavorable ones for Turkish economy. In the year 2006, during which the interest of especially foreign investors for Turkey increased, large amounts of foreign capital entered in the country. Net international direct investment inflow to Turkey in 2006 realized to be approximately 20 billion US Dollars. While the markets, primarily the finance sector, witnessed numerous acquisition and mergers, the exportation amount reached to 85 billion US Dollars by an increase by 17 % relatively to the previous year. Turkey, by now, has become one of the countries, which are capable of setting future targets in terms of introducing itself to international actors and liberation. In 2007, we expect the foreign investors to maintain their dominant perspectives in 2006 and Turkey to be holding one of the leading ranks among developing markets in terms of direct capital and portfolio investments.
In respect of 2007, there are certain outstanding risks and opportunities for the world economies. The basic argument here is, as it was for the fluctuations experienced in 2006, the consequences of the USA and Asia equation. The origins of the current imbalance in the global economy are discussed to be the high savings rates in Asia in spite of the continuously increasing current accounts deficit in USA.
On the other hand, the risks that the developing countries, which, in the past, generally experienced severe crises after intensive investment and growth periods, are confronted decrease. The facts that the developing countries can find debts in their own currencies, they maintain their debts at manageable levels, they can save major foreign exchange reserves, improve their financial systems and render the exchange rates to be at realistic levels are the elements, which reduce the risk factors.
We, being a publicly – held company with a fairly broad sphere of activities, closely keep track with the developments in Turkey while making efforts to access and analyze any piece of information with news nature due to our operations in international markets.
One of the remarkably important events of 2006 in economy was the fluctuation periods experienced in March firstly, and in May and June more violently. The basic argument with the fluctuation was the volatility in interest, goods and commodity rates in line with the concerns for stagnancy in developed countries, primarily in USA.
In parallel to the fluctuation, ISE (Istanbul Stock Exchange) faced the lowest figure of the year, 31.492, in June. While US Dollar marked the highest increase by a variation by 26 % during the fluctuation in June, Gold price, upon the loss in value of Dollar, reached to the highest level in the last 26 years, 730 Dollars, in May.
Gold price faced the highest level ever with 850 Dollars in 1980. While the overnight interest rates increased by 425 base points at once, the internal borrowing interest rates exceeded 23 %, and the inflation rates went double digits again. However, as a favorable development, the share of foreign investors, who kept their trust in our country in spite of the fluctuation in ISE (Istanbul Stock Exchange), maintained the level of 64 – 66 % during the year.
The Goldas stock, which started the year of 2006, when ISE (Istanbul Stock Exchange) exhibited a poor performance relatively to other global exchange markets, at USD 95 mn market price, accomplished to maintain its current level in spite of its lumpy course due to the impacts of the market fluctuations along the year. ISE (Istanbul Stock Exchange) closed the year 2006 at the level of beginning in terms of market value. It is expected that the market capitalization will increase as the foreign investor in our country continues in 2007 as well.
Goldas Kuyumculuk maintained its rapid growth in 2006, too. The turnover of Goldas increased by 37 % relatively to the same period the previous year and reached up to TRY 3.2 billion. According to the consolidated balance sheet data drawn up in compliance with the International Financial Reporting Standards, the growth trend of Goldas accelerated generally in 2006. The net profit for the accounting year 2006 of Goldas, which managed to make a good start of the year, reached up to TRY 8 million upon an increase by 62 % relatively to the year 2005.
The world revolves faster and faster as the time goes. It is seen that the developing countries have learnt from their past experiences and have become more resistant to crises. Turkey has taken important steps on the matter as well; the continuance of the economic reforms will enable Turkey to take a path of sustainable growth toward the state of a high wealth.
Another important factor for Turkey is the requirement to consider such countries as China and India, which exhibit high economic growth performances, as partners, not rivals, and to seek ways to increase our exportation to those countries. 2007 will be witnessing the increasing influence of politics over economy due to the scheduled Presidential election and popular elections.
We sincerely hope that the elections process is concluded in the manner to ensure the maintenance of the political stability in view of contributing to the economic performance and the increase in the interest of foreign investors in our country.
We plan to evaluate 2007, which started with several adverse developments such as the suspension of several chapters of EU accession negotiations and the issue of Cyprus, as we highlight the opportunities brought along.
Our other targets include the strengthening of our financial structure, expending our product portfolio, to open new representation offices in abroad and new stores selling Goldas brand products, and strengthening our dealer network.
We improve our licensed products portfolio and will continue our works in this scope. Besides, our investments in technology and R&D will be maintained in view of strengthening our brand.
I wish all investors and our partners, who have their trust in Goldas, to preserve their faith in the forthcoming period and would like to take this opportunity to thank Goldas employees and customers, with whom we have become what we are now, for their contributions.
Best Regards,
M. Sedat Yalinkaya
CEO
