Turkish construction stocks rally on expectations of Syria’s reconstruction

Shares of Turkish construction companies, particularly cement and steel producers, surged as investor optimism grew over their potential to spearhead Syria's reconstruction efforts following the rapid political developments in Syria, including the collapse of Bashar al-Assad's regime.

Oyak Çimento, owned by the Turkish Armed Forces Pension Fund, led the charge with its shares jumping 9.9% on the Istanbul Stock Exchange, closing at 20.92 lira.

Çimsa Cement, majority-owned by Sabancı Holding, saw its shares climb nearly 10%, mirroring gains by steel giant İsdemir and cement manufacturer Limak Doğu Anadolu Çimento, both of which also posted significant increases.

Industry poised for action

Fatih Yücelik, Chairman of the Turkish Cement Manufacturers' Association (Türkçimento), expressed confidence in the sector's readiness to respond to reconstruction demands. “Our industry is well-prepared to adapt to the new realities on the ground,” he stated, emphasizing that Turkish companies are fully capable of supporting Syria’s rebuilding once stability is established.

Reconstruction challenges and opportunities

The scale of Syria’s destruction is staggering. A 2022 World Bank report estimated war-related damages at $11.4 billion, with the bulk of losses concentrated in vital infrastructure, including roads, bridges, and buildings. The rebuilding process is expected to be a monumental task, presenting significant opportunities for Turkish companies to contribute to the region’s recovery.

This rally in Turkish construction stocks underscores investor anticipation that these firms will play a pivotal role in reshaping Syria's future, leveraging their strategic proximity and expertise to aid in the reconstruction of its war-torn cities.