Turkey Wake-up call: Macro, Political and Equity News, 04th November

BIST climbed 0.91% yesterday after a pretty volatile day, resuming its recent uptrend after a one-day breather. The index took a 46-point plunge around mid-day and staged a sharp rebound, leaving the traders scratching their heads while searching for explanations. Last hour of the session saw further momentum that led to a close at daily peak. Banks gained 2.29% on average on continued institutional buying with particular strength in second-tier names and outperformed the broader market for the 5th consecutive day. TTKOM, FROTO, KCHOL, SAHOL, PGSUS, CCOLA, and GOZDE outshined their non-bank peers while EREGL, KRDMD, PETKM, EKGYO, AKSA, CIMSA, KOZAA, and TTRAK stood out among the weak spots in the BIST100 space. Coming to this morning, our local macro agenda involves the Central Bank's October'21 real effective FX rate due at 2:30PM local time. The CPI-based index is expected to decline from the 63.09 mark for previous month given ~7.9% depreciation of lira vs the currency basket dwarfing the 2.39% headline CPI print for October. We foresee a positive start for the BIST given prevailing upbeat sentiment abroad following last night's FOMC statements.