Turkey Wake up call: Macro, Political and Equity News, 11th August

BIST added 1.41% yesterday as some lira stability after last week's rout lured buyers to depressed Turkish stocks in the afternoon. Index opened lower and touched its intraday low of 1,039 in early trades before starting a recovery. Gradual ascent continued for most of the day apart from a short-lived softening around mid-afternoon. Banks again lagged with a 0.12% increase in their sector index as the strength in ISCTR and VAKBN were washed away by the losses in ISCTR and YKBNK. Retailers, ASELS, MPARK, FROTO, ENJSA, ULKER, and OYAKC topped the non-bank gainers while TUPRS, KCHOL, aviation stocks, Koza Group names, AKGRT, AKSEN, and OTKAR stood out among weakest spots. Today, our local macro agenda is quiet, apart from Treasury's reissues of 2-year fixed-coupon bonds and 5-year CPI linkers in double domestic borrowing auctions. Domestic redemption for the week is a hefty TL23.11bn while the Treasury has already raised TL3.17bn in the auction held yesterday. BIST is headed for a positive start as the upbeat sentiment abroad should support the Turkish equities alike. U.S. futures are up 0.3% in early trades on top of the 0.6-0.7% overnight gains after the hour we left and Asian indices are all trading in the green. Lira is a bit weaker though, with USDTRY at 7.3254 vs 7.3045 at yesterday's closing bell.