Turkey Wake-up call: Macro, Political and Equity News, 12th April

BIST climbed another 2.33% yesterday after another day totally spent in positive territory. Banks visibly outperformed the headline index for the third consecutive day with the 5.93% jump in their sector index. SAHOL, DOHOL, EKGYO, TRGYO, PGSUS, TTKOM, KORDS, BRISA, SOKM, and TKFEN led the long list of non-bank gainers while ENJSA, ALARK, ODAS, HEKTS, DOAS, FROTO, and AKSEN stood out among rare decliners in the BIST100 universe. Today, our local macro agenda involves February'22 Industrial Production numbers due 10AM local time today. Bloomberg consensus +7.5% yoy based on the estimates for calendar-adjusted series and +2.7% mom based on the seasonally & calendar-adjusted series. Separately, Treasury will issue 10-month zero-coupon bills and 6-year FRNs in its double domestic borrowing auctions today ahead of this week's TL3.12bn domestic redemption while we note there had been some TL2.68bn in redemptions during last week when no auctions had been held. On the political front, President Erdogan will chair the cabinet meeting starting at 4PM local time and he is expected to make a public statement afterwards. BIST seems off to a downtick start given the sour sentiment in global markets amid rising U.S. Treasury yields while we have to underline the Turkish stocks' recent decoupling from international peers. U.S. futures are down c0.4% in early trades on top of the 0.6-0.7% overnight losses after we left and Asian bourses are mostly trading in the red.