Turkey Wake-up call: Macro, Political and Equity News, 13th April

BIST dropped 1.24% yesterday, extending its losing streak to the fifth day in a row. After its early attempts to move higher were quashed, the BIST100 index spent the entire day in negative territory and closed near its intraday bottom. Banks lost 0.98% on average as heavyweight GARAN held up relatively better. Grocery chains, TATGD, DEVA, NTHOL, and TRGYO were some of the rare gainers while KCHOL, SAHOL, TCELL, TTKOM, KOZAL, EKGYO, TOASO, TTRAK, OTKAR, and MAVI topped the decliners. Today, our local macro agenda showcases February'21 Industrial Production numbers due 10AM local time. Bloomberg consensus +8.0% yoy based on the estimates for calendar-adjusted series and +0.0% mom based on the seasonally & calendar-adjusted series. Separately, President Erdogan will chair the cabinet meeting starting at 3PM during which additional measures to limit contact and movement of people to curb the spread of the coronavirus will be evaluated. We anticipate a sideways open with a negative bias given mixed signals from peer markets and a small weakness in lira (USDTRY at 8.16 levels vs 8.1448 at yesterday's closing bell). U.S. futures are down a few points and Asian indices are moving in different directions.