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

BIST slipped 0.58% yesterday as the 8-day winning streak ended with a small retreat due to profit taking in the afternoon despite continued rally in lira. Index opened on an uptick yesterday and gradually climbed to 1,304 by mid-day. Sellers took control of the market after 2PM, erasing earlier gains and some more until the close. Banks fared slightly better as their sector index inched up 0.11%. SAHOL, KCHOL, TTKOM, TUPRS, PGSUS, KRDMD, DOAS, AKSA, BRISA, MAVI, and YATAS led the non-bank gainers while EREGL, FROTO, TOASO, ARCLK, EGEEN, DEVA, CIMSA, TMSN, ALARK, SOKM, and GOZDE were among the weaker spots during the broad-based slide with decliners outnumbering gainers in the BIST100 space 3-to-1. Today, our local macro agenda involves September'20 Industrial Production numbers due at 10AM local time. Bloomberg consensus +8.2% yoy based on the estimates for calendar-adjusted series and +0.2% mom based on the seasonally & calendar-adjusted series. Separately, CBT's monthly expectations survey will be revealed at 2:30PM. BIST seems headed for a downtick start as the global equities are losing ground on growing concerns about the virus spread. S&P futures are up a few points in partial recovery of the 0.4-0.6% overnight declines after we left and Asian indices are almost all trading in the red. On a positive note, lira is gaining further ground with USDTRY down to 7.63 levels from 7.6930 at yesterday's closing bell.