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

BIST eked out a 0.04% gain after rebounding quickly from its morning slump and extended its winning streak to the fourth day, shrugging off the weakness in lira. Banks slightly outperformed with the 0.31% gain for their index as VAKBN and GARAN took the lead. ASELS, KOZAL, EKGYO, TRGYO, LOGO, and DEVA topped the non-bank gainers while KCHOL, OTKAR, TAVHL, THYAO, MPARK, and CIMSA were some of the weaker names. Today, our local macro agenda involves TurkStat's residential sales data for September’21 due at 10AM local time. Home sales had dropped 17.0% YoY to 141k units in August amid a 64.0% plunge in mortgage-backed transactions due to the strong base effect from last summer's mortgage-driven surge in sales on the back of historically-low lending rates and advantageous loan terms. August data had carried the cumulative YtD sales to 802k units, down 21.7% from a year ago, mainly due to the 67.9% drop in mortgage-backed sales. We anticipate a slight negative for the BIST given similar moves in U.S. futures while Asian bourses present a mixed picture. Lira is flattish as the USDTRY pair is cruising around the 9.04 mark.