Turkey Wake-up call: Macro, Political and Equity News, 14th February

BIST climbed 0.61% on Friday as the market staged a decent comeback in the afternoon following losses related to Ukraine tensions. Banks increased 0.51% on average with ISCTR and AKBNK leading and GARAN lagging peers. TUPRS, ARCLK, TAVHL, ASELS, FROTO, BIMAS, and TRGYO led the non-bank gainers while EREGL, ISDMR, ARDYZ, GOZDE, ALARK, and KARSN were among the weaker names. Today, President Erdogan will hold talks with Sheikh Mohammed Bin Zayed Al Nahyan in Abu Dhabi as he reciprocates the de facto UAE leader's visit to Ankara in November and the sides are expected to sign a series of accords, including a letter of intent regarding defense industry cooperation along with potential other investments. On the macro front, Treasury will reissue 2-year fixed-rate bonds and 3-year CPI-linkers in double domestic borrowing auctions. Will sell two more papers tomorrow ahead of this week's TL3.21 in redemptions while we note there had been some TL5.72bn in cumulative redemptions during the past two weeks when no auctions had been held. BIST seems headed into a negative start given the sour mood in global markets on continued tensions over potential Russian military incursion into Ukraine. U.S. futures are up a few points in early trades in only a partial recovery of the 1.8-2.2% overnight losses after we left on Friday and Asian stock indices are almost all trading in the red.