Turkey Wake-up call: Macro, Political and Equity News, 15th June

BIST slipped 0.05% yesterday in its third consecutive day of losses as limited gains in morning hours could not be sustained as the day unfolded. Banks were weaker with the 2.00% decline in their sector index amid particular pressure on recent outperformers ISCTR and TSKB. ENKAI, DOAS, MGROS, BIMAS, AKSEN, CIMSA, VESBE, and Koza Group names topped the non-bank gainers while EREGL, KARSN, NTHOL, ECILC, GUBRF, and REITs were among the weaker spots in the BIST100 universe. Today, our local macro agenda involves the residential sales data for May’22 at 10AM local time. Home sales had climbed 38.8% yoy to 133k units in April on the back of 82.9% surge in mortgage-backed transactions as consumers sought wealth protection in real estate amid currency volatility. April data had carried the cumulative YtD sales to 453k units, up 26.2% from a year ago, again mainly driven by the 55.1% jump in mortgage-backed sales from a low base. Separately, May'22 central government budget numbers are due at 11AM local. On the political front, President Erdogan will address his party group meeting in the Parliament starting at 12PM local time. We foresee a flattish start for the BIST this morning given mixed signals from global peers. S&P futures are up 0.4% in early trades as they reverse the overnight declines after the hour we closed and Asian bourses are moving in different directions.