Turkey Wake-up call: Macro, Political and Equity News, 16th August

BIST retreated 0.25% yesterday in profit-taking in late afternoon trading and despite the strength in banks that gained 1.50% on average. GARAN, AKBNK, THYAO, PGSUS, TKFEN, ALARK, OYAKC, TKNSA, and ODAS led the gainers in the BIST100 universe while TCELL, SISE, TUPRS, FROTO, BIMAS, DOHOL, DEVA, AKSA, and Koza Group stocks were among the weaker spots. Today, our local macro agenda involves the residential sales data for July22 due at 10AM local time. Home sales had increased 11.7% yoy to 151k units in June in a mild advance as base effects seemed to kick in after previous month's triple-digit yearly jump. Separately, Treasury will issue 10-year CPI-linkers and separately sell 10-year sukuk papers via direct placement in double domestic borrowing actions today, wrapping up this month's heavy borrowing programme. Domestic redemption is TL19.05bn for the week while the total for the month stands at TL80.91bn vs a domestic borrowing target of TL69.2bn while Treasury has already raised TL73.51bn in the five auctions/placements held so far. BIST seems off to an uptick start given supportive 2Q22 earnings releases. U.S. futures are trading marginally lower in early trades but we note the 0.5-0.6% overnight gains after the hour we left while Asian bourses present a mixed picture.