Turkey Wake-up call: Macro, Political and Equity News, 1st September

BIST climbed 0.95% yesterday as Turkish blue-chips led by banks caught some decent institutional bids, closing the month on an upbeat tone. Benchmark BIST100 index spent the entire day in the positive territory while the bulk of daily gains were pocketed during the final hour of the session. Banks spearheaded the broader market with the 2.58% jump in their sector index amid particular strength in GARAN and YKBNK. TCELL, TUPRS, AEFES, GUBRF, ISMEN, NTHOL, INDES, DOAS, and SELEC topped the non-bank gainers while KCHOL, BIMAS, SISE, PETKM, and ULKER were some of the fewer decliners. Today, our local macro agenda highlight will be the 2Q21 GDP numbers due at 10AM local time. Bloomberg survey puts 2Q21 growth at +21.0% YoY and +1.0% on a seasonality and workday-adjusted basis QoQ. August'21 PMI will also be announced at 10AM. The index had jumped 5.3% on a sequential basis to a 6-month high of 54.0 in July in the second consecutive month of strong recovery, following the loosening of pandemic lockdowns. Lastly, Istanbul Chamber of Commerce will reveal its August'21 inflation numbers for metropolitan Istanbul at noon local time. We anticipate an uptick start for the BIST on the back of the supportive sentiment abroad. S&P futures are up c.0.3% in early trades and Asian bourses are mostly trading in the green.