Turkey Wake-up call: Macro, Political and Equity News, 20th November

BIST climbed another 1.41% yesterday as the Central Bank delivered a policy rate hike matching the heightened market expectations and Turkish stocks led by banks managed to shrug off the weakness in European peers. After a downtick start and awaiting the MPC decision in slight negative territory, benchmark BIST100 turned north as the bulls came back raging after the announcement of the rate decision at 2PM. BIST100 jumped 25 points in a few minutes and moved higher after a short wobble. Banks led the charge with the 4.01% gain in their sector index. KCHOL, SAHOL, TTKOM, KRDMD, PETKM, GUBRF, YATAS, GOODY, and ISMEN topped the non-bank gainers while EREGL, ISMDR, EKGYO, DOAS, CCOLA, and foodstuff producers were among the fewer decliners for the day. Coming to the last trading day of the week, our local macro agenda involves October'20 Consumer Confidence Index compiled by TurkStat due at 10AM local. No consensus available. In the revised series, the index had inched down 0.1% on a sequential basis to 81.9 in October. We foresee a downtick open for the BIST given the less supportive mood abroad and a slight retreat in lira (USDTRY around 7.57 mark vs 7.53 at yesterday's closing bell). U.S. futures are down 0.5% while Asian markets present a mixed bag.