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

BIST100 climbed 1.06% yesterday to close at its 8-month high as the depressed banking stocks spearheaded the market for the second consecutive day. After an uptick start that marked the lowest point of the day, BIST100 index gradually climbed to 1,202 and then onto 1,209 level with some limited profit taking in the last 30 minutes. Banking index jumped 4.41%. TCELL, SAHOL, OTKAR, EGEEN, DEVA, YATAS, GOODY, and ALKIM topped the non-bank gainers while PETKM, TUPRS, energy stocks, CCOLA, MGROS, and IPEKE were among the weakest names. Today, our local macro agenda is muted apart from the Treasury's reissues of 2-year fixed-coupon bonds and 7-year FRNs in double domestic borrowing auctions, wrapping up this month's heavy borrowing programme. Domestic redemption is TL5.53bn for the week while the total for the month stands at TL43.70bn vs a domestic borrowing target of TL20.0bn while Treasury has raised TL7.11bn in the two auctions/placements held so far. BIST seems headed for a flattish start with a negative bias given the 1.4-1.5% overnight losses in American markets after the hour we left. Lira is stable around the 7.89 mark vs the dollar. U.S. futures are up 0.3% in early trades while Asian markets present a mixed picture.