Turkey Wake-up call: Macro, Political and Equity News, 21st May

BIST lost 0.67% yesterday after cruising in the negative territory all day long on global market weakness. Benchmark BIST100 tested an intraday bottom of 1,440 around noontime before staging a two-step rebound that helped recover about half of its losses. Banks gained 1.65% on average, outperforming the broader market for the third day in a row. EREGL, KRDMD, OTKAR, DOAS, FROTO, and TTKOM were among the weak spots while THYAO, ENJSA, INDES, CCOLA, AEFES, and KOZAA topped the non-bank gainers. Today, our local macro agenda involves May'21 Consumer Confidence Index compiled by TurkStat due at 10AM local time. In the revised series, the index had plunged 7.5% on a sequential basis from its 31-month peak in March to 80.2 in April. We anticipate a slight positive open for the BIST given the better sentiment in peer markets while lira is almost unchanged since last night. U.S. futures are up c.0.2% in early trades and Asian equity indices are mostly trading in the green.