Turkey Wake-up call: Macro, Political and Equity News, 22nd June

BIST climbed 0.54% yesterday as the late-afternoon rebound helped the market snap its five-day losing streak. The move coincided with the recovery in global bourses while the Lira failed to join the optimism in equities. Banks gained 0.62% on average, performing in line with the broader market. EKGYO, EREGL, PGSUS, TOASO, SAHOL, ASELS, and HEKTS led the gainers while TUPRS, PETKM, MPARK, YATAS, KRVGD, ISMEN, and SELEC were some of the weaker spots. Today, our local macro agenda involves June'21 Consumer Confidence Index compiled by TurkStat due at 10AM local. In the revised series, the index had dropped 3.6% on a sequential basis to a 9-month low of 77.3 in May. Separately, the Treasury will reissue 5-year TLREF-indexed bonds and 2-year fixed-coupon bonds in double borrowing auctions in the domestic market, wrapping up this month's heavy borrowing programme. Domestic redemption is only TL1.03bn for the week while the total for the month stands at TL31.66bn vs a domestic borrowing target of TL28.0bn while Treasury has already raised TL19.20bn in the seven auctions/placements held so far. BIST is headed for a positive start given the more optimistic sentiment in global markets. U.S. futures are up 0.2% in early trades on top of the c.0.25% overnight gains after the hour we left and Asian markets are almost all trading in the green as they lick their wounds from the recent sell-off.