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

BIST climbed 0.99% on Friday in a move spearheaded by the surge in banks this time. After a positive start around the 113.5k levels, BIST100 further climbed to 114.3k in early trades. Rest of the day saw ups and downs and a close around the opening levels. Banks visibly outperformed with the 3.22% surge in their sector index, driven by the strong gains in HALKB and VAKBN. TCELL, TKFEN, ARCLK, KOZAL, GUBRF, MAVI, and LOGO topped the gainers among non-banks while EKGYO, KRDMD, DOAS, TTKOM, SOKM, VESTL, AKGRT, SISE, and SELEC were some of the day's weak spots. Coming to start of the new week, our local macro agenda involves May'20 Consumer Confidence Index compiled by TurkStat due 10AM local time. The index had jumped 8.4% from the lowest in the series that dates back to 2005 in April to a 6-month high of 59.5 in May. Separately, Ministry of Tourism to disclose the tourist arrival numbers for May'20 at 11AM. Foreign tourist arrivals had plunged 99.3% yoy to 0.02mn in April, bringing the cumulative YtD arrivals to 4.26mn visitors, down 51.2% from the corresponding period of 2019. We foresee a flattish open for the BIST amid mixed signals from key indicators this morning. Lira is a tad stronger with USDTRY at 6.8423 vs 6.8482 at Friday's closing bell. U.S. futures are up 0.4% in partial recovery of their 1.3-1.4% overnight losses after the hour we left on Friday while Asian equity benchmarks present a mixed picture.