Turkey Wake up call: Macro, Political and Equity News, 23rd June

BIST added 1.39% yesterday in a move spearheaded by the banks for the second day in a row. After an uptick start and some initial wobble, BIST100 climbed to 115k levels and managed to stay around there for the rest of the day. Banks outperformed with a 2.74% average gain with HALKB, ISCTR, and AKBNK taking the lead. ENKAI, GUBRF, BIZIM, EKGYO, SISE, TOASO, AYGAZ, TRKCM, and Koza Group names topped the non-bank gainers while TCELL, ASELS, AKGRT, ALKIM, LOGO, TATGD, and AKSEN were among the rare decliners for the day. Today, our macro agenda is muted apart from Treasury reissue of 3-year fixed-coupon bonds and issue of 5-year CPI-linkers in double domestic auctions, wrapping up this month's relatively lighter borrowing programme. Domestic redemption is TL0.44bn for the week while the total for the month stands at TL12.39bn vs a domestic borrowing target of TL27.0bn while Treasury has raised TL15.24bn in the five auctions/placements held so far. BIST is off to a slight positive open given the continued upbeat mood abroad. U.S. futures are up 0.1% in early trades on top of the 0.7-0.8% overnight gains after the hour we left and Asian indices are almost all trading in the green after Trump's remarks that the U.S.-China trade deal remained fully intact.