Turkey Wake-up call: Macro, Political and Equity News, 24th January

BIST slipped 0.15% on Friday after spending most of the volatile session in negative territory, carrying its weekly losses to 2.98%. Banks held up somewhat better with the 0.35% daily increase in their sector index amid strength in YKBNK and AKBNK while HALKB was weak as it reversed its gains from Thursday. ENKAI, Koza Group stocks, EKGYO, INDES, DOAS, ISGYO, and TURSG topped the non-ban gainers while aviation stocks, automotive manufacturers, KCHOL, ISMEN, and KORDS were among the weaker spots. Today, our local macro agenda is muted apart from Treasury's reissues of 2-year fixed-rate bonds and 6-year CPI-linkers in its double domestic borrowing auctions. Will hold three more direct sales tomorrow and on Thursday for its TL12.50bn domestic redemption this week while we note another 19.38bn coming due on Monday. We project a sideways open for the BIST considering the mood in peer markets. U.S. futures are up 0.7% in early trades in partial reversal of their 1.0-1.1% overnight losses after when we left on Friday while Asian bourses are mostly trading in the red. Lira is a almost unchanged with USDTRY pair around the 13.45 mark vs 13.4386 at the time of BIST closing bell.