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

BIST eked out a 0.13% gain yesterday despite the profit-taking in key banking stocks. After a positive open, BIST100 gradually climbed to 116.2k levels around mid-day, followed by the fizzling out of gains in the last half hour of the session. Index briefly slipped to negative territory late in the day, but managed to hop above the neutral line by the close. Banks fell behind with the 0.96% loss in their sector index amid pressure on recent outperformers HALKB and VAKBN. ENKAI, GUBRF, MAVI, ULKER, and ALKIM were among the weakest non-banks while TTKOM, TCELL, TOASO, OTKAR, ENJSA, KRDMD, and Sisecam stocks stood out as top gainers. Today, our local macro agenda is muted apart from June'20 Manufacturing capacity utilisation Rate due at 10AM local time while we predict a slight negative open for the BIST given the similar outlook for European majors and MSCI's warning on potential reclassification of Turkey's stock market status to Frontier Markets from Emerging Markets. U.S. futures are up a few points in partial recovery of their small 0.2-0.3% overnight declines while Asian equity markets present a mixed picture.