Turkey Wake-up call: Macro, Political and Equity News, 24th May
BIST added 0.36% yesterday as the pressure on GARAN due to its MSCI exit & FTSE downweight seemed to weigh on the broader market. After a strong start in sync with global peers, BIST100 index slipped to negative territory after 2PM and was only pushed back to black thanks to some closing buy orders. Banking index was down 0.57% for the day amid weakness in GARAN and HALKB while others performed visibly better. KCHOL, TCELL, FROTO, DOAS, ASELS, HEKTS, AKSA, OTKAR, and ALARK led the non-bank gainers while Koza Group names, EKGYO, ALKIM, AEFES, AKSEN, GSDHO, and GUBRF stood out among the weaker spots. Today, our local macro agenda is muted, apart from the Treasury's reissues of 9-month discount bills and 10-year CPI-linkers in double domestic borrowing auctions to wrap up this month's heavy borrowing programme. Domestic redemption is TL4.79bn for the week while the total for the month stands at TL52.95bn vs a domestic borrowing target of TL59bn while Treasury has already raised TL47bn in the seven auctions/placements held so far. We anticipate a slight positive start for the BIST while lack of a decision after yesterday's cabinet meeting on the anticipated CPI-linked local bond offering may provide some cushion for Turkish stocks. In the same vein, Lira is reversing yesterday's gains and some more with the USDTRY hovering around the 15.98 mark vs 15.7585 at yesterday's closing bell. U.S. futures are down 1.2% in early trades and Asian bourses are almost all trading in the red.
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