Turkey Wake-up call: Macro, Political and Equity News, 4th February

BIST dropped 2.21% yesterday as the sell-off in global equity markets weighed on Turkish stocks alike, especially following the ECB statements after 4:30PM. Banks lost 3.67% on average as they reversed Wednesday's gains and some more. ARCLK, OYAKC, ISGYO, and TRGYO were some of the rare gainers in the BIST100 universe while YKBNK, AKBNK, KRDMD, KCHOL, PETKM, Koza Group names, GLYHO, AGHOL, and AKSA topped the decliners. Today, our local macro agenda is muted apart from Central Bank's January'22 real effective FX rate due at 2:30PM local time. The CPI-based index is expected to stage some recovery from its all-time-low of 47.82 for previous month given ~0.6% appreciation of lira vs the currency basket during the month along with the 11.10% headline CPI print for January. We anticipate a slight positive open for the BIST as the sentiment abroad seems to have swung back to optimism this morning. S&P futures are up 1.2% in early trades as they reverse their overnight losses after the time we left and Asian markets are almost all trading in the green. Lira is a tad weaker with the USDTRY pair around the 13.57 mark in early trades vs 13.5465 at yesterday's BIST closing bell.