Turkey Wake-up call: Macro, Political and Equity News, 6th December

BIST continued its ascent with another 1.61% increase on Friday, carrying its weekly gains to 7.54%. Banks trailed the broader market with the 0.95% gain in their sector index as heavyweight GARAN underperformed. KCHOL, SAHOL, TAVHL, ENKAI, TTKOM, Koza Group stocks, ISDMR, and ODAS topped the non-bank gainers while TUPRS, HEKTS, MAVI, MGROS, SISE, VESTL, and SELEC were some of the rare decliners among BIST100 constituents. Coming to the start of the new week, our local macro agenda involves the Central Bank's November'21 real effective FX rate due at 2:30PM local time. The CPI-based index is expected to decline from the 60.37 mark for previous month given the massive ~38.9% depreciation of lira vs the currency basket dwarfing the 3.51% headline CPI print for November. We anticipate a flattish start for the BIST given mixed signals from global markets and a stable lira (USDTRY cruising around the 13.71 level vs 13.7240 at Friday's closing bell). S&P futures are up almost 0.5% in early trades as they reverse their overnight losses after the hour we left on Friday and Asian bourses are moving in different directions.