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

BIST added 1.06% yesterday, extending its winning streak to the fourth day despite the sluggish performance from banks. Benchmark BIST100 opened higher and spent the entire day in positive territory apart from a plunge at 5PM that pushed the market briefly into red, followed by a V-shaped rebound till the close. Banking sector index was up a mere 0.18% amid some weakness in ISCTR, YKBNK, and HALKB. TCELL, ULKER, ARCLK, ENKAI, GUBRF, ODAS, INDES, DOAS, GOZDE, and AGHOL stood out top gainers in the BIST100 space while EREGL, KRDMD, MPARK, TTRAK, NTHOL, and EGEEN were among the fewer weak names. Today, our local macro agenda is quiet, apart from the Treasury's cash budget balance for October'20 to be disclosed at 5:30PM local time. Global markets continue to assess the yet-to-be-announced outcome of U.S. elections and we may see a downtick start in the BIST as the recent rally in equity markets seems to be fizzling out. U.S. futures are down c.0.6% in early trades while Asian indices are moving in different directions. Lira, on the other hand, is gaining some ground with the USDTRY pair around 8.4325 vs 8.46 levels at yesterday's BIST closing.