Turkey Wake-up call: Macro, Political and Equity News, 8th March

BIST inched up 0.33% yesterday as the strength in a number of blue-chip non-financials kept the broader market afloat thanks to the rebound in the afternoon hours. Banks lost 0.98% on average as they reversed their outperformance from Friday. KRDMD, EREGL, MGROS, ENKAI, EKGYO, NTHOL, ISMDR, and MAVI topped the gainers for the day while power generation companies, PGSUS, DEVA, ALARK, TAVHL, INDES, and VESBE were among the weakest names in the BIST100 universe. Today, our local macro agenda is quiet, apart from the Treasury's reissues of 11-month zero-coupon bills and 2-year fixed-rate bonds in its double domestic borrowing auctions ahead of this week's TL3.32bn domestic redemption while we note there had been some TL18.65bn in cumulative redemptions during last week when no auctions had been held. BIST is off to a negative open as the sentiment in global markets is pretty sour on energy supply concerns amid the Ukraine-Russia war. U.S. futures are down almost 0.7% this morning on top of the 1.4-2.0% overnight losses in main indices after we left and Asian bourses are all trading in the red. Lira is weaker with the USDTRY pair testing the 14.45 mark vs 14.3376 at yesterday's BIST closing bell.