Turkey Wake up call: Macro, Political and Equity News, 9th June

BIST retreated 0.35% yesterday, ending its record-high 13-day winning streak with a small loss. The day started on a positive tone and the index climbed further to 110.5-111.1k range where it spent the bulk of the session. But some profit taking in the last hour erased earlier gains and pushed the benchmark to a slight negative close. Banks dropped 0.34% on average, in sync with the broader market. BIMAS, SISE, MPARK, TOASO, HEKTS, and Koza Group names were among the weakest non-financials while EKGYO, BIZIM, TTRAK, GUBRF, FROTO, ARCLK, and ULKER topped the gainers. Coming to this morning, our local macro agenda is muted apart from Treasury's reissues of 7-year FRNs and 12-month discount bonds in its double domestic borrowing auctions. Domestic redemption is TL10.71bn for the week while the Treasury has already raised TL3.22bn in the single auction held yesterday. We anticipate a slight positive open for the BIST given the 0.8% overnight gains in U.S. indices after the hour we left. U.S. futures are down a few points in early trades while Asian markets outside of Japan are mostly trading in the green.