Turkey Wake-up call: Macro, Political and Equity News, 21st September

BIST lost 1.94% as the sell-off in global markets haunted Turkish stocks alike. After a downtick open, BIST100 index quickly fell to 1,400 and then further down to 1,390 in the afternoon. Banks underperformed with the 3.00% loss in their sector index as heavyweights AKBNK and GARAN took the biggest hit. AEFES, THYAO, ASELS, TAVHL, and INDES were some of the rare gainers in the BIST100 space while EREGL, KRDMD, BIMAS, CCOLA, PETKM, AEFES, CCOLA, CIMSA, DOAS, and TURSG topped the long list of decliners. Today, Treasury will reissue 9-month zero-coupon bills, issue 7-year FRNs, and separately offer 5-year sukuk papers via a direct sale in triple domestic borrowing actions, wrapping up this month's heavy borrowing programme. Domestic redemption is TL20.46bn for the week while the total for the month stands at TL35.95bn vs a domestic borrowing target of TL40.0bn while Treasury has already raised TL23.48bn in the five auctions held so far. BIST seems headed for a flattish start with a positive bias as major markets abroad are showing signs of stabilisation after yesterday's rout. Lira is also licking its wounds with the USDTRY pair below the 8.65 mark in early trades vs 8.6728 at yesterday's closing bell.