Daily Bulletin

Good morning. The minimum wage increase was announced at a level in line with market expectations, non-inflationary, and unlikely to create obstacles for the interest rate cut cycle by the Monetary Policy Committee (MPC). With the resolution of a significant uncertainty that has been pressuring Borsa Istanbul for the past two weeks and strengthened expectations regarding the interest rate cut cycle, we expect a positive opening on BIST this morning, followed by continued buying. To put it in numbers, the BIST 100 index, which closed yesterday at 9,672, may test the 9,750–9,800 range within the first few hours. In the following days, it could move above 10,000, potentially towards the 10,100–10,300 range, which corresponds to the levels seen when the minimum wage uncertainty began to be priced in. Sectors that stand to benefit from interest rate cuts, such as banks, holdings, and REITs, along with labor-intensive sectors like food and textile retail, may come to the forefront today. However, since expectations of easing market interest rates support overall company valuations, we anticipate a positive trend across the BIST in general. Internationally, many markets will be closed today due to the Christmas holidays, and the holiday calm may persist through the end of the year. Domestically, however, due to the expectation that the MPC will initiate the interest rate cut cycle, we foresee continued buying momentum until 2:00 PM tomorrow, with the possibility of further buying in case of a significant rate cut. Today's agenda is relatively quiet. Domestically, the real sector confidence index and capacity utilization will be monitored. Turkey’s 5-year CDS premiums are starting the day at 259 basis points. A decline in CDS levels may be observed as the day progresses.