Daily Bulletin

Good morning. Following the release of U.S. PPI data yesterday, which came in below expectations, global risk appetite remains on the positive side. While U.S. stock markets saw buying activity yesterday, futures are flat this morning, and positive sentiment persists in Europe. In Borsa Istanbul, there was a limited pullback yesterday; however, we expect some recovery buying this morning. From a technical perspective, the BIST 100 index remains in a consolidation phase, with our medium-term range forecast set between 9,500 and 10,300. Considering the index is currently around 9,700, we assess the downside margin as limited (-200 points) and the upside potential as slightly higher (+600 points). This period can be viewed as an “accumulation phase” for medium- and long-term investors. Our 12-month index target remains at 13,900, implying a potential return of 43% at the index level. This figure is above the expected inflation rate and the possible net deposit yields for the upcoming year. The potential return for the stocks we expect to outperform the index or within our model portfolio is calculated to be even higher. Hence, we believe equity markets remain attractive. On today’s agenda, the U.S. CPI data will be closely monitored, following the positive market impact of yesterday’s PPI figures. Domestically, the budget balance will be in focus. Turkey’s 5-year CDS premiums are starting the day at 274 basis points.