Daily Bulletin

Good morning. Following the release of bank earnings in the U.S., positive results from technology companies, progress expectations in U.S.–China negotiations, and indications that the government shutdown could end next week are driving gains in U.S. equities. In Asia, the resolution of political gridlock in Japan and stronger-than-expected growth data from China are supporting regional markets. The outlook in Europe is also broadly positive. In summary, global risk appetite remains constructive. At Borsa Istanbul, the index rebounded by 2.7% yesterday, holding above the key support zone of 10,200–10,300 and moving toward the resistance area at 10,500–10,600. We expect the recovery to continue today, supported by high trading volumes, capital inflows, and foreign buying interest. The next resistance levels are at 10,700 and 10,900–11,000. From a long-term perspective, valuation-based analysis suggests a 12-month BIST 100 index target of around 15,150, implying approximately 45% upside potential. In a period when market expectations for a 100–150 basis point rate cut by the Central Bank are intensifying, the banking, insurance, and REIT sectors continue to play a leading role in index performance. Yesterday, the top five contributors to the index were ASELS, AKBNK, BIMAS, YKBNK, and TUPRS, while the main laggards were IEYHO, ECILC, GENIL, TOASO, and KUYAS. On the inflow side, EREGL, CCOLA, AKSEN, TUPRS, and TCELL have shown consistent foreign inflows over the past week. The economic calendar for the day is relatively quiet. Turkey’s 5-year CDS spreads start the day at around 270 basis points.