Daily Bulletin

Good morning. The global outlook continues to remain in positive territory. U.S. and European futures, as well as Asian equity markets, are broadly trading higher again this morning. Although the U.S. intervention in Venezuela has triggered geopolitical activity on a global scale, markets appear to be largely unaffected from a negative standpoint. Regarding optimistic expectations that Venezuelan oil could re-enter global circulation, we remain cautious in the near term due to factors such as the need for substantial infrastructure investments and high extraction costs. As a result, a moderation in global risk appetite toward mid-week cannot be ruled out. In Borsa Istanbul, expectations of interest rate cuts from the MPC remain intact following the inflation data released yesterday, which continues to provide support. After rising by 2.1% on Friday, the BIST 100 index gained a further 1.8% yesterday, reaching 11,702 and closing at a new all-time high in TRY terms (intraday high: 11,726). The top five positive contributors to the index yesterday were KLRHO, ASELS, TUPRS, DSTKF, and BIMAS. Stocks that have attracted steady fund inflows over the past week include KCHOL, TUPRS, MGROS, TOASO, EKGYO, KRDMD, and ULKER. We believe the current momentum in the BIST could be maintained toward the 12,000–12,200 range, while some consolidation may occur in the 12,200–12,500 band. The stop-loss region for this outlook would be the 11,450–11,500 support area. On today’s agenda, PMI data in Europe and the U.S. stand out. Turkey’s 5-year CDS premiums start the day at around 207 basis points.