Daily Bulletin

Good morning. The weight of the geopolitical agenda, which intensified following the U.S. intervention in Venezuela, continues to dominate global markets. Most recently, U.S. President Trump turned his attention once again to Greenland, a territory belonging to another NATO member, Denmark, stating that all options, including military ones, remain on the table. Europe’s discomfort over this issue persists, and concerns about a potential escalation in geopolitical tensions are constraining equity markets this morning. U.S. futures are slightly negative, European futures are flat, while Asian markets are generally trading in negative territory. In contrast, the positive momentum in Borsa Istanbul remains intact. The BIST 100 Index closed yesterday at 12,023 points, posting a 2.8% gain. The top five contributors to the upside were ASELS, KLRHO, BIMAS, THYAO, and TUPRS, while KONTR, DAPGM, FENER, GRTHO, and MIATK had the most negative impact on the index. Stocks that have stood out with consistent fund inflows over the past week include THYAO, KCHOL, TUPRS, TOASO, ASTOR, and HALKB. From a technical perspective, resistance levels at 12,200 and 12,500, and support levels at 11,800 and 11,500 should be monitored. Given the rally supported by foreign inflows and rising trading volumes, we expect momentum to be maintained and resistance levels to be tested. A temporary consolidation may be observed around the 12,500 level; however, we reiterate our 12-month long-term BIST 100 target of 15,200. In addition, the ongoing decline in TRY interest rates may continue to support upward revisions in company target prices. On today’s agenda, inflation data in Europe and growth- and employment-focused data in the U.S. will be closely followed. Turkey’s 5-year CDS spreads start the day at 210 basis points.