Daily Bulletin

Good morning. Tensions in the Middle East remain elevated. The 48-hour deadline given by the US to Iran, along with mutual threats to strike energy infrastructure, is weakening the view that the conflict could come to an end in a short period of time. As oil prices remain in the USD 105–110/bbl range, we also observe that global equities continue to trade under significant pressure. Following the sharp sell-off seen in the US and Europe on Friday, futures are still markedly negative. European futures are down by around 1.5%, while losses in Asian markets exceed 5% in some cases. The BIST 100 Index declined by 0.5% on Thursday to close at 13,047 points. The top five contributors to the index were BIMAS, KCHOL, FROTO, ENJSA and ANSGR, while ASELS, AKBNK, KLRHO, TRALT and ENKAI were the main drags. Stocks that have stood out with consistent money inflows over the past week were TRMET, ARCLK, SASA, ENJSA and ALKLC. We expect a negative opening in Borsa Istanbul this morning, in line with weak global risk appetite. As long as oil prices remain elevated, appetite for BIST is likely to stay subdued. On the technical side, support levels stand at 12,800 and 12,400 / 12,500, while the 13,250 / 13,300 range can be monitored as the resistance zone. On today’s agenda, the economic confidence index and foreigners’ securities transactions will be followed domestically. Turkey’s 5-year CDS starts the day at 310 bps.