Daily Bulletin

Good morning. The U.S. threat of a “new economic offensive targeting Iran’s trading partners” is putting pressure on global equity markets. U.S. and European futures are slightly negative, while more pronounced declines are being seen across Asian markets. Oil prices, meanwhile, continue to hold above $90. On the domestic front, the CBRT’s announcement that it will resume weekly repo auctions, which it had suspended following the outbreak of the U.S.-Iran war, is a positive development. As a result, the CBRT’s Weighted Average Funding Cost, which is currently around 40% in effective terms, is expected to gradually decline toward the policy rate of 37%, followed by the possibility of policy rate cuts. We maintain our year-end policy rate forecast of 35%. We expect this to be supportive primarily for the XBANK Banking Index, followed by the broader BIST market. Turning to Friday, the BIST 100 Index rose 0.8% to 14,514 points. The five companies making the largest positive contributions to the index were TUPRS, BIMAS, DSTKF, ASTOR, and TRALT, while ODINE, TKFEN, BSOKE, MAGEN, and BTCIM were the main negative contributors. The companies that have stood out with consistent net inflows over the past week are TUPRS, ASELS, BIMAS, KCHOL, TRMET, TOASO, TCELL, and ENDAE. From a technical perspective, resistance levels at 14,600 and 14,880 and support levels at 14,400 and 14,270 can be monitored during the day. The economic calendar is relatively light today. Turkey’s 5-year CDS premiums are starting the day at 220 basis points.