Daily Bulletin
Tacirler Investment
Good morning. Global markets are starting the new week looking for a morale boost. U.S. and European futures are in slightly positive territory this morning following Friday's selloff, while Asia is only now pricing in the selling that hit Western markets on Friday. Oil prices are still around USD 110/barrel and U.S. threats against Iran continue. In Brazil, Lula Da Silva, who lost the first round of the presidential election, won; we will likely see notable selling in the Brazilian stock market, but we do not think this will have a meaningful impact on emerging market equities. On Friday, Borsa Istanbul tested 10,707, the middle of our 10,500 / 11,000 target zone, but with the reaction toward the close, the XU100 index ended the day 0.9% lower at 11,117 points. Companies that contributed positively to the index were TUPRS, BIMAS, HALKB, KCHOL and ENKAI, while those that weighed on the index were EREGL, AKBNK, ASTOR, TCELL and GUBRF. Companies that stood out with regular money inflows over the past week were YKBNK, GLYHO, MAVI, ENTRA, LIDFA, TURGG, BIOEN, ATAKP and AKSA. Technically, the 10,700 and 10,500 supports and the 11,250 and 11,550 resistances can be monitored. Borsa Istanbul will trade for three and a half days this week due to the October 29 Republic Day holiday. Due to the requirement for hedge funds to sell one third of their share holdings exceeding the limits, we may see pressure from this channel later in the week. The day's agenda is quiet. On the week's agenda, the Fed and ECB rate decisions will be watched. Turkey's 5-year CDS premium starts the day at 263 basis points.