Daily Comment

Major global equity markets continued to recover on the last trading day of the week. The BIST100 also closed 0.25% higher at 116,511; total trading volume was at TRY 6.8bn. There are no major data announcements due out today. Locally, despite its declining impact on the market, developments in Turkey’s operation Olive Branch will be followed. Any positive news flow on this front could be expected to reflect positively on the markets. Otherwise, the BIST should continue its reactionary uptrend, in parallel with the major equity markets, supported by discounted banking sector stocks compared to its EM peers, and strong economic growth prospects. As long as the VIX remains below its critical gauge of 20, global risk appetite is expected to strengthen, led by the US. Nevertheless, the currently critical level of this index suggests a limited upturn, and may lead to profit takings during the week. Asian markets have been trading positively, joining the global recovery on improving sentiment today. The US markets will be closed; trading volume is likely to be lower today. We, thus, expect a positive opening at the BIST, with volatile and range-bound trading to follow. RESISTANCE: 117,500-118,600 SUPPORT: 115,900-114,400.