Daily Comment

World stock markets generally declined on Thursday after policy meetings from major central banks. Having started the day on a positive note following the US Fed’s policy decision, trading turned volatile at the BIST. At its long-awaited MPC meeting, the CBT has hiked only the late liquidity window rate by 50bps to 12.25%, which was below market expectations of a ca.100bps increase; the O/N lending and weekly repo rates were maintained unchanged at 9.25% and 8.0%, respectively. The BIST nevertheless closed 1.4% higher at 109,666, thanks to the 2.0% and 1.9% advances among the banking sector and services stocks. Today, TurkStat is to announce September’s labor data, and the MoF will share November budget realizations. From abroad, Eurozone trade balance and US November Industrial production and CUR prints, and December Empire Manufacturing data will be monitored. Asian markets have been declining today, and the European markets are also expected to open negatively. We expect the BIST to open with some selling; trading could be volatile during the day. RESISTANCE: 110,000-110,700 SUPPORT: 109,300-108,400.