Daily Comment
20.10.2017

World markets were broadly flat on Thursday, while European counterparts declined on political concerns over Spain and some lower than expected earnings announcements. The BIST100 has, however, decoupled positively, rising 1.4% to close at 108,434, led by the 2.5% average rise among banking sector stocks, thanks to positive expectations of a resolution to the diplomatic spat between Ankara and Washington, as well as 3Q17 earnings expectations. Total trading volume was at TRY 6.1bn. Today, investors await September existing home sales data from the US, and will remain focused on news flow regarding a resolution of the diplomatic dispute with the US. The earnings season in Turkey starts today with Arçelik’s expected announcement; we expect the households goods producer to have attained a net income of TRY 240mn in 3Q17. The rising US$ index and Treasury yields on buoyant optimism over tax reforms following the US Senate’s approval of the 2018 budget may exert some pressure on EM currencies. However, we expect the BIST to maintain its uptrend with strong growth and positive earnings expectations, especially for industrials in 3Q17. RESISTANCE: 108,800-109,600 SUPPORT: 107,700-107,000.