Following the rally within the last couple of weeks, ISE attracted some sellers with the negative sentiment across the global bourses. Banking sector stocks were hit hardly since there was not enough participation on the buy side. Also the rising benchmark bond yield and the depreciation of currency placed some extra pressure on the equities which dragged the index to close the day 2.84% lower at 27,892. Today the negative mood is likely to continue as Dow Jones lost further ground after the closing of ISE. We anticipate the market to open negative around 1% to 1.5% and to trade further down below 27,500 level during the day. After the new wave of Ergenekon detentions, the summit organized by the high military officers might escalate the political tension which may place extra pressure on the local financial markets. On the global front, release of the US "Initial Jobless Claims" data at 15:30 local time is the event of the day which may create volatility in the equities. In the bond market morning quotations stand at 16.22% compared to the yesterday’s closing level at 15.94% and the currency is weaker at 1.5530.
Local markets recorded losses today along with other emerging markets on U.S. and European market sell-off. Although rates have reversed their trend of the past couple of weeks, they remain lower than the overnight funding rate. The Treasury of Turkey is planning to issue a USD denominated Eurobond with a maturity date of July 2017.
