Daily Comment

Global stock markets in general retreated on Thursday following the rather hawkish announcement of the US Fed’s policy decision, and revelations that it intends to deliver another rate increase in 2017, and that it would start reducing the size of its US$4.5tn asset portfolio in October by US$10bn a month. The Fed’s announcement has led to a weakening in EM currencies, and especially in the TRY. The BIST100 closed 1.3% lower at 104,001; total trading volume in the market was at TRY 5.0bn. Today, market participants will follow the National Safety Council’s meeting ahead of the referendum in Northern Iraq, expected to be held on September 25th. President Erdogan and his US counterpart held a meeting yesterday, where both leaders rejected a plan for the Kurdistan Regional Government’s referendum, the event of which may lead to a swift recovery in both the stock market and the TRY. Meanwhile, Parliament’s Extraordinary General Assembly will discuss the situations in Iraq and Syria. Investors will also follow various Fed members’ speeches today. We expect the BIST to open with reactionary buying today, and rather volatile trading. RESISTANCE LEVELS: 104,600 / 105,600 / SUPPORT LEVELS: 103,000 / 102,400.