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Local Equities Firm but Benchmark Index Still Below 8000 Level

TURKEY
Turkish stocks have traded firmer Wednesday, recovering from levels yesterday which saw the benchmark Borsa Istanbul index record its lowest level since late August. The index is up 0.75% at typing, with the banking sector index up over 3%.
  • Sector experts who recently spoke to Turkish newspaper Ekonomi said closing below the 8000 level as well as settling below the 7950-8100 region (marked at publication by the 21- and 9- day EMAs, respectively), indicates that the technical outlook for the benchmark index has turned negative. Moreover, the index recently recorded a fresh all-time high having risen over 120% in the post-election period. Profit-taking behaviour may therefore lead to corrective price action, experts have warned.
  • Looking ahead, attention will turn to the CBRT rate decision tomorrow, where a 500bp rate hike is expected following a sustained increase in inflation expectations and momentum as well as backing of tight monetary policy by President Erdogan. See the full MNI Preview, with a summary of sell-side analyst views, here.

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