Türkeifonds - Türkei 75 Plus

Market comment

After opening lower yesterday, the ISE benchmark kept its downward posture, while the intraday July Industrial Production data had no effect on the market. In the end, the index closed the day at 60,746 with 0.6% loss. For today, we expect the ISE to open lower due to the renewed reservations about the global economy, as further strengthening in the Japanese Yen may create an added pressure on the EM currencies and equities. After yesterday’s weak sentiment, we anticipate the index to remain under pressure today in the single-session trading day, with some investors looking to reduce their positions before the upcoming referendum. Market will be closed in the afternoon till September 13^th.

Politics

With days left to the referendum on constitutional amendment on Sunday, the EU Commission accused the AKP government on limiting public debate on the planned changes

Economy

End of year CPI inflation expectations post a slight increase in line with the announced spike in August CPI inflation: now estimate stands at 7.5% for 2010YE compared to 7.34% reported as of end of August

The Treasury sold TL a net of TL1,863mn of the April 25, 2012 zero coupon bond at an average yield of 8.13% yesterday much below the expectations of 8.18%. 

News in brief

National Bank of Greece (NBG) announced a new capital raising plan and a possible public offering of Finansbank.