Decline in CDS and Rate Cut Expectations Support Banking Stocks in Borsa Istanbul

Pusula Yatırım Chief Economist Assoc. Prof. Dr. Filiz Eryılmaz stated that the decline in Turkey's 5-year CDS to 215 basis points and the steps taken by the Central Bank have positively affected banking stocks and the general market in Borsa Istanbul.

Decrease in Risk Premium and Macroeconomic Effects

It was stated that Turkey's 5-year risk premium declined to 215 basis points, falling below pre-war levels. Pusula Yatırım Chief Economist Assoc. Prof. Dr. Filiz Eryılmaz emphasized that the reduction in war risk and the decline in oil prices would ease pressure on inflation and the current account deficit.

Eryılmaz expressed that, alongside the Central Bank of the Republic of Turkey's repo steps, declining CDS rates and interest rate cut expectations supported the positive trend in the markets.

Banking Stocks and Foreign Investor Interest

It was stated that interest rate cut expectations created a positive impact, particularly on banking stocks. It was noted that foreign investors' interest in the market could increase alongside falling CDS rates.

Stating that purchases observed on the bond side have begun to be reflected in equities, Eryılmaz noted that the upward movement in the banking sector has become more pronounced.

Critical Levels and Resistance Tracked in the Stock Market

Pointing out that the 14,600 to 14,700 band in Borsa Istanbul has not yet been breached, Eryılmaz stated that the Capital Markets Board's fund guide plays a critical role regarding market expectations.

Emphasizing that the 14,800 level is an important resistance in the market, Eryılmaz assessed that if this threshold is crossed, the target could be 15,200 and all-time record levels, adding that as long as the current outlook persists, pullbacks could be viewed as buying opportunities.