ISTANBUL, July 16 (Reuters) - A day after reaching a new 2009 year high Turkish equities were trading flat ahead of a central bank rate decision expected to bring a 50 basis point rate cut after markets close on Thursday.
Turkish markets have followed global sentiment higher over the past weeks. The index has risen nearly 45 percent since the beginning of the year.
Turkish stocks were trading 0.3 percent lower at 37,799 at 0553 GMT.
"Our market looks tired. We gained fast yesterday due to global markets, but we are in a difficult band to break out of -- that is between 36,300 and 37,800. We are having some difficulty going any higher now," said Metin Turkes, portfolio manager, at Deniz Portfolio.
The lira was trading at 1.5310 against the dollar from the previous day's close of 1.5330, while the May 11, 2011 benchmark bond was trading at 11.60 percent after closing the previous day at 11.56 percent.
"The expectation if a small 25 to 50 basis point rate cut has already been priced in," said Turkes.
The central bank, which will announce its July rate decision after the market closes on Thursday, is expected to extend its rate cutting cycle to a new record low of 8.25 percent from a current 8.75 percent.
It has already cut interest rates by 800 points since November amidst a major economic slowdown, during which Turkey's economy contracted 13.8 percent in the first quarter of the year.
Turkey's previous benchmark bond Feb. 2, 2011 fell to a historic low of 11.37 percent earlier in the month on increased expectations for a July interest rate cut.
Turkish corporations will start announcing their second-quarter earnings next week with landline operator Turk Telekom due to report on Monday. (Reporting by Thomas Grove; Editing by Jon Loades-Carter)