Tel Aviv Stocks Set to Open After Sharp Drop, With Global Gains in Focus

The Tel Aviv Stock Exchange opens this morning after a volatile day in global markets, where optimism over a reported U.S.-Iran deal lifted Wall Street but triggered heavy selling in Israel across several major sectors. Yesterday, the TA-35 fell 2%, the TA-125 dropped 2.2%, and the TA Banks index sank 3.3%.

Insurance and energy were hit especially hard. The insurance index slid 5.8%, with Menora down 6.6%, Clal Insurance off 6%, Phoenix down 5.9%, Migdal down 5.5% and Harel losing 5.3%. The TA Oil and Gas index fell 4.4% on sharp declines in oil prices, while Energean dropped 5.3%, Navitas lost 4.2% and Delek Group fell 3.5%. Real estate and construction also weakened, with the TA Real Estate index down 3.7% and the TA Construction index down 4.1%.

Among the biggest decliners were AFI Properties, down 10.4%, Israel Canada, down 7.2%, and Prashkovsky, Melisron and Africa Israel Residences, each down more than 6%. Mega Or lost 6% and Shikun & Binui fell 5.7%. In contrast, G City jumped 7.8% after the announcement that Haim Katzman is stepping down as chief executive.

Chip stocks led the TA-35 thanks to positive arbitrage gaps, with Tower rising 7.6%, Nova gaining 6.3% and Camtek up 6.2%. Elbit Systems closed the index down 7.6%, reflecting weakness in defense shares, including a 9.2% drop in Aryt and a 14% plunge in Aerodrome. In New York, the Dow rose 0.9% to an all-time high, the S&P 500 gained 1.7%, and the Nasdaq jumped 3.1% after the U.S.-Iran news. Asian markets are mixed this morning as investors digest Japan’s rate hike to a 31-year high and weaker-than-expected Chinese data, while futures on Wall Street are little changed.