Israeli Stocks Decline Amid Political Uncertainty and Global Economic Cues

The Tel Aviv Stock Exchange experienced a downturn, with the TA-90 index closing down 1.4%, primarily due to pressure from insurance and real estate stocks. Companies like Erot and Aerodrom also saw significant drops. In contrast, USA stocks climbed 15% following an announcement about its participation in an autonomous driving program, and Prime saw gains after positive initial coverage from Phoenix Brokerage.

Politically, 12 European nations, led by the UK, have decided in principle to impose sanctions on Israeli settlements in Judea and Samaria. However, the implementation of these measures has been postponed for six to nine months. This delay is seen as an indication that these countries believe a change in Israeli government could lead to a policy shift, potentially negating the need for sanctions. The stock market appears to be in a holding pattern, awaiting the outcomes of the upcoming elections.

In corporate news, BAZAN is facing a new development regarding its potential relocation from Haifa Bay. The Ministry of Energy has released a study suggesting that moving the refining capacity south and building a new refinery would cost approximately $5-6 billion. This figure is comparable to BAZAN's own economic assessment of over $5 billion for vacating its Haifa operations, though BAZAN clarified this was not a formal compensation demand. The ministry's plan recommends relocating petrochemical activities from Haifa while maintaining refining capabilities in Israel by establishing a new refinery in the south.

Other company updates include Pulsenmore completing CE registration in Europe for its home ultrasound system for fertility monitoring, potentially expanding its market reach. Tomer Food estimates a net impact of NIS 2-3 million on its equity and 2025 profits due to inventory issues. Tigi signed a non-binding memorandum of understanding for a merger with the US-based EPPUR, which focuses on server farm projects. Israelidream is expanding its operations in Greece by acquiring a 50% stake in a new hotel project in Athens. Electra Real Estate's private placement was canceled, leading to a significant stock drop, though Menora stepped in to acquire a stake.

Navitas Petroleum faces a criminal complaint filed by Argentina's President Javier Milei's office, alleging operations in licenses granted by the UK in the North Malvinas Basin violate Argentine law. This marks a significant escalation in the dispute. In the tech sector, Asian chip markets saw sharp gains, influencing local tech stocks like Tower Semiconductor, Nova, and Camtek. Exxon Vision received an initial defense order for its ForceField system, valued at up to NIS 15 million.