Tel Aviv Stock Exchange Ends Lower Amid Global Tensions and Oil Price Surge

The Tel Aviv Stock Exchange concluded its trading day with significant declines, as the TA-35 index fell by 0.8% and the TA-90 index dropped by 1.4%. This downturn follows two consecutive days of losses and was influenced by geopolitical tensions between the U.S. and Iran, coupled with a sharp rise in oil prices. All industry sectors experienced losses, with real estate indices, including construction and income-producing real estate, leading the decline with approximately 1.5% drops. Energy and Cleantech indices also lost around 1%, as did the finance, banking, and insurance sectors.

Among the notable individual stocks, Eretz Industries, Ampa, and iAIAS were among the biggest decliners. Conversely, Mor Investments, Beit Shemesh, and Bazan saw minor gains. Dor Alon Energy attracted attention following a report of suspected large-scale embezzlement totaling approximately NIS 40 million, allegedly by employees over the past two years across several gas stations. The company has hired an external investigation firm and filed a police complaint, estimating that insurance will significantly mitigate the net profit impact.

Navitas Petroleum's stock continued its decline, shedding an additional 3% and accumulating a 9% loss since the previous Thursday. The company is facing legal challenges from Argentina, which intends to file a criminal complaint against Navitas and its subsidiaries over oil exploration activities in the Falkland Islands. Argentina claims sovereignty over the islands and disputes the validity of British licenses under which Navitas operates, potentially jeopardizing the company's flagship Sea Lion project.

In other news, the Israel Securities Authority and the Tel Aviv Stock Exchange announced the formation of joint working teams to advance the Israeli capital market by extending trading hours into the evening by 2027, aiming to enhance its international standing and global integration. Arbe Robotics saw its stock surge after being selected with its Chinese partner, Hirain, for a Level 3 autonomous driving program with a major global automotive group.