Tel Aviv Stock Exchange Ends Week Lower Amid Global Uncertainty

The Tel Aviv Stock Exchange (TASE) opened the intermediate days of the Passover holiday week with declines, mirroring global trends. The TA-35 index fell approximately 0.7%, and the TA-90 index dropped about 0.9% by the early close. Real estate stocks led the downturn, with the construction index down 1.8%, and Electra Real Estate experiencing a significant 16% drop. The oil and gas index also declined by 1.2%, influenced by stocks like Energean, Tamar Petroleum, and Delek Group. Bank and insurance indices, which had previously shown gains, also moved into negative territory.

Conversely, the cleantech index bucked the trend, rising over 1%, with notable gains in Doral Energy, Nofar Energy, and Econerg. Stark Power, an energy and data center company operating in the U.S., secured $85 million in financing from Bank Hapoalim to acquire energy projects in the U.S., with an initial acquisition of a power station and energy storage project reportedly in advanced negotiations.

The Israeli Shekel weakened against the dollar, trading around 3.06 shekels, influenced by anticipated Wall Street declines, a strengthening global dollar, rising bond yields, and regional risk premiums. The market remains sensitive to geopolitical developments affecting oil supply and regional tensions.

Globally, markets opened with a negative sentiment, reacting to President Trump's decision to delay an Iranian proposal regarding the Strait of Hormuz. Asian markets showed mixed performance, while U.S. futures indicated declines. Oil prices and long-term U.S. Treasury yields reached multi-decade highs. U.S. markets had closed the previous week with gains, driven by Meta's AI advancements, but upcoming U.S. employment and inflation data are expected to be key market drivers this week.

Bond markets saw continued increases in U.S. Treasury yields, with the ten-year yield reaching 5.207% and the thirty-year yield at 5.51%, levels not seen in years. Analysts warn that the rapid rise in yields could trigger a market correction, citing historical precedents of economic disruptions following similar yield surges. Concerns over rising government debt, geopolitical tensions, inflation, and potential monetary tightening are contributing factors.