Tel Aviv Stock Exchange Ends Quarter Down Amid Flydubai Incident; El Al, Israir Soar

The Tel Aviv Stock Exchange closed the final day of September and the third quarter with declines, as the TA-35 index fell 0.4% and the TA-125 index dropped 0.2%. The banking sector index saw a significant 1.7% decrease. However, Israeli aviation stocks surged following an incident on a Flydubai flight, which is being investigated as a potential terror attack. El Al Airlines jumped 7.9% and Israir Airlines rose 8.8%, with both companies experiencing unusually high trading volumes, three and a half times their daily average.

In other market news, Alrov Real Estate soared 18.6% after its controlling shareholder, Alfred Akirov, announced intentions to delist the company through a tender offer. Major banks experienced losses, with Bank Leumi down 2.1% and Bank Hapoalim and Mizrahi Tefahot each losing 1.5%.

Looking at monthly and quarterly performance, the TA-35 index gained 1.6% in September, while the TA-125 saw a 0.5% increase, and the TA-90 index fell 2.7%. Over the third quarter, the TA-35 rose 3.8%, the TA-125 gained 1.8%, and the TA-90 dropped 3.9%. Sector-wise, insurance stocks surged 5.2% for the quarter, while energy and technology sectors saw declines.

The Flydubai incident involved a flight from Dubai to Israel that experienced distress signals and a sharp descent, diverting to Saudi Arabia. Initial assessments suggest the Omani pilot may have attempted to crash the plane, with an Emirati pilot and an undercover security officer among passengers reportedly intervening to regain control. While El Al and Israir do not currently fly directly to the UAE, the incident is expected to encourage Israeli travelers to opt for Israeli airlines for connecting flights, even at a higher cost, due to security concerns regarding Dubai as a transit hub.