Israel's Stock Market Opens Q4 Amidst Mixed Global Cues and Airline Stock Surge

The Tel Aviv Stock Exchange is entering the fourth quarter of the year after closing the third quarter with gains, despite a decline in second-tier stocks. The TA-35 index saw a quarterly increase of 3.8%, and the TA-125 rose by 1.8%, while the TA-90 experienced a 3.9% drop. Trading on Tuesday will conclude early at 2:30 PM, as is customary during intermediate festival days, marking the end of the trading week. The exchange will be closed on Wednesday for Hoshanah Rabbah and the eve of Simchat Torah.

Investors will continue to monitor aviation stocks, El Al and Israir, which surged significantly on Monday with gains of 7.9% and 8.8% respectively, on high trading volumes. This rise is attributed to a recent terrorist incident involving a Flydubai flight, leading to expectations that Israelis may prefer domestic airlines in the near future.

In a separate development, Canon, controlled by Idan Ofer, is making its first-ever acquisition by purchasing a 25% stake in the American infrastructure company Vicinity for $450 million. This deal values Vicinity at $2.92 billion, including debt. Harrison Street, an asset management firm with $110 billion in assets, is also participating in the acquisition, buying a 35% stake.

Global markets showed mixed performance overnight, with the Dow Jones Industrial Average falling 0.9%, the S&P 500 declining 0.3%, and the Nasdaq Composite gaining 0.3%. The yield on 10-year US Treasury bonds increased by 5 basis points to 5.30%. The yield on 10-year Israeli government bonds opened the quarter at 4.09%, following a 41 basis point rise in the third quarter.