Israel's Stock Exchange Reopens After Holidays Amid Energy Ministry Support for Refinery Sale

The Tel Aviv Stock Exchange is resuming normal trading activity following the conclusion of the holiday period. This comes after a positive closing session on Wall Street, with the Dow Jones, S&P 500, and Nasdaq all experiencing gains. These U.S. market movements have created notable positive arbitrage gaps for Camtek and Ormat on the Tel Aviv exchange.

In the energy sector, Brent crude prices are down nearly 1%, and WTI prices have fallen by 1.2%. U.S. 10-year bond yields have decreased by 2 basis points to 5.26%, while Israeli 10-year bond yields stand at 4.14%.

The Ministry of Energy is reportedly backing the acquisition of the Ashdod oil refinery by Shapir Golan Hazani, a stance that contrasts with the position of the Concentration Committee. The Ministry's Director General, Yossi Dayan, has argued in a position paper that without a controlling core or strategic investor, the refinery (Baz'a) may struggle with efficient operations, financing development, and optimal decision-making. The Concentration Committee, however, stated in July that there is no basis for such concerns. The Ministry of Energy is requesting a renewed discussion on granting Shapir control of Baz'a.

Meanwhile, foreign investors' purchases on the Tel Aviv Stock Exchange have significantly decreased, dropping by 70% in the past twelve months to just NIS 400 million. This represents only 4.5% of the volume of shares foreign investors bought in the corresponding period previously. This decline is attributed, in part, to uncertainty surrounding the upcoming Knesset elections scheduled for October 27.