Global Chip Sector Fears May Impact Tel Aviv Stock Exchange
Translated & summarized from Calcalist by baba
The Tel Aviv Stock Exchange is anticipated to open with concerns over the global chip sector, following sharp declines in Asian and US markets. Major chip companies like SK Hynix and Samsung experienced significant drops due to increased competition. Locally, Tower Semiconductor and Nova Ltd. also fell, while Teva Pharmaceuticals saw a rise after FDA approval. The IMF has upgraded Israel's 2026 growth forecast to 4.5% but expressed greater pessimism for 2027.
The story in 6 lines · by baba
- Tel Aviv Stock Exchange faces opening pressure due to global chip sector anxieties.
- Asian and US markets saw sharp drops in memory chip stocks, including Micron and SanDisk.
- SK Hynix fell 9% and Samsung 8% amid competition from Chinese firm CXMT.
- Tower Semiconductor dropped 6.1% and Nova Ltd. 4.1% on the Tel Aviv exchange.
- Teva Pharmaceuticals rose 5.3% on FDA approval for a schizophrenia treatment.
- IMF raised Israel's 2026 growth forecast to 4.5% but is less optimistic for 2027.
The Tel Aviv Stock Exchange is expected to open amid global concerns in the chip sector, particularly memory chips. This follows significant drops in Asian markets and sharp declines on Wall Street the previous evening, affecting major companies like Micron and SanDisk. The downturn is attributed to increasing competition from Chinese memory manufacturer CXMT, which reported advancements in new chip architecture. South Korean chip giant SK Hynix saw its stock fall by 9%, while Samsung lost 8%. In Japan, technology investment firm SoftBank dropped 8%. On Wall Street, Micron fell 3.9% and SanDisk 6% in the prior session.
In local trading, the Tel Aviv 35 and 125 indices saw minor gains of up to 0.1% the previous day. However, the chip sector's struggles weighed on the market at closing, with Tower Semiconductor down 6.1% and Nova Ltd. falling 4.1%. Conversely, Teva Pharmaceuticals rose 5.3% after announcing Friday that it received FDA approval for a monthly injectable treatment for schizophrenia. Electra Real Estate surged 14.2%, with Elco expected to provide at least NIS 95 million in cash flow.
Meanwhile, the International Monetary Fund (IMF) has raised Israel's growth forecast for 2026 by a full percentage point to 4.5%, while lowering its inflation forecast for the country to 1.8%. However, the IMF's outlook for 2027 is more pessimistic than that of the Bank of Israel, citing factors such as expensive oil, returning inflation, and a rising public debt.
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