Tel Aviv Stock Exchange Closes Week With Strong Gains Amid Positive Inflation Data
Translated & summarized from Globes by baba
The Tel Aviv Stock Exchange concluded a strong trading week with significant gains, with the TA-35 index up 4.5% and the TA-90 up 5.5%. Positive inflation data, showing a 0.5% monthly decrease and 1.6% annual rate, boosted market sentiment. Analysts anticipate the Bank of Israel will maintain current interest rates this month despite the favorable inflation figures. Notable stock movers included Electra Real Estate, which surged 30%, while dual-listed tech stocks saw declines.
The story in 6 lines · by baba
- The Tel Aviv Stock Exchange closed the week with substantial gains, TA-35 up 4.5% and TA-90 up 5.5%.
- Lower-than-expected inflation data, a 0.5% monthly drop, fueled positive market sentiment.
- Analysts expect the Bank of Israel to keep interest rates unchanged this month.
- Electra Real Estate shares surged approximately 30% during the week.
- Dual-listed tech stocks like Kamatech and Tower experienced significant declines.
- Nofar Energy secured agreements for energy storage projects in Romania.
The Tel Aviv Stock Exchange concluded a strong trading week with significant gains, driven by better-than-expected inflation data and positive sentiment from Wall Street. The TA-35 index rose 1.6% and the TA-90 index climbed 1.9% on Friday, capping a week where the TA-35 gained approximately 4.5% and the TA-90 rose 5.5%. Sector-specific indices also performed well, with the Construction index up about 9.5%, and Energy Infrastructure and Insurance indices rising 7% and 6% respectively.
Analysts suggest that while the annual inflation rate of 1.6% might allow for future interest rate cuts, concerns over housing costs and fuel prices necessitate caution. Ronen Menachem, Chief Economist at Mizrahi Tefahot, indicated that the Bank of Israel is likely to hold interest rates steady this month due to these factors and the upcoming elections. Despite this, the market closed the week positively.
Notable stock performances included Electra Real Estate, which surged approximately 30%, and Opko Health, up around 18%. Conversely, dual-listed tech stocks like Kamatech, Gilat, and Tower experienced declines of about 9%. In other corporate news, Nofar Energy signed agreements for battery energy storage systems in Romania, with equipment delivery expected in late 2026 and commercial operation beginning in the third quarter of 2027. Acro Real Estate's stock jumped following the fulfillment of merger conditions with Israel Canada, pending final registration.
Globally, Wall Street indices were heading for a week of losses, with the Nasdaq down around 2%. Sentiment was influenced by comments from Federal Reserve Chairman Kevin Warsh regarding artificial intelligence investments and a reduction in expectations for interest rate hikes. The Israeli Shekel weakened against the dollar, closing at 3.103, erasing recent gains, while Brent crude oil remained above $100 per barrel amidst geopolitical tensions.
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