Tel Aviv Stock Exchange Closes Down Amid Global Market Turmoil
Translated & summarized from Globes by baba
The Tel Aviv Stock Exchange closed lower, influenced by global market downturns attributed to geopolitical tensions and economic concerns. The TA-35 index dropped 1.1% and the TA-90 index fell 0.4%. The oil and gas sector bucked the trend with a gain, while insurance and finance sectors saw significant losses. In corporate news, Hagej group is reducing its stake in Rani Zims Shopping Centers, and Lsico Group secured a new energy sector contract.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange closed down 1.1% on TA-35 and 0.4% on TA-90 amid global market fears.
- Global market sentiment was negative due to concerns about Iran conflict, AI company debt, and French instability.
- The oil and gas sector rose 0.9% on the Tel Aviv exchange, contrasting with other indices.
- Hagej group is selling a 7.5% stake in Rani Zims Shopping Centers for 75 million shekels.
- Lsico Group signed a new 150 million shekel energy sector contract for a power station.
The Tel Aviv Stock Exchange concluded trading with declines on Monday, mirroring a negative sentiment across global markets. The TA-35 index fell by approximately 1.1%, while the TA-90 index weakened by about 0.4%. These drops were attributed to concerns over a potential escalation of conflict with Iran, the substantial debt taken on by AI companies, and instability in France. The insurance sector led the declines, dropping by roughly 2.1%, followed by the finance sector at 1.2% and technology and banking sectors at 0.6% each. Dual-listed chip stocks like Camtek, Tower, and Nova were particularly affected, reflecting a downturn in the semiconductor sector on Wall Street, where the SOXX ETF fell by approximately 5%.
Conversely, the oil and gas index saw a rise of about 0.9%, driven by increasing global oil prices. Trading volume totaled around 4 billion shekels. Earlier in the day, the market experienced mixed trends, with the TA-35 index showing a slight decline and the TA-90 index a modest gain. The oil and gas and construction indices were among the top performers, while the insurance index continued to lag.
In corporate news, the Hagej group announced it would sell a 7.5% stake in Rani Zims Shopping Centers for 75 million shekels, a deal valuing the company at 1 billion shekels. Rani Zims also secured an option to purchase an additional 7.5%, potentially making it the sole controlling shareholder. The transaction would reduce Hagej's stake to approximately 22.16% and increase Zims' to about 36%, with the option potentially raising Zims' holding to 44%.
Separately, Lsico Group expanded its energy sector activities, with its subsidiary Foldmeer Building signing a second agreement for a power station construction project in southern Israel, valued at approximately 150 million shekels. This adds to a previous agreement of 70 million shekels, bringing Lsico's total work on the project to about 220 million shekels. The company, which shifted its focus to the energy sector this year, has also secured other significant projects in power substations and a switching station.
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