Tel Aviv Stock Exchange Ends Week Down Amid Geopolitical Tensions
Translated & summarized from Globes by baba
The Tel Aviv Stock Exchange closed a negative week, with the TA-35 index down 1.4%, influenced by global tech stock declines and geopolitical tensions. The technology sector was the biggest loser, while real estate and construction led gains. In corporate news, FIMI fund made an offer for Maytronics, and a dispute arose over a $6.7 billion gas deal. The US dollar weakened against the Israeli shekel.
The story in 6 lines · by baba
- Tel Aviv Stock Exchange's TA-35 index ended the week with a 1.4% decline.
- The technology sector was the worst performing, plunging 1.9% during the week.
- Real estate and construction sectors showed strong gains, with TA-Building up 4.6%.
- FIMI fund offered NIS 200 million for a 50% stake in Maytronics.
- A dispute emerged over a $6.7 billion gas deal involving the Leviathan field.
- Super Power acquired competitor Paz Gas Energy for up to NIS 25 million.
The Tel Aviv Stock Exchange concluded a negative trading week, influenced by sharp declines on Wall Street, particularly in technology stocks, and heightened geopolitical tensions. The TA-35 index shed approximately 1% of its value, while the TA-125 index weakened by about 0.8%. The TA-90 index, however, showed relative stability, closing down only 0.1%.
Sector-wise, technology led the downturn, plunging 1.9%. The energy infrastructure and cleantech sectors also fell by around 1.7%, and the biomed index weakened by 1.3%. The dual-share index also weighed on the market, dropping 1.2%. Conversely, the foreign income-producing real estate index bucked the negative trend, rising 1.3%, followed by the communications index up 1.1% and the software index up 0.8%.
Weekly performance saw a mixed trend. The TA-35 index closed the week down 1.4%, and the broader TA-125 index lost 0.6%. The TA-90 index, however, surged 2.2% for the week. Weekly sector leaders in decline were technology (-1.9%) and dual shares (-1.6%). On the upside, real estate and construction sectors saw significant gains, with the TA-Building index jumping 4.6% and the TA-Real Estate index strengthening by 1.5%. Software and communications also had strong weeks, rising 2.6% and 2.4% respectively.
In corporate news, FIMI fund, managed by Yishai Davidi, submitted a NIS 200 million offer for a 50% stake in robotics manufacturer Maytronics. Separately, the energy market was active as Dalia Power Station, a partner in which is MEshak Energy, approached the International Court of Arbitration in London to enforce a gas purchase agreement from the Leviathan field, valued at $6.7 billion. This follows an announcement by NewMed and Ratio partnerships to cancel the agreement, citing unmet conditions. Additionally, Super Power (part of Electra and Enlight Energy) acquired competitor Paz Gas Energy for up to NIS 25 million, reducing the number of private electricity suppliers from seven to six.
The local foreign exchange market saw the US dollar weaken against the shekel, with the continuous dollar rate dropping 0.15% to trade around 3.1055 shekels. The dollar fluctuated during trading hours, reaching a high of 3.1161 shekels and a low of 3.0998 shekels.
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