Israeli Markets React to Election Uncertainty, Shekel Weakens
Translated & summarized from Calcalist by baba
Israeli markets reacted to election results and political uncertainty, with the shekel weakening against the dollar and euro. The Tel Aviv Stock Exchange reopened Monday after a holiday, while Wall Street closed mixed Sunday. TASE shareholders approved a 3.5 million shekel bonus for CEO Itay Ben-Ze'ev, contingent on his continued employment.
The story in 5 lines · by baba
- The Israeli shekel weakened significantly against the dollar and euro amid election uncertainty.
- Tel Aviv Stock Exchange reopened Monday after a holiday, reacting to election results.
- Wall Street closed mixed Sunday, with technology stocks showing strong gains.
- TASE shareholders approved a 3.5 million shekel bonus for CEO Itay Ben-Ze'ev.
- Global oil prices rose approximately 1.5%, while US Treasury yields increased.
The Tel Aviv Stock Exchange (TASE) reopened Monday following a general election day holiday, with investors reacting to preliminary results and ongoing political uncertainty. The initial market response was seen in the foreign exchange market, where the Israeli shekel experienced a significant decline against both the US dollar and the euro.
Globally, Wall Street closed mixed on Sunday, with strong gains in the technology sector, particularly in semiconductors and artificial intelligence infrastructure. The Dow Jones remained stable, the S&P 500 rose 0.6%, and the Nasdaq climbed 1.2%.
Following the holiday, TASE is expected to see arbitrage gaps, with Nice showing a negative gap of 2.5%, Enlight a positive gap of 3%, and Tower and Ormat both up 2%. Oil and gas stocks may also see activity, with global oil prices rising approximately 1.5%. US 10-year Treasury yields increased by 3 basis points to 5.02%, while Israeli 10-year government bond yields stood at 4.07%.
In corporate news, TASE shareholders approved a bonus of 3.5 million shekels for CEO Itay Ben-Ze'ev. The bonus is contingent on his remaining with the company for an additional five years and will be paid this month. However, if he leaves the exchange voluntarily within the next five years, he will be required to repay the bonus. This award is in addition to two similar bonuses he received in 2019 and 2023.
