Israeli Real Estate Stocks Plummet After Election Results

Real estate and construction stocks on the Tel Aviv Stock Exchange experienced a sharp decline on the first trading day following the recent elections. The downturn in real estate shares was more pronounced than that of the main stock indices. This market reaction appears linked to the preliminary election results, which indicate an advantage for the Netanyahu bloc. Based on market capitalization at the previous closing session, twelve real estate companies that saw the steepest drops collectively lost approximately 3.7 billion shekels in value. The real estate index fell by 6.3%, and the construction index dropped by 8.2%. Ashtrom recorded the largest monetary loss, shedding about 698 million shekels as its stock price decreased by 10.35%. Israel Canada followed, losing approximately 573 million shekels after an 11.32% stock drop. Aure, previously the largest company in the group, lost about 560 million shekels with a 10.41% decline. Africa Israel Residences experienced the sharpest percentage drop, with its stock falling 12.84% and erasing about 411 million shekels from its market value. Other companies like Rimon, Amram, Parskovsky, Nassiim VeBinyan, Hageg Real Estate, Carasso Real Estate, Rotstein, and Rotem Shani also saw significant losses, ranging from tens to hundreds of millions of shekels. Analysts note that the election results are still being finalized, and these market values could fluctuate further depending on the final government composition. It was also pointed out that the real estate index had risen about 8% in the week leading up to the elections, and the current decline is seen as a correction due to the discrepancy between pre-election polls and the actual voting outcomes.