Tel Aviv Stock Exchange Falls Amid Israeli Election Uncertainty
Translated & summarized from TheMarker by baba
The Tel Aviv Stock Exchange experienced sharp declines on Wednesday, contrasting with gains on Wall Street following US midterm elections. Chief Economist Rafi Guzlan attributed the drop to political instability in Israel following its own election results. Since the elections, major Israeli indices have fallen, with specific sectors like construction and insurance seeing double-digit percentage losses.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange closed sharply lower amid Israeli election uncertainty.
- US midterm election results initially boosted Wall Street trading.
- Rafi Guzlan cited political instability as the main cause for the TASE decline.
- TA-35 and TA-125 indices have fallen 5% since the Israeli elections.
- Construction and Insurance indices dropped 12% and 11% respectively.
While Wall Street opened with gains following the US midterm election results, the Tel Aviv Stock Exchange (TASE) closed sharply lower on Wednesday. Rafi Guzlan, Chief Economist at IBI Investment House, suggested that the primary factor impacting the TASE was political instability stemming from Israel's own election outcomes.
Despite a strong opening on Wall Street, the trading day in Tel Aviv was volatile and ended with significant declines. The TASE had started with a slight positive trend, but the negative momentum in the latter half of the day became pronounced. By the close, the TA-35 index dropped by 2%, the TA-125 index by 1.9%, and the TA-90 index similarly. Sector-specific indices also saw declines, with the Banks index down 1.4%, Insurance down 2.6%, and Real Estate down 1.8%.
Since the Israeli elections, the TA-35 and TA-125 indices have fallen by 5%. The Construction index has lost 12% and the Insurance index has dropped 11% since the elections.
