Tel Aviv Stock Exchange Plummets, Dollar Surges Post-Election
Translated & summarized from Cursorinfo by baba
The Tel Aviv Stock Exchange's TA-35 index fell 3.69% after elections, reaching a six-month low, while the dollar rose 6% against the shekel to over 3.2. The downturn began October 28, following unclear election results. Investors are reportedly withdrawing funds due to political uncertainty and market fears. The shekel has weakened by 4.5% against the dollar since the vote.
The story in 6 lines · by baba
- The TA-35 index on the Tel Aviv Stock Exchange fell 3.69% after elections.
- The U.S. dollar rose 6% against the Israeli shekel to over 3.2 shekels.
- The market downturn began October 28, following unclear election results.
- Major stock indices have fallen approximately 8% since the election.
- Investors are reportedly withdrawing funds from the stock market.
- The shekel has weakened by nearly 4.5% against the dollar.
The Tel Aviv Stock Exchange experienced a significant downturn following recent elections, with the TA-35 index dropping 3.69% in a single trading day to a six-month low. Over two trading days, the index has fallen nearly 5.6%. Concurrently, the U.S. dollar has appreciated against the Israeli shekel, rising about 6% since the vote to trade above 3.2 shekels, a level not seen since December. This negative market trend began on October 28, after it became clear that no political bloc secured the necessary 61-seat majority in the Knesset. Since then, major stock indices have declined by approximately 8%, bank stocks have seen similar losses, and construction and insurance companies have fallen by 16%. The shekel has weakened by nearly 4.5% against the dollar during the same period. In the latter half of the trading day, investment funds began processing withdrawal requests from private investors, indicating a broad exit from the stock market. Experts cited the market's already high valuation, combined with political uncertainty and fears of a crisis, as reasons for investors to lock in profits and reduce exposure. Earlier, the dollar had already reached approximately 3.171 shekels, its highest point since late March.
