Tel Aviv Stock Exchange Awaits Market Reaction to Iran Tensions and Oil Price Surge
The Tel Aviv Stock Exchange (TASE) is poised to respond today to escalating tensions in Iran and sharp increases in global oil prices, following a night of declines on Wall Street. The Dow Jones fell 0.3%, the S&P 500 dropped 0.5%, and the Nasdaq declined 1.2%. The Israeli shekel is also expected to weaken slightly after yesterday's losses.
The recent escalation began after the United States revoked sanctions relief previously granted to Iran and launched a series of powerful strikes against Iranian targets. These attacks were in retaliation for Iranian assaults on three commercial vessels passing through the strategic Strait of Hormuz, as announced by the US Central Command (CENTCOM).
Oil prices have surged amid the renewed conflict, with Brent and WTI crude rising approximately 2.5% this morning, following a 5% increase yesterday after the sanctions were reinstated. This sharp rise is expected to influence local oil and gas stocks on the TASE.
Yesterday, the TASE closed lower with the TA-35 and TA-125 indices down 2%. The semiconductor and green energy sectors suffered significant losses, while banking stocks ended higher. Notably, semiconductor companies Kemetek, Nova, and Tower fell 10.4%, 8.3%, and 7.9% respectively, placing them at the bottom of the TA-35 index. In contrast, NICE rose 3.9%. Green energy firms such as Apollo Power and Econergy dropped 15.3% and 9%, respectively. Banking stocks like Bank Hapoalim and Bank Leumi gained between 1.1% and 1.9%.
In corporate news, Malam Team Holdings announced a buyout offer that will lead to the company’s delisting from the TASE. Malam Team Holdings owns 65.5% of Malam Team, whose market value stands at about 1.2 billion shekels, while the holding company itself is valued at 960 million shekels, reflecting a 20% discount relative to its net asset value.
Additionally, Rafek Energy, a subsidiary of Rafek Communications, completed its institutional funding round, raising 420 million shekels. Following the public offering, Rafek Energy is expected to begin trading at a market capitalization of approximately 1.74 billion shekels, surpassing its parent company’s valuation of 1.49 billion shekels.
