OPC Energy Wins Major Electricity Supply Tender as Tel Aviv Stock Exchange Opens Higher

OPC Energy secured a significant victory in the Israeli Electricity Authority's second tender for private electricity suppliers, winning an allocation of 200 megawatts (MW), which represents 40% of the 500 MW offered. This is the largest share among six winners, including Dalia Energies (100 MW), Adltec (80 MW), Innova Energy (55 MW), Mekorot Water Company (40 MW), and Cellcom Energy (25 MW). This allocation will enable these suppliers to add new business and household customers to the competitive electricity supply market starting next month.

In related energy sector news, Nofar is acquiring a 400 MWh energy storage project under development in the United States for $40 million. The project includes ownership of a 24-dunam industrial site with approved plans and a valid grid connection agreement. It is expected to reach readiness for construction in the upcoming quarter, with commercial operation anticipated by the end of 2028. Nofar projects net revenues exceeding $300 million over 15 years and an EBITDA of $36 to $38 million in the first operational year.

Ahead of the Tel Aviv Stock Exchange opening, global markets showed mixed signals: Wall Street indices rose modestly, while semiconductor stocks fell sharply. The Dow Jones increased by 0.3%, S&P 500 by 0.4%, and Nasdaq by 0.6%, despite an 8% drop in Micron and Sandisk shares. Oil prices declined slightly. On the TASE, shares of semiconductor companies Tower, Camtek, and Nova dropped between 2.5% and 4%.

On the security front, the United States conducted its fifth consecutive night of airstrikes in Iran, aiming to degrade Iran's military capabilities to threaten shipping in the Strait of Hormuz.

Investors are reacting to Israel's June inflation data released after market close, showing no monthly change (versus an expected 0.1% decrease) and an annual inflation decline to 1.6% from 1.9% in May. The local real estate sector is responding to sales data indicating a 1% drop in housing prices between April and May, marking the steepest two-month decline in about eight years, with a 2% annual decrease compared to the same period last year.

The Tel Aviv Stock Exchange closed strongly in green, led by banking stocks. The TA-35 index rose 2.7%, TA-125 increased 2.6%, and the banking index surged 5.2%. Shares of Mizrahi Tefahot climbed 5.6%, Bank Leumi and Discount Bank rose 5.5%, Bank Hapoalim increased 4.7%, and Bank International gained 4.5%.