Tel Aviv Stock Exchange Ends Week Down Amid Political Uncertainty and Tech Sell-off
The Tel Aviv Stock Exchange closed a turbulent week with major indices falling around 3% due to political uncertainty and a global tech sell-off. The Israeli Shekel weakened significantly, with the US Dollar reaching a five-month high. Institutional investors bought tech stocks while foreign investors favored biomed, and cautious investors favored money market funds.
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- Tel Aviv Stock Exchange indices fell around 3% amid political uncertainty and a tech sell-off.
- The US Dollar surged 2.44% against the Israeli Shekel, reaching NIS 3.22.
- Institutional investors net bought NIS 609 million in tech stocks, while foreign investors sold tech.
- Long-term government bonds weakened, while short-term bonds remained stable.
- Mutual funds saw inflows favoring stable money market funds over stocks and bonds.
The Tel Aviv Stock Exchange concluded a volatile trading week with significant losses, influenced by domestic political uncertainty surrounding government formation, security concerns, and a sharp sell-off in technology and chip stocks on Wall Street. The main indices, TA-35, TA-125, and TA-90, each dropped approximately 3%, while the TA-SME60 index saw a steeper decline of 4.26%. Thursday was particularly notable, with a record trading volume of NIS 19.4 billion coinciding with sharp price drops, some of which were recovered on Friday. Despite the week's downturn, the TA-35 and TA-125 indices still show positive returns of 8.53% and 4.37% respectively since the start of 2026, though the TA-90 and TA-SME60 are down over 8%.
Institutional investors took advantage of the dips, net purchasing NIS 609 million in technology stocks. In contrast, foreign investors sold NIS 632 million in tech shares but invested over NIS 1 billion in Teva Pharmaceutical Industries in the biomed sector. The Israeli Shekel also experienced a weak week against foreign currencies, with the US Dollar rising 2.44% to a representative rate of NIS 3.194, and even surpassing NIS 3.22 on Friday. This marks a roughly 14% increase for the dollar against the Shekel in just five months. The Euro and Pound Sterling also strengthened by over 2% against the Shekel, while the global dollar index saw a modest 0.3% rise.
In the government bond market, the longer end of the yield curve weakened, with the Tel-Gov Shekel 5+ index down 0.59% and the 10+ index losing 1.01%. Shorter and medium-term bonds remained stable. Investor caution was also evident in the mutual fund industry, which saw NIS 540 million in net weekly inflows, with a clear preference for stable money market funds over equity and bond funds. The debt market saw three bond issuances totaling NIS 2.36 billion, and Electra Real Estate and Y.A.Z Entrepreneurship raised approximately NIS 199 million and NIS 20.4 million respectively.
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