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Israeli Markets Plummet as Election Results Create Uncertainty

The Tel Aviv Stock Exchange and the Israeli shekel fell sharply on Wednesday, October 28, 2026, following inconclusive general election results that pointed to a political deadlock. The market downturn reversed gains from earlier in the week, when investors had rallied on expectations of a potential change in government.

7 newsrooms · 3 languages · since 10:10

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What happened

01Israeli stock indices and the shekel fell sharply on Wednesday following inconclusive general election results.
02The TA-35 and TA-125 indices dropped by 2.85% and 3.3% respectively, while the TA-90 index fell by 4.6%.
03The construction sector led the market decline on the Tel Aviv Stock Exchange, plummeting by approximately 8%.
04The Israeli shekel weakened to around 3.10 per US dollar and traded above 3.43 against the euro.
05Yields on ten-year Israeli government bonds rose by about 0.06 percentage points to around 4.1%.
06Preliminary election results showed no clear majority for either political bloc, raising fears of a political deadlock.
07According to All Israel News, updated results indicating a potential majority for Benjamin Netanyahu's bloc triggered the market drop.

By mid-day trading, the TA-35 index fell by 2.85% and the TA-125 index dropped by 3.3%, while the TA-90 index weakened by 4.6%. The construction sector led the market decline, plummeting by approximately 8%, while real estate, insurance, and banking indices also suffered steep losses. The shekel depreciated to around 3.10 per US dollar, down from 3.02 during the election, and weakened against the euro to trade above 3.43.

Preliminary election results indicated no clear majority for either political bloc, raising concerns over government stability, budget approval, and the national deficit. According to All Israel News, updated results suggested a potential majority for Benjamin Netanyahu's bloc, reversing initial optimism for political change. Eldad Tamir of Tamir Fishman Investment House described the situation as a dead end, noting that foreign investors were exiting the market due to the political instability.

Summarized by baba from the reports of 7 newsrooms. Updated 17:38