not everywhere· Economy· Updated 28 Oct, 20:24

Tel Aviv Stocks Fall, Shekel Weakens as Election Results Create Uncertainty

Israeli stocks fell sharply on Wednesday after election results failed to produce a clear governing majority. The Tel Aviv Stock Exchange opened lower as investors reacted to uncertainty over coalition talks and the possibility of another election.

6 newsrooms · 3 languages · since 28 Oct, 10:36

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Tel Aviv Stocks Fall, Shekel Weakens as Election Results Create Uncertainty — Illustration by baba

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What happened

01The Tel Aviv Stock Exchange fell on Wednesday, the first trading day after the Knesset elections, as investors reacted to uncertainty over the next government.
02NEWSru Israel said preliminary counts gave Netanyahu’s bloc 54 seats, Eisenkot’s bloc 48 and the Arab parties 18, leaving no bloc with a majority.
03The Times of Israel said the TA-125 index fell 2.5% and the shekel weakened 2.2% against the dollar as markets reversed earlier gains.
04Davar reported the TA-125 down 3%, TA Banks down 4.4% and TA Insurance down 6% in morning trading.
05Insurance, real estate and banking shares led the declines, with sector losses reaching more than 4% in several cases.
06Haaretz and TheMarker said investor optimism turned to pessimism after election results failed to produce a clear winner.
07The Times of Israel said another election is likely if no coalition majority is formed, while coalition talks may drag on for months.

By mid-morning, the TA-35 and TA-125 were down, while insurance, real estate and banking shares led the decline. The Times of Israel said the TA-125 fell 2.5% and the shekel weakened 2.2% against the dollar, while Davar reported the TA-125 down 3%, TA Banks 4.4% and TA Insurance 6%.

NEWSru Israel said preliminary counts gave Netanyahu’s bloc 54 seats, Eisenkot’s bloc 48 and the Arab parties 18, with no bloc reaching a majority. That uncertainty was the main driver of the selloff, with investors reversing earlier expectations for a government change.

Haaretz and TheMarker said the market had turned from optimism to pessimism after polls had briefly favored the “change bloc,” and both said uncertainty could last at least six months. The Times of Israel said another election is likely if no coalition majority is formed.

Summarized by baba from the reports of 6 newsrooms. Updated 28 Oct, 23:02