Keystone and AdlTech Seek Early Loan Conversion Amid Tel Aviv Market Response to US Iran Sanctions

Keystone and AdlTech, partners in the Sorek power station alongside Menora, have requested to advance the conversion of a loan into shares immediately. According to their agreement, this conversion was originally scheduled to occur only after the power station begins commercial operations, planned for 2029. Keystone recently pushed to expedite this conversion, with AdlTech supporting the move and describing it as a positive step that would have happened eventually.

Meanwhile, the Tel Aviv Stock Exchange is set to open following a mixed session on Wall Street and in response to the US administration's new financial sanctions targeting Iran. The Dow Jones rose by 0.3%, while the S&P 500 and Nasdaq declined by 0.3% and 0.8%, respectively. Oil prices edged higher, with Brent crude up 0.4% and WTI up 0.5%. The yield on 10-year US Treasury bonds increased slightly to 4.71%, while Israel's 10-year bond yield stands at 3.86%.

The earnings season continues with notable reports expected today from Phoenix, Menora, Israel Shipyards, Electra, and Fattal. The previous day saw a negative close on the Tel Aviv Stock Exchange, with the TA-35 and TA-125 indices dropping 1.1%. Semiconductor stocks were particularly hard hit: Tower Semiconductor fell 5.3%, Nova plunged 8.1%, and Camtek dropped 7.8%. Consequently, the TA Technology index declined 3.4%, TA Technology 35 fell 3.3%, and TA Elite Tech decreased by 2.9%. The continuation index also lost ground.