Tel Aviv Stock Exchange.Photo: depositphotos.
The elimination of Hamas leader Yahya Sinwar has led to a rapid rise on the Tel Aviv Stock Exchange. The first open trading session after the Sukkot holiday showed a significant increase in key indices and share prices of leading Israeli companies, which underscores the impact of political events on the country’s economy, the israelinfo portal reports.
Growth of the banking sector
In particular, the TA35 and TA125 indices showed an increase of 0.4% and 0.7% respectively. However, the largest rise was recorded in the banking sector, with the index of the country’s top five banks jumping by 1.8%. Leumi Bank and Mizrahi Bank were the leaders, raising the value of their shares by 2% and 2.3% respectively. Such positive developments in the market are attributed to investors’ confidence in the stability of the financial system amid the military events.
The insurance sector is also at the forefront
The insurance market also responded with significant growth. Shares of the largest insurance companies showed a sharp rise: “Migdal – by 3.5%, Harel – by 2%, Klal – by 1.8%, Menorah – by 1.5%, and Phoenix added 1.4%. The overall index of insurance companies rose by 2%, indicating investor confidence in the stability of the sector.
Leader of the gas market: Energean
Within the TA135 index, the growth leader was the gas company Energean, whose shares jumped by 4.19%. This result reflects general positive expectations in the energy market, as well as a potential reduction in the duration of military operations, which stimulates investment activity.
Foreign exchange market: strengthening of the shekel
Although trading on the currency exchange will not open until tomorrow, it is already clear that the elimination of Yahya Sinwar has had a positive impact on the Israeli shekel. The expectation of a possible reduction in the duration of the war has strengthened the national currency. The shekel dropped to 3.72 against the dollar and 4.036 against the euro. These are the lowest levels since the end of September.
Tel Aviv Stock Exchange: political threats no longer affect the market
Interestingly, the market has virtually stopped responding seriously to threats by the Israeli military and politicians about an imminent response to Iran’s rocket attack on 1 October. This suggests that investors are more focused on specific events, such as the elimination of Sinwar, than on general political statements.
