Tel Aviv Stock Exchange. Photo: depositphotos
According to israelinfo, despite the intensification of airstrikes in northern Israel, investors are not reacting with mass sell-offs. Today marks the third consecutive day of gains on the Tel Aviv Stock Exchange. Although indices dipped at the onset of the new phase of conflict, they quickly began to recover.
By the morning, the TA-35 index increased by 1.24%, the TA-125 by 1.51%, the index of the five leading banks rose by 1.53%, and the TA-Nadlan index (real estate) surged by nearly 3%.
There is also a notable revival in the securities market: state 10-year bonds increased by 0.3%.
On the currency market, there is no sign of panic; on the contrary, after trading began on Tuesday, the dollar fell by 0.34%, from 3.79 to 3.75 shekels. The euro traded at 4.22 shekels in the morning but dropped to 4.19 shekels by midday.
Analysts suggest that all these trends could change with a ground operation by the IDF in Lebanon. In an interview with The Marker, one analyst, the director of the investment group Prico specializing in forex, stated that an Israeli ground incursion into Lebanese territory could lead to a sharp devaluation of the shekel. In such a scenario, the dollar could spike to 3.9 shekels. This situation may coincide with the end of the month and the third quarter, prompting many companies and funds to invest in foreign markets to offset losses from shekel devaluation.
Currency rates in Israel are heavily influenced by the actions of “mosadim,” or large funds such as pension and insurance companies that invest capital abroad.
