TASE Sees NIS 100 Billion Inflow Since Iran Operation

Since the successful surprise attack in Iran on June 13, the Tel Aviv Stock Exchange (TASE) main indices have risen by about 7%, making the TASE one of the best performing stock markets in the world. The value of TASE companies has increased by over NIS 100 billion to around NIS 1.4 trillion. The Tel Aviv-Banks 5 Index, which includes the shares of the five largest banks, has added NIS 31 billion to its value, with the Tel Aviv Construction Index rising by about 20%. Foreign investors have been investing in banks, which are a mirror of the local economy, and real estate companies, which are expected to work on restoring war damage and promoting urban renewal projects.

The Tel Aviv Stock Exchange (TASE) has experienced a significant rally following the announcement of a bilateral ceasefire between Israel and Iran. The TASE main indices have gained about 7% since the successful surprise attack in Iran on June 13, positioning the TASE as one of the best performing stock markets globally. The value of TASE companies has increased by over NIS 100 billion, reaching around NIS 1.4 trillion [2].

The Tel Aviv-Banks 5 Index, comprising the shares of the five largest banks (Leumi, Hapoalim, Mizrahi-Tefahot, Discount, and First International), has added NIS 31 billion to its value since the start of the operation. This growth reflects the strong performance of banks, which serve as a mirror of the local economy. The Tel Aviv Construction Index has also shown notable gains, rising by about 20% and adding NIS 14 billion to its aggregate value in just a week [2].

Foreign investors have been actively participating in the market, drawn to the potential of banks and real estate companies. Real estate firms are expected to play a crucial role in restoring war damage and promoting urban renewal projects. The Tel Aviv Insurance Index has also experienced a sharp increase, jumping 18% since the start of the Iran operation [2].

The shekel has appreciated 1.5% and is trading around 3.39 against the dollar, reflecting the positive market sentiment. The local currency has gained 2.3% in the past week, contributing to the overall positive market dynamics [1].

The ceasefire announcement has had a positive impact on investor confidence, with institutional investors pouring demand into the TASE. Yaniv Pagot, TASE EVP head of trading, indices, and derivatives, noted that over 10 indices have risen by more than 10% in the past week. The Tel Aviv Technology Index, however, has shown a more modest increase of 2% since the start of the operation [2].

The strengthening of the shekel against the dollar has also influenced local investment patterns, with more investors redirecting their funds towards the TASE. This trend is expected to continue, driven by the appreciation of the shekel and the positive market performance [2].

References:

[1] https://www.timesofisrael.com/liveblog_entry/shares-on-tel-aviv-stock-exchange-rise-after-israel-iran-ceasefire-announcement/

[2] https://en.globes.co.il/en/article-nis-100b-flowed-into-tase-during-iran-operation-1001513707