Tel Aviv's TA-35 stock index falls 2%, most in 2 months

Tel Aviv's TA-35 stock index falls 2%, most in 2 months

The Tel Aviv Stock Exchange (TASE) experienced a significant decline on Monday, with the TA-35 index falling 2% to 2,091.6 points [1]. This marked the largest drop for the index in the past two months. The broader TA-125 index also followed suit, closing 2.1% higher at 2,406.76 points.

The trading day began amid heightened geopolitical tensions, with Israel launching a pre-emptive strike against Hezbollah in Lebanon, preventing a potential rocket barrage against strategic targets in Israel [2]. The attack resulted in hundreds of rockets and drones being fired at Israel, leading to retaliatory strikes from the Israeli military [2]. Although Israel's foreign minister stated that the country did not seek a full-scale war, Prime Minister Benjamin Netanyahu warned that "this is not the end of the story" [2].

In addition to geopolitical tensions, expectations of US interest rate cuts also contributed to the share gains. Economist Yuval Tzuk from the bourse's research department noted that "share gains were also helped by growing expectations of US interest rate cuts" [2].

Despite the decline on Monday, the TA-35 index still managed to end the week ahead, with a 0.7% increase for the week [3]. Year-to-date, the index is up 27.6%. Bank Hapoalim led trading today, with a 0.21% rise [3].

References:
[1] MarketScreener. (n.d.). Israel TA-35 Index (ISRAEL-TA-35) Stock Market Index Quote. Retrieved August 25, 2024, from https://www.marketscreener.com/quote/index/ISRAEL-TA-35-39464295/
[2] JPost. (2024, August 25). Key Tel Aviv share indices closed about 2% higher on Sunday. Retrieved August 25, 2024, from https://www.jpost.com/israel-news/article-816275
[3] Globes. (2024, August 25). Thu-TA-35 falls but ends week ahead. Retrieved August 25, 2024, from https://en.globes.co.il/en/article-Thu-TA-35-falls-but-ends-week-ahead-1001497983