In the wake of the political turmoil in Israel, Swiss Bank UBS has dropped its rating for the local capital market from "overweight" to "neutral."
"The political situation has clouded the prospects of Israel's economic policy," economists at the Bank stated in a report.
"Despite the positive evaluations of the Israeli market, we must drop the rating to "neutral," the report read.
UBS's survey of developing markets includes China, India, Poland, Hungary, Israel, Russia, South Africa and Turkey.
India and Israel were the only two countries to drop on the bank's scale.
Notably, at the end of September the Swiss bank published a positive recommendation for the Israeli stock market, in which it stated that "the local market has a potential for 15 percent rise in share value in the coming years, and its low fluctuation level contributes to its attractiveness."
The bank further estimated that "the economic and geopolitical environment support a continued positive trend in the Israeli market."
However, Prime Minister Ariel Sharon's last moves and the shockwaves that have shaken the political arena in the country, affected UBS's predictions as well.
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