Sharp drop in the Tel Aviv Stock Exchange following the escalation
on the northern border:
The Israeli shekel devaluted against the Euro and US dollar: The Euro rose by 1 percent and was sold at roughly NIS 5.6447; the dollar value rose by 1.071 percent and was sold at NIS 4.434.
"The effect of the geopolitical events is measurable especially in the sharp short-term volatility, but that must not be taken as portending anything for the long run," says Leonor Terkialtaub of Gift Asset Management.
She added that "Israel's macroeconomics continues to be positive and if the dollar breaks through present levels, it could move toward NIS 4.505 due to the security tensions."
'Market quick to internalize security tensions'
Uri Fishman, CEO of Or Gap Portfolio Management LTD, said that "the sharp drop in the stock market following the escalation in the north provides a buying opportunity due to low prices." In his opinion, the market is quick to react to security crises and tends to quickly correct itself.
Fishman emphasized that the moderate rise of the dollar value indicates that the foreign investors are not running away.
"It's an emotional response," he said. "Only in a day or two we will be able to know in what direction the wind blows."
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