The trading week on the Tel Aviv Stock Exchange opened Sunday with significant declines in the leading indices, amid investor concerns over a potential constitutional crisis. The turmoil follows the government's decision to dismiss Shin Bet chief Ronen Bar, the High Court’s move to temporarily freeze the dismissal, and Prime Minister Benjamin Netanyahu’s suggestion that he may not comply with the court’s ruling.
Adding to the uncertainty are threats of a nationwide strike and escalating security tensions, following rocket fire from Yemen's Houthis, Gaza and Lebanon.
The TA-35 index dropped about 2.6%, the TA-90 fell 4%, and the TA-125 declined by 3%. The TA Banks index posted the sharpest decline, down around 5%.
The crisis began Friday after the foreign currency exchange rates were set. Subsequently, the shekel saw a sharp decline against major currencies. The dollar, which had a representative rate of 3.69 shekels on Friday, is now trading at around 3.71. The euro, which closed Friday at 4 shekels, is currently trading at about 4.01 shekels.
<< Get the Ynetnews app on your smartphone: Google Play: https://bit.ly/4eJ37pE | Apple App Store: https://bit.ly/3ZL7iNv >>
Or Poria, chairman of Poria Finance, commented on Sunday’s market opening in Tel Aviv: “Trading opened this morning in an atmosphere of uncertainty, against the backdrop of escalating security tensions in the south, the resumption of ground fighting, and developments in the area of Yemen. This is compounded by political and legal tensions following the dismissal of the Shin Bet chief — factors that are increasing perceived risk among investors.”
Despite the tense backdrop, Poria stresses that the basic economic outlook remains stable. He predicted a volatile trading session, but not necessarily steep declines. “Markets have already learned how to price emergencies, and such periods can actually present investment opportunities, especially in strong companies with a solid economic foundation,” he said.