Following sharp declines after the Knesset passed a bill curbing the reasonableness clause on Monday, The Tel Aviv Stock Exchange saw some stock prices rise. The TA-35 index is up by approximately 1.7%, TA-125 by about 1.3%, TA-Banks by around 2.6%, and TA-Oil&Gas also rises by approximately 1.7%.
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The shekel also started the day strong, with its value gaining about half a percentage point against the dollar and the euro, before dropping once again, trading at around 3.71 NIS and the euro at 4.1 NIS.
The stock market results came amid concerns expressed by banks and rating agencies over the effects of the judicial reform on Israel's economy.
The international credit rating agency "Moody's" published a special report on Monday, to its investors, warning of risks brought on by the political and social unrest prompted by the judicial legislation that could have negative implications for Israel's economy and security. In April, Moody's downgraded Israel's credit rating forecast from "positive" to "stable."
In the report, Moody's wrote that some of the previous warnings regarding the impact of the proposed reform on Israel's economy have already started to materialize: Investments in Israeli high-tech companies have started to decline, and the sector raised only $3.7 billion in the first half of the year, the lowest amount since 2019.