The results of the elections on Tuesday in Israel, which did not lead to the formation of a new government and have plunged the political situation into ambiguity, have had severe impacts on the financial markets of the country. Following these elections, the Tel Aviv stock market faced a significant decline, placing Israel's economic situation in a state of uncertainty.
Decline in Tel Aviv Stock Indices
The TA-125 index of the Tel Aviv stock exchange fell by about 2.5 percent on Wednesday and sharply dropped at the start of the trading day, although some of the losses were recovered later. The TA-35 index, which includes larger stocks, also decreased by about 1.8 percent.
This downward trend continues a period of instability for Israeli stocks. While the TA-125 index has decreased by 1.78 percent in the past month and nearly 6 percent in the last six months, it still shows an increase of about 7.5 percent compared to this year and a rise of over 20 percent in the past twelve months.
Impacts on Major Companies
Meanwhile, the sale of stocks has been uneven. Leumi Bank, one of the major stocks in the market, lost about 4.6 percent of its value, putting additional pressure on the overall index. In contrast, Elbit Systems, which operates in the defense sector, initially faced a significant decline but later rose by about 1.7 percent with the arrival of buyers. Additionally, Tower Semiconductor acted completely contrary to this trend, increasing by about 6 percent.
Such fluctuations in the Israeli financial market have raised concerns about the country's economic future. Given the uncertainty in forming a government and the possibility of long and complex coalitions, investors are looking at the market with greater caution. Analysts believe that any change in the political composition of the country could have profound effects on economic policies and financial markets.
Overall, the current conditions of the Israeli stock market and the economic situation of the country are influenced by the recent election results, and it seems that as long as the political situation remains unclear, the markets will remain in a state of instability.
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