HIGHECONOMIC
Tel Aviv Stock Exchange drops sharply — TA-125 -3.4%, Insurance -6% — long war priced in
·Tel Aviv, Israel
TASE benchmark TA-125 falls 3.4%, TA-35 -3.2%, TA-Construction -4.2%, TA-Insurance -6%. Reversal after last week's 5-8% gains as investors now price in a prolonged conflict rather than a short decisive war.
The Tel Aviv Stock Exchange fell sharply on Day 10 as oil prices soared and global markets priced in a prolonged conflict. The TA-125 benchmark index fell 3.4%. The TA-35 blue-chip index dropped 3.2%. The TA-90 (mid-cap) fell 3.6%. The TA-Construction index dived 4.2% and the TA-Insurance index fell 6%. Hadar Romano, head of research at the TASE, noted: 'Although Israel's economy is energy independent and therefore less exposed to the spike in oil and gas prices, a slowdown in global economic growth could impact local growth.' The sharp declines mark a full reversal of last week's gains. The TA-35 had climbed 5.53% last week, TA-90 by 8.68% and TA-125 by 6.25% as investors priced in a short and effective war. That assumption is now being abandoned. The insurance sector's 6% single-day drop reflects rising war damage claim exposure as Iranian strikes on Gulf states continue. Construction falls on expectations of reduced building activity during wartime disruption.
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