The main indices on the Tel Aviv Stock exchange feel sharply at the opening of trading this morning, following the steep falls in New York on Friday as US investors assess the impact of the Trump administration's tariffs policy. The Tel Aviv 35 Index is currently down 3.57%, and the BlueTech Global Index is down 4.19%.
The big two banks, Leumi and Hapoalim, are leading trading, and are down 4.69% and 4.59% respectively. The Tel Aviv Insurance and Financial Services Index is down by 4.67%.
Dual-listed semiconductor-related stocks traded in both Tel Aviv and New York are the outstanding decliners. Nova is down 6.54%, Camtek is down 6.24%, and Tower Semiconductor is down by nearly 12%.
Delta Galil has corrected upwards slightly, after falling 9.37% on Thursday.
Falling oil prices have hit oil exploration partnership Navitas, which is down 8% today after falling 5.78% on Thursday. Delek Group is down 6.33%
Teva has also been hit, and is currently down 6.59%.
Tel Aviv Stock Exchange EVP and head of trading, indexes and derivatives Yaniv Pagot said this morning: "The Tel Aviv Stock Exchange is currently reacting to an external event, unlike the internal crises we have seen in the past couple of years. The impact is mainly seen in dual-listed stocks, and in a decline in investors’ appetite for risk. Anyone who thinks that this will be a prolonged event with a global recession as a consequence will choose to change his investment portfolio, but it’s important to remember that this is a matter of decisions by President Trump - who can reverse them quickly - especially in an age in which a single statement by a leader can change the direction of the markets.
"If a general trade war develops, we shall see further reactions, mainly from the European side. In the short term, we shall see rising prices, difficulty in cutting interest rates, and political pressure for continued incentives. Nevertheless, I estimate that, within a short time, we shall reach a more stable stage in which tariffs will balance out, there will be achievements for US policy, and the market will stabilize. The Israeli stock market, which mainly consists of local companies with fairly low exposure to tariffs, could even find new opportunities.
"The bottom line is that it’s important to ensure that investments are diversified, and not to make hasty moves. Despite the short-term volatility, I have no doubt that in the long term the markets will recover. The Israeli stock market is not in the eye of the storm, and the recent rally in government bonds even makes for a fall in the cost of raising debt, and is a reminder of the fact that even in a crisis there are advantages to acting with careful judgment."
Published by Globes, Israel business news - en.globes.co.il - on April 6, 2025.
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