Ahead of the market opening: Tel Aviv reversed - what to expect today?
Banking and insurance led a positive turnaround in Tel Aviv after indices fell by up to 1.5%. Matrix boosted the software sector, and Aran surged following the deal with Dedi Barnea's Ondas. In the background, high oil prices and yields are weighing on the world. What to expect today?
The trading day opened after an interesting session on the stock exchange, characterized by an impressive recovery at the close - and several specific stories worth noting.
The stock exchange showed resilience. After indices fell by up to 1.5% during the day, TA-35 and TA-125 reversed and finished with a rise of up to 0.4%, led by banks and insurance that changed the trend. Such a turnaround, from deep red to green, is usually a sign of demand entering at low levels - meaning investors see the declines as an opportunity.
The big star was Matrix, the IT company, which jumped 11.3% after strong reports - and dragged the entire software sector with it, as competitors One Technologies and Formula Systems surged in its wake.
Other stories stood out. The defense company Aran surged 8.1% after its report that Ondas is acquiring its defense activity - another deal in the hot defense sector. On the other hand, Petrochemical fell 9.2% after Michael Bobrov sold 18% of his shares at a 20% discount to the market price - a large sale at such a sharp discount usually pushes a stock down, as we saw.
In New York, the trend remains cautious, continuing the pressures that accompanied the beginning of the week. High oil prices (Brent around 90 dollars) against the backdrop of tensions with Iran, and high yields in the bond market (30-year yield at a 19-year high), continued to weigh on sentiment. Investors are waiting for two key events this week: the Fed meeting minutes to be published today (Wednesday), which may provide hints on the interest rate direction, and the reports of the major retailers (Walmart, Target, Home Depot) that will testify to the state of the American consumer.
In the background, the big wait continues - Nvidia reports on August 26, which will be examined as the central barometer of all AI trading and will dictate the direction of the chip sector, including local dual-listed companies.
The opening today depends on two forces: the positive momentum from yesterday's turnaround in Tel Aviv, against the caution on Wall Street against the backdrop of oil and yields. The Fed minutes tonight may move the markets if they provide a clearer hint on interest rate intentions in September.
For the Israeli saver, yesterday's recovery is an encouraging reminder: the local market has again demonstrated the ability to recover from declines within a day, mainly thanks to the strength in banks and insurance. The Matrix story reminds that even at the tail end of the reporting season, companies with strong results continue to reward their investors - and the Petrochemical story, on the other hand, reminds that moves by stakeholders can move a stock sharply regardless of performance. The focus remains on the end of the local reporting season and the wait for Nvidia, which will be the next big event in global markets.
