Tel Aviv Stocks Rally on US Renewable Energy Hopes as Banks Finance Soreq Project
Tel Aviv renewable energy shares surged following expectations that US Democratic congressional control will boost the sector. Meanwhile, major banks agreed to finance the Soreq power station.
Tel Aviv Stock Exchange opened with sharp rallies in renewable energy stocks following market assumptions that Democratic control in the US Congress will benefit the sector. Enlight Renewable Energy surged 8%, Ormat Technologies climbed 6.7%, and Doral Group jumped 6.5%, driving the TA Renewable Energy index up by 4.3% and the Cleantech index by 4%. The market movement reflects investor expectations that potential political shifts in Washington could revitalize green energy initiatives previously rolled back by US President Donald Trump.
At the same time, broader market sentiment remains cautious amid negative global trends, with Nasdaq futures falling 2% and the S&P 500 down 1.2%. Tokyo's stock exchange plummeted 4.8% due to a sharp decline in technology and semiconductor shares, a trend expected to impact local chipmakers such as Nova, Camtek, and Tower Semiconductor. Meanwhile, the shekel weakened slightly, trading near 3.18 per US dollar.
In major domestic corporate developments, Mizrahi-Tefahot and Israel Discount Bank are set to finance the construction of the Soreq power station with a 5 billion shekel package. The facility is being developed by Adaltac, led by Uri Adelsburg, and Menora Mivtachim, with Keystone Investment Fund potentially joining later. Additionally, Elco is preparing to sell its 61% controlling stake in Supergas Power, selecting Phoenix Underwriting to manage the structured sale process aimed at reducing financial leverage.
