Tel Aviv Stocks Surge and Shekel Strengthens Amid Coalition Talks
Tel Aviv stocks surged up to 5% and the shekel strengthened following positive political signals from opposition leaders Avigdor Lieberman and Yair Golan regarding coalition talks, defying sharp global market declines.
Global stock exchanges, including Wall Street and the Tel Aviv Stock Exchange, reversed a sharp downward trend on Thursday following positive statements on social media by Yisrael Beytenu leader Avigdor Lieberman and The Democrats leader Yair Golan regarding the potential formation of a new government, likely including ultra-Orthodox parties.
On the Tel Aviv Stock Exchange, the benchmark TA-125 and TA-35 indices surged by approximately 3%, while the Banking Index jumped by 3.7%. The Insurance Index climbed 5.3% and the Construction Index advanced 4.3%. Simultaneously, the Israeli shekel strengthened against both the US dollar and the euro, trading around 3.18 and 3.56 respectively.
Market Contrast Amid Global Declines
The domestic market gains contrasted sharply with ongoing downward trends across global exchanges following a turbulent session on Wall Street. The tech-heavy Nasdaq tumbled 5.5% and the S&P 500 slumped 4.3%, driven by concerns surrounding artificial intelligence investments, semiconductor valuations, and resistance to new data center projects following the US midterm elections.
Asian markets extended the global losses, with steep declines exceeding 6% recorded in Tokyo and Seoul. Analysts noted that despite the international volatility, the prospect of domestic political stability and a coalition breakthrough in Israel provided a powerful local catalyst for investor confidence and market recovery.
