Wall Street Drop Wipes 5.1 Billion Shekels from Israeli Savings
Wall Street declines in late October and high Israeli institutional exposure to tech giants wiped an estimated 5.1 billion shekels from public savings, according to a recent market analysis.
The final two trading days of October on Wall Street and the high exposure of Israeli institutional investors to the chip sector have dealt a blow to public savings, estimated at 5.1 billion shekels. The assessment was based on 11 stocks at the center of the Wall Street declines and the scale of holdings by various institutional bodies.
The data shows that these entities held the examined stocks at a cumulative value exceeding 47 billion shekels as part of their long-, medium-, and short-term savings products, alongside insurance company portfolios, some of which include nostro investments. The calculation relies on holdings reported at the end of June, adjusted for share prices and exchange rates at the close of trading on October 28 compared to October 30.
Among the examined stocks, institutional exposure was highest in Nvidia, where holdings reached 11.16 billion shekels at the end of June. Alphabet, Google's parent company, followed with holdings of approximately 10.6 billion shekels across two share classes. Taiwanese chipmaker TSMC ranked third with holdings worth 7.54 billion shekels, followed by Amazon with about 7.4 billion shekels.
Among institutional managers, Harel Insurance & Finance and Menora Mivtachim recorded significant exposures. Menora Mivtachim held the largest exposure to the 11 companies at around 14.4 billion shekels at the end of June. The sharp declines across global tech giants once again highlight the debate surrounding the similarity of investment portfolios among Israeli institutional investors.
