By madmin 
Today highly troubled security situation in the region and the respective global economic uncertainty on the occasion stand for the TA-125 index decline of as much as 1.79% down to 1,997.00 points. The aforementioned slump is the outcome of the broad-based market sell-off as opposed to the TA-35, which, a 1.63% decrease to 1,982.53 points, was registered as one of the scripts of such activity.
Personal concerns, on the other hand, were motivated by reports of a suspected terror bombing near Tel Aviv, where three buses had exploded. However, there were no casualties as the buses were empty at the time of the incident, so the event has come to pass with no serious repercussions, and hence, the market sentiment has not been affected. The analogous data for the TASE VIX VTA35 was 4.96%, which scared to 16.08; that reveals from this that the positions of investors were very stimulated and they were in a state of anxiety.
Few sectors actually showed rather unsatisfied performance, as the defense industry was one of the exceptions. The level of defense equipment producers was found in the meantime by some of them to be promising. Additionally, the broader market was faring relatively better than expected as Elbit Systems reigned the market in the aerospace and defense segment doing better than the rest. This reflects a complex two-sided fit in economic political standpoint in Israel under the threat of the possibility of geopolitical conflict.
At a time when the Israeli stock market was soaring again, the TA Growth index, which represents one of the key sectors of the market, suffered a 1.18% drop to 1,582.27 points. The issue is more like a local concern on the one hand and on the other reflecting the current situation on the global front especially the technology sector where the stock market is adjusting its valuations due to inevitable consequences of the changing conditions of an economy.
Real estate, which is another important sector of the Israeli economy, presented a mixed picture. On the one hand, some big names such as Azrieli Group recorded profit; on the other hand, the overall attitude of those in the market was still cautious. The ongoing conflict has led to many uncertainties about property values in the short-term, especially in the areas that are perceived as being more vulnerable to potential security threats.
The financial sector, which includes companies such as Israel Discount Bank, also felt a downward pressure from the market. Shares of banks, which are often used as the indicators for the general economic situation, used the opportunity to reexamine their plans since they were affected by the potential prolonged instability in the region on Israel’s credit markets and economic growth.
Foreign investors do have a significant share in the Israeli market, and their reactions seemed to reflect a more cautious one. The volatility in the geopolitical situation called for grave threats to the economy affecting both the domestic fund managers and the international fund managers who worried that the capital inflows could be affected in the short term.
Even in such a difficult period, Israel and its prospects are up-to-date and situation stability is guaranteed by most analysts. Israel is the variety of the economy, the implant of key technologies, and the originator of the original business culture, which could be the factors to blame for the difficulties and point to the market recovery once the tensions ease.
The government and the regulators are monitoring the situation closely. The Bank of Israel has once again shown its main goal, which is to keep the financial market running stably. It has also stated that it is prepared to intervene should the need arise and the liquidity table of the market become unbalanced.
In addition to these developments, the market will carefully watch over upcoming economic data and corporate earnings reports, and the outcome of them might serve as the basis for the inclusion of these variables in GDP and external tension in 2021.