Shekel Weakens as Coalition Leads Vote; Tel Aviv Stocks Reopen
The Tel Aviv Stock Exchange reopened as coalition parties gained a strong lead in election results, driving the shekel down 1.5% against the dollar to 3.10.
The Tel Aviv Stock Exchange reopened following the election holiday as initial vote tallies indicated a significant lead for the governing coalition, which secured 55 mandates based on roughly half of the counted ballots. This political outcome drove a sharp reversal in the foreign exchange market, where the shekel weakened by approximately 1.5% against the dollar, pushing the USD/ILS exchange rate to around 3.10 shekels and erasing all gains recorded during the previous session.
Overseas exchange-traded funds tracking Israeli equities provided early indications of local market sentiment. BlackRock's iShares MSCI Israel ETF (EIS), managing roughly $884 million in assets, declined about 1.7% in extended trading. The financial sector accounts for nearly 36% of its portfolio, offering substantial exposure to domestic banks. Meanwhile, dual-listed equities are set to return from Wall Street with a modest positive arbitrage gap of about 0.2%, led by Tower Semiconductor and Enlight Renewable Energy.
Global markets maintained a positive tone, supported by strong corporate earnings and developments in the technology sector. In the United States, equity futures traded mixed as investors awaited the Federal Reserve's upcoming interest rate decision and quarterly financial reports from major technology giants. Asian markets advanced broadly, propelled by robust quarterly results from South Korean chipmaker SK Hynix, which posted record profits and announced substantial capital returns.
