Today, the Israeli Stock Exchange witnessed a sharp decline that extended to most of the economic sectors, as the Tel Aviv index decreased by 1.7%, amid a large -scale sale wave that affected all fields, according to the Israeli newspaper Calcalist.
This decrease comes amid the escalation of concerns about the impact of new American economic policies, which included the imposition of high customs duties on imports from Mexico, Canada and China, and this led to the fluctuation of global markets and the increase in economic pressure on Israel.
Increasing pressure
This decline comes amid a general deterioration in the global economic environment, as US President Donald Trump’s commercial policies have escalated fears of global economic slowdown.
The Israeli markets were not immune to these unrest, as the negative impact was directly reflected in large companies, banks, energy sectors and technology, and this led to a decrease in investor confidence and the high wave of liquidation on the stock exchange.
https://www.youtube.com/watch?v=h_uiimgczas
A widespread decline in the economic sectors
The stock markets in Israel were greatly affected as a result of sharp declines in the energy, technology, real estate, and manufacturing industries.
The most prominent registered declines today:
- Energy Sector: The oil and gas index witnessed a 3%decrease, as the Delik Group shares decreased by 2.8%, and Neumide for energy decreased by 1.8%, while Navitas Petroleum recorded a loss of 4.2%, and Tamar Petroleum decreased by 2.6%.
- Technology Sector: Nova shares decreased by 7%, while Kamk decreased by 5%, which reflects investor fears of the impact of customs tariffs on the Israeli technological industry.
- Chemical Industries Sector: ICL, a leader in the field of chemicals and minerals, witnessed a 5%decrease, while the shares of Israel Holding Company fell by 4.2%.
- Banking Sector: The banking sector recorded a different performance, as Laomi Bank showed a slight increase by 0.6% after announcing record profits, while the shares of Hapoalim Bank declined as a result of continuous economic pressures.
Customs duties and the economy of Israel
With the entry into force of the new American customs duties, global markets were subjected to severe pressure, directly reflected on the Israeli market. The Trump administration has imposed 25% customs definitions on imports from Canada and Mexico, which prompted these two countries to respond similarly, and this has increased the severity of global trade tensions.
This was accompanied by the increase in the value of the US dollar against the shekel, as it reached 3.61 demons, and this constituted additional pressure on the local market, and led to the high costs of import and the decline in the purchasing power of consumers.
With the continued global and local economic pressures, investor confidence in the Israeli market decreased, as the trading volume today reached 1.5 billion shekels (about 414 million dollars). Hapoalim Bank came at the top of trading at a value of 152 million shekels (about 42 million dollars), followed by a der bank with 122 million shekels (about 33.8 million dollars), while Albit Systems recorded trades of 59 million shekels (about 16.4 million dollars).
https://www.youtube.com/watch?v=arcn5jfgi4
The continued economic slowdown
It appears that the Israeli markets are coming to a period of difficult challenges, as expectations indicate that the impact of global trade tensions on the performance of the local economy.
Financial analysts warn that continued trade tensions, high import costs, and increasing borrowing costs due to high interest policies may lead to a further decline in the markets, and this imposes additional pressure on companies and consumers.
