The Tel Aviv Stock Exchange index of the most active companies fell by more than 0.6% in early trading on Tuesday, against the backdrop of Israel’s announcement of the start of a specific ground operation in southern Lebanon.
According to data from the Tel Aviv Stock Exchange, the TASE 35 index, which includes the 35 most active companies, declined by 0.64%, declining from its historical peak of 2,108 points.
During the past few days, the index ignored Israel’s announcement of the assassination of the Secretary-General of the Lebanese Hezbollah, Hassan Nasrallah, and the expansion of the conflict with Lebanon, in the worst tension since the 2006 war.
A few days ago, Moody’s lowered Israel’s credit rating by two notches at once, and maintained its negative rating outlook due to “geopolitical risks” resulting from the escalation of the conflict with Hezbollah and the prediction of a long-term war.
The agency decided to downgrade the rating from “A2” to “BAA1,” which is its second downgrade of Israel’s rating this year.
Moody’s said at the time in a statement, “The main motivation behind downgrading the rating is our belief that geopolitical risks have worsened significantly to very high levels, which portends material negative consequences for Israel’s creditworthiness in the near and long term.”
Moody’s Israeli decision was described as an “economic blow” to Israel.
Fitch also lowered its credit rating for Israel last month, and maintained its negative rating outlook.
Last February, Moody’s lowered its credit rating for Israel, attributing this to the war on the Gaza Strip and its repercussions. The agency also expected the debt burden in Israel to rise above expectations before the war on Gaza.
The Israeli army said on Tuesday that the 98th Military Division began directed and specific activities in southern Lebanon, the day after a night of anticipation for an imminent Israeli ground invasion of Lebanese territory.
Since last September 23, Israel has launched the most violent and widespread attack on Lebanon since the beginning of the confrontations with Hezbollah about a year ago, resulting as of this morning at least 1,073 martyrs, including children and women, and 2,955 wounded, according to data from the Lebanese authorities, and amid fears. From the outbreak of a regional war.
