Active Stocks
Thu Apr 25 2024 10:37:59
  1. Kotak Mahindra Bank share price
  2. 1,662.70 -9.79%
  1. Tata Steel share price
  2. 165.50 0.00%
  1. Axis Bank share price
  2. 1,108.20 4.18%
  1. State Bank Of India share price
  2. 784.75 1.49%
  1. Power Grid Corporation Of India share price
  2. 292.65 0.72%
Business News/ News / World/  Israel-Palestine Conflict Sends Middle East Markets into Sharp Decline
BackBack

Israel-Palestine Conflict Sends Middle East Markets into Sharp Decline

Israel's main TA-35 stock index led the way with a substantial 5.2% decline, marking its most significant loss in over three years

The declining stock values are now setting the stage for a potentially unstable week. (Photo: Bloomberg)Premium
The declining stock values are now setting the stage for a potentially unstable week. (Photo: Bloomberg)

Stock markets in Israel and the Middle-East opened deep in the red, as repercussions of the unexpected assault on Israel by the Palestinian group Hamas on Saturday had a ripple effect, Bloomberg reported. The declining stock values are now setting the stage for a potentially unstable week.

Follow our LIVE coverage of the Israel-Palestine war here

On Sunday, significant stock indices in the region experienced a decrease, with Israel's main TA-35 stock index leading the way with a substantial 5.2 percent decline, marking its most significant loss in over three years. The Tadawul All Share Index in Riyadh saw a 1.2 percent drop, and stocks in Kuwait, Qatar, Oman, and Bahrain also exhibited weakness. Egypt's EGX30 gauge faced a decline of up to 2 percent.

Also Read: Slow Q2 growth for FMCG companies as food prices and rain deficit block demand

Background

The recent attacks by Hamas represent the most lethal assault on Israel in many years and pose a threat of escalating into a broader conflict. Israeli Prime Minister Benjamin Netanyahu stated that his country would initiate an extended military operation against Hamas and expressed confidence in Israel's victory. President Joe Biden assured "rock solid" support from the United States for Israel.

This conflict arises during a period of diplomatic sensitivity and a historic division within Israel concerning Netanyahu's coalition with the far-right. Their attempts to reform the nation's judiciary have created internal discord. In the midst of these developments, the Israeli shekel has declined towards a seven-year low in the days leading up to the scheduled reopening of Israel's parliament later this month.

Also Read: Petrol, diesel price hike unlikely despite crude oil price surge: Moody's

“Divisions in Israel’s politics and security structure will be papered over while the military response in Gaza is ongoing, but they are not going away. That will remain a vulnerability for all Israeli asset prices," Hasnain Malik, a Dubai-based strategist at Tellimer, a provider of research and data on emerging markets to investors, told Bloomberg.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 08 Oct 2023, 01:47 PM IST
Next Story footLogo
Recommended For You