Israel stocks closed lower on June 2, with the TA 35 index down 0.15%. The best performers were Israel Chemicals Ltd, Amot Investments Ltd, and Ormat Technologies. The worst performers were Melisron Ltd, NICE Ltd, and Nova. Crude oil and gold futures also experienced declines. The USD/ILS and EUR/ILS exchange rates increased. The US Dollar Index Futures decreased. Rising stocks slightly outnumbered declining ones on the Tel Aviv Stock Exchange.
Israel stocks closed higher on May 26, with the TA 35 index up 0.03%. The best performers were Delek Group, which rose 3.51%, and Tower Semiconductor Ltd, which added 1.92%. Bezeq Israeli Telecommunication Corp Ltd was up 0.88%. The worst performers were Strauss Group, which fell 6.45%, Harel declined 1.54%, and Shikun & Binui was down 1.40%. Falling stocks outnumbered advancing ones on the Tel Aviv Stock Exchange. Crude oil for July delivery was up 0.94% to $77.80 a barrel, and Brent oil for delivery in August rose 0.92%. The USD/ILS exchange rate was up 0.51% to 3.68, and the EUR/ILS exchange rate rose 0.55%.
Israel's shekel is expected to continue trading around NIS 3.7/$ in the coming three months, according to Goldman Sachs. However, the US investment bank sees the shekel strengthening and appreciating to NIS 3.55/$ over the next year, with a continuing appreciation through until 2027. Goldman Sachs also predicts that the Bank of Israel will cut the interest rate from 4.5% to 4.25%. The recent appreciation of the shekel is attributed to the market's assessment that Israel's economy will rebound in Q1 2024, gains of US tech stocks, and an improved export-import trade balance. Previous geopolitical crises in Israel have also led to an influx of funds, increasing pressures for the appreciation of the shekel. Despite this, Israel's high risk premium will continue to be priced into the shekel's exchange rate.
Israeli stocks experienced a significant drop on August 4, amid concerns over the threat posed by Iran and Hezbollah. The Tel Aviv Stock Exchange's benchmark index, the TA-35, fell by 3.4%. This decline comes after Israeli Prime Minister Naftali Bennett warned of the growing danger from Iran and its proxies. Bennett called on the international community to take action against Iran's nuclear program. The Israeli government has accused Iran of being behind recent attacks on Israeli-linked ships in the Gulf of Oman. The tensions between Israel and Iran have raised concerns about a potential military conflict in the region. [c94b1cd5]