Investors in Tel Aviv are responding for the first time today to the start of ground operations.
Share prices on the Tel Aviv Stock Exchange are falling sharply as investors give their first reaction to the Israeli ground operation in the Gaza Strip. Despite the rises on Wall Street on Friday, in the local market people are concerned at the deepening of Operation Protective Edge and the entry of ground forces into the Gaza Strip, which was stepped up last night. The Tel Aviv 25 Index is currently 1.11% off, and has dipped below the 1,400 points level, to 1,389.69 points. Bezeq, Bank Leumi, Bank Hapoalim, and Tower Semiconductor are leading the declines, although today's most heavily traded stock so far, Teva, is actually up by more than 2%.
Stock markets analysts have largely been sending calming messages recently, saying that Operation Protective Edge should not affect the stock market, but warned that a protracted ground campaign could have an adverse effect. The operation is now in its thirteenth day; the previous IDF ground operation in the Gaza Strip lasted 23 days.
TASE picture: Bloomberg