The TA-25 Israeli benchmark stock index fell to the
lowest level in almost a month on concerns of an escalation of tension with Turkey.
The benchmark dropped as much as 3 percent in Tel Aviv. The measure has gained
4.9 percent in the past 12 months, the second-least among 24 developed equity
markets compiled by the Financial Times. The Nasdaq Composite Index gained 1.1 percent on
May 3. The Israeli New Shekel (ILS) plunged 2% in the last two days.
“The market is experiencing some jitters connected to
weakened geo-political events, including the recent bombings against the
Israeli embassy in Ankara, as well as the flotilla raids against humanitarian
aid workers in the Mediterranean,” Zach Herzog, head of international sales at
Psagot Investment House Ltd. in Tel Aviv, said today by phone. “Investors are
concerned that the political tension could escalate into military action, leading
to a call-up of reserves that could have economic consequences.”
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