Elections and the Stock Exchange: How the Stock Market Reacted to Results Over the Years

We examined the performance of the TA-125 index around election campaigns since 2009: what happened on the first trading day after elections, in the month following them, and in the year after. The data shows significant volatility, from sharp declines to double-digit gains, against the backdrop of events such as the COVID-19 crisis and the judicial reform.

The article examines the performance of the TA-125 index around Knesset election campaigns since 2009, focusing on the first trading day after elections, the month following them, and the year after. The examination was conducted against the backdrop of upcoming elections in about two months and the lack of economic reference in party platforms. The data shows significant volatility: from a 2.5% drop on the day after the 2009 elections and an annual increase of 62%, through slight increases in 2013 and 2015, to a 0.2% drop on the day after the 2022 elections and a 130% increase in the four years thereafter, against the backdrop of the controversy surrounding the judicial reform and the COVID-19 crisis.