Netanyahu has become the investors' nightmare
Benjamin Netanyahu promised a victory that would paint the stock exchange green, but on election day the shekel strengthened temporarily and then weakened to 3.1 shekels per dollar, the Tel Aviv 125 index fell by 2.5% and the banking index lost 4.9%. The article claims the reaction reflects a loss of investor confidence due to governmental instability and Netanyahu's statements about a crypto economy and sanctions.
Just before the elections, Benjamin Netanyahu promised that the moment he wins, the screens on the stock exchange would turn green – 'strong strong green'. However, on election day, when unusual voter turnout figures hinted at an advantage for the change bloc, the shekel strengthened sharply and approached the three-shekel-per-dollar threshold. With the publication of the actual results and it became clear that there was no decisive victory for the change bloc, the trend reversed: the Tel Aviv 125 index fell by 2.5%, the banking index lost 4.9%, government bonds declined, and the shekel weakened to 3.1 shekels per dollar. The article claims the reaction reflects a loss of investor confidence due to legal instability, governmental uncertainty, and changing rules of the game. It notes that a few days before the elections, Netanyahu began making statements about an Israeli 'crypto economy' and dealing with international sanctions, which heightened concerns. The conclusion: the market signaled to the new government that it is not buying slogans.