Israeli Markets Calm Despite Turbulence Abroad

The Tel Aviv Stock Exchange. (Miriam Alster/Flash90)
The Tel Aviv Stock Exchange. (Miriam Alster/Flash90)

Israeli markets remained calm despite the attempted coup in Turkey and the terror attack in France over the weekend, Globes reported.

” The effect of the violent weekend on the Israeli market will be minor, if any,” according to Leumi Capital Markets derivatives manager Daniel Rapoport.

“I see no substantial effect on the Israeli market, which is mainly being affected by the under-performance of pharmaceuticals stocks. It should be borne in mind that we are in the summer months, and so I do not expect high volatility,” he said.

“The French part of the violence at the weekend began on Thursday night, and there was trading in both Europe and the U.S. on Friday,” Rapoport continued, “The market reacted moderately, and it seems that the incident in France has passed without causing shocks. The Turkish part began on Friday night, and the immediate reaction was a 5 percent drop in the value of the Turkish lira. In the end, Erdogan regained control of the situation, and I therefore estimate that the lira will recover as soon as trading restarts.

Rapoport named Teva, Perrigo and Opko Health as the culprits in the under-performance of the Tel Aviv 25 Index. He noted that Teva is at a challenging point, due to raise $20-25 billion this week. Perrigo is still rebounding from the shakeup in its senior management echelon. Only Mylan has performed reasonably well.

“The effect on us will not be substantial,” Rapoport concludes, “The Tel Aviv Stock Exchange did well last week, so we think there could be a rebound, but on the whole the Israeli market should perform reasonably well, and so our recommendation remains the same: to stay with exposure to the stock market, certainly for as long as the interest rate environment remains low.”

Meanwhile, temporary disruptions in airline flights from Israel to Turkey were noted.

A spokesman for the Israel Aviation Authority told The Jerusalem Post that several flights were cancelled as a result of the coup attempt. By 6 p.m. on Sunday, however, regular flights resumed