Investors Pull Funds From Tel Aviv After Record Stock Rally
Funds are exiting Tel Aviv after record stock market gains, driven by uncertainty ahead of Israel's election and the US midterms. Analysts fear prolonged coalition talks in Israel and a divided US Congress could destabilize markets. The election outcome is pivotal: JP Morgan says an opposition win would strengthen the shekel, while a Netanyahu-led government could weaken it. Foreign fund ownership in Israeli securities has fallen to a historic low of 19%, according to Reuters. Despite the outflows, the Tel Aviv Stock Exchange has surged 130% since October 2023, outpacing Wall Street's 80% gain. Deutsche Bank notes any new government will maintain a hard line on Iran, with strategic differences over military action versus regime change.