First outbreak of plague: declines in most shares • Tel Aviv 135 index down 2.8% • Tourism shares plunged: Fatal fell 7.3% to 6.2% • "The whole economy will be hit"

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  Corona // Photo: IP

The stock exchanges seem to have ignored Corona until last Friday, but the fatal virus is starting to affect markets in Israel and around the world.

The Tel Aviv Stock Exchange yesterday saw declines in all indices, with TA-35 plunging by 2.32%, TA-125 by 2.6%, TA banks falling by 2% and TA Real Estate erasing 3.7%. 34 shares in TA 35 declined. Tourism indices plunged noticeably, with Fattal losing 7.3% to 6.2%.

According to the Bank Hapoalim economic department's forecast, even if the corona does not spread in Israel, growth is expected to slow, as the number of tourists entering Israel is expected to decline, and some exports of goods to China and neighboring countries are at risk if production in the East is not back on track.

Over the weekend, concerns about the spread of the corona in South Korea, Iran and Italy grew, leading to declines in global stock markets. China's stock indices actually recorded increases, mainly as a result of expectations of deepening government support in the business sector and returning to activity in some regions of China.

"Even if expansion spreads, it will be difficult to compensate for the loss of income of many sectors of the economy," the workers' economic department believes.

The president of the Manufacturers Association, Ron Tomer, yesterday appealed to the prime minister because of concern about the spread of the corona in the country. "As treatment for the eradication of the virus grows, the damage to the supply chain and the economy increases, as does its impact on the entire economy," warns Tomer.

In the meantime, Arkia is preparing for the possibility of deepening the cuts in the company, and as the Sde Dov closure closes, the Corona epidemic presents another challenge. According to Arkia's chairman, Avi Hurmero, the Corona crisis is directly affecting the company's operations and will force Arkia to deepen the cuts.

Ilan Gatnio participated in the preparation of the article