Although trading in New York closed last Friday with a positive trend, the declines in the Tel Aviv stock market worsened: the Tel Aviv 35 index and the Tel Aviv 125 index plunged to almost 2% towards the end of the trading day at four o'clock.
And in the shadow of the bankers' warnings at the meeting with Netanyahu on Friday - the bank index falls by 3.8%.
Yonatan Katz, the chief economist of "Leader Capital Markets", explained in a conversation with "Israel Hayom" that "the declines in today's markets, including bank stocks, are mainly due to growing uncertainty from the effect of the reform in the legal system on capital movements, foreign investments, and therefore also on the growth potential of the economy It is possible that the escalation in the level of violence in the region also supported the decline."
We note that the local stock market has been characterized for many years by a high correlation with the stock indices in the USA, which since last Wednesday has been disconnected in the shadow of political uncertainty and the legal revolution.
"You can't ignore the people of the economy"
Let's recall that last Friday, Prime Minister Netanyahu met with senior officials of the economy, including two CEOs of the major banks - Poalim and Discount and the chairman of the board of Bank Leumi.
The CEO of Bank Hapoalim, Dov Kotler, stated that in the last day or two, the bank has seen a withdrawal of deposits in the order of a few million - not necessarily from the high-tech sector. It was also said that in recent days, foreign banks and foreign investors have been selling State of Israel bonds and selling shekels, and that the spread between US and Israeli bonds has opened significantly and the shekel has weakened.
The CEO of Discount Bank, Uri Levin, who came to demonstrate last night in Tel Aviv against the reform, told Netanyahu that: "You cannot ignore all the people in the economy who express such great concern about the moves, and therefore you must stop immediately and promote changes only with caution and broad consensus.
Maybe we're wrong and you're right, but the price of your mistake could be fatal damage to democracy and the economy."
Today (Sunday) there is no foreign exchange trading, and last Friday the dollar rose by 1.2% against the shekel to 3.44, and the euro strengthened by almost a percent against the shekel to 3.7370.
were we wrong
We will fix it!
If you found an error in the article, we would appreciate it if you shared it with us