Trading on the Tel Aviv Stock Exchange moved lower on Sunday after reports of an anti-tank strike in the north that led to the injury of six civilian employees of the Israel Electric Corporation, one of them in critical condition.
The Tel Aviv 35 Index, which recorded a slight increase at the opening of trading, is currently falling by 1.6 percent, and the Tel Aviv 125 Index is declining by 1.4 percent.
Documentation: The scene of the anti-tank fire at Dubav // Photo: Safed operations room
A short time ago, the Israel Electric Corporation reported that anti-tank fire hit IEC employees while they were working, in coordination with security forces, in the area of Moshav Dubav to repair power lines damaged by previous fire, which supply electricity to farms and vital compounds in the area.
Ronen Menachem, Chief Market Economist at Mizrahi Tefahot: "We are witnessing a sharp change and a transition to declines on the Tel Aviv Stock Exchange. The negative turn came against the background of the security escalation in the north this afternoon – Hezbollah firing anti-tank missiles at civilians and seriously wounding them. The organization also claimed responsibility for the act."
Menachem added, "This follows Nasrallah's speech yesterday and his statements about integrating missiles with heavy warheads and drones into the campaign. Various security experts already believe that this is the beginning of a real war, and against this background it is worth mentioning the statement made by the defense minister, but yesterday that we know how to do in Beirut what we are doing in Gaza and the prime minister's warning to the secretary general of Hezbollah."
IDF strikes in Lebanon, Photo: AP
Nasrallah speaking from the bunker, photo: Arab networks
Menachem explains that "any development that could lead to escalation – extensive IDF reactions and Hezbollah backlash – raises the likelihood of a two-front campaign or more whose implications for the economy and the capital markets should be more severe than a scenario of war on the southern front alone, which will end by the end of the year, as assumed, for example, by the Bank of Israel. The Governor repeated this last weekend in his appearance at an IMF conference."
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