Israeli Shares Rise Most Since December After Gaza Truce AgreedShoshanna Solomon
Israel’s TA-25 Index climbed the most in almost nine months a day after Hamas said it accepted an Egyptian-brokered cease-fire to end the seven-week conflict in the Gaza Strip. Government bonds gained.
The index advanced 1.4 percent to close at 1,408.54 in Tel Aviv, the biggest increase since Dec. 1. The shekel strengthened 0.1 percent to 3.5658 against the dollar at 5:55 p.m. local time, while yields on the government’s benchmark debt due March 2024 dropped 2 basis points to 2.48 percent.
“There’s a broad rally in the market on the back of the truce with Hamas,” Joel Kirsch, a trader at Psagot Investment House Ltd., said by telephone from Tel Aviv today. “The market has underperformed during the last 50 days of clashes, and has some catching up to do.”
The TA-25 Index advanced 0.7 percent between July 8, when the conflict escalated, and yesterday, when the cease-fire was announced. That compares with a 1.1 percent gain for the Standard & Poor’s 500 Index in the same period.
Delek Group Ltd. added 4.6 percent to 1,307 shekels. Migdal Insurance and Financial Holding Ltd. rose 3.6 percent to 5.49 shekels after the insurer posted increased quarterly profit.
Israel’s Monetary Policy Committee, led by central bank Governor Karnit Flug, reduced the country’s benchmark interest rate a quarter of a percentage point on Aug. 25 to 0.25 percent, a record. The unexpected cut is also helping to boost shares, Kirsh said.