The trading week at the Tel Aviv Stock Exchange began on Sunday with dipping numbers, against the backdrop of the Israeli Air Force's retaliatory strike in Yemen on Saturday following the Houthi drone attack on Friday. The Houthis threatened to retaliate with a harsh response following the IDF's claim of responsibility.
With the opening of the stock exchange, top shares dipped by 1.5 points, which later curbed losses but remained significant. The Tel Aviv 35 and Tel Aviv 125 indices dropped by 1.1%, the Tel Aviv 90 index decreased by 1%. Sharp declines were recorded in a few shares: Electra Ltd. dropped by 4 points and Perion Network Ltd. decreased by 4.5 points.
On Friday the shekel weakened after the Houthi drone attack in Tel Aviv. The dollar rose by 0.7% compared to NIS 3.66 and the euro strengthened against the shekel by 0.25% to NIS 3.98. Estimates in the foreign exchange market say that the shekel will continue to weaken tomorrow with the resumption of trading.
Meanwhile, the Finance Ministry has yet to convene additional meetings to formulate the 2025 budget amid Israel's troubling financial situation during the ongoing nine-month war. Finance officials estimate that the chances of finalizing the budget proposal in the coming weeks to be voted on in about two months are slim. Economic officials fear that failure to submit the budget on time will prompt another downgrade in Israel's credit rating that will delay the reduction of interest rates.