Israel's stock market opened with a downward trend on Monday amid concerns of an Iranian attack and after the fall in Asian markets.
The TA-35 index dropped by over 2.8%, and the TA-125 index fell by 2.7%.
On Sunday the market saw a steep decline. The TA-35 index dropped by 2.5%, and the TA-125 index fell by 2.4%. Bank indices decreased by 1.6%. The TA Technology index plunged by 3.7% as semiconductor stocks dragged it down – Nova and Camtek plunged by 11% after falling by 8.6% in New York on Friday. Tower dropped by 5.4%. Priortech, Camtek's parent company, fell by 9.8%.
The shekel also continued to weaken on Monday against the euro, up by 1.5% trading at 4.2 shekel, and against the dollar up by 0.3% trading at 3.83 shekel after it too weakened amid poor economic results published late last week. The shekel has lost 5% of its value in just 10 days.
Analysts project a significant attack from Iran and its proxies that would compel Israel to respond and could broaden the war, which would certainly cause the currency to cross the 4-shekel-to-one-dollar mark, and could even bring the exchange rate to 4.30 shekel to a dollar.
If the pending attack is delayed, the markets could adjust as exporters and producers pay off their employees and suppliers in local currency.