Israel-Iran war: TA 35 index of Israel stock market near 52-week high despite reports of ceasefire violation by Iran

Israel-Iran war: TA 35 index of Israel stock market inches near 52-week high on Tuesday, June 24, after US President Donald Trump calls for a ceasefire. However, reports revealed that Israel's defence minister has ordered an attack on Iran after a ceasefire violation by Iran.

The benchmark TA-125 index climbed 1.6 per cent, while the TA-35 index, which tracks leading blue-chip companies, advanced 1.9 per cent. Sector-wise, the TA-Construction index gained 1.8 per cent, the TA-Real Estate index surged 2 per cent, and the TA-Banks index recorded a strong jump of 3.7 per cent.

Shares climbed about 3.2 per cent over the past week following strikes by Israel and the US on Iranian nuclear and military sites.

On Monday, The broad Tel Aviv 125 index opened 0.70 per cent down at 2,853.07, snapping five days gaining streak. Last week on Sunday, the Israeli stocks hit fresh record high after U.S. airstrikes targeted Iran's nuclear facilities, with investors expecting the strikes to hinder Tehran's progress toward developing nuclear weapons in the short term.

What's driving the rally in Israel stock market?

According to market experts, the recent attacks have increased Israeli investor confidence, with many expecting the country to move into a more stable phase, particularly regarding security. Financial markets in Israel are now reflecting expectations of a significant decline in threats from neighboring countries.

The TA-125, Israel's benchmark stock index, has been on an upward trajectory since the Iran-Israel conflict began on June 13, gaining 5 per cent during this period. Overall, the index has risen nearly 8 per cent in June so far, building on a 6.55 per cent increase in May and a 4.53 per cent gain in April.

Since the war began on June 13, the Tel Aviv 125 index has delivered stronger performance than most global markets.

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