Rise of Israeli Bank Stocks as Investors Optimistically Anticipate End of War

SadaNews - The Tel Aviv Stock Exchange indicators recorded notable increases, driven by investors' expectations of an impending ceasefire amid the escalating tensions and ongoing war with Iran.

According to SadaNews Economic Translation, the "TA 35" index (Tel Aviv Stock Exchange) rose by 1.5%, while bank stocks increased by about 2.5%, amid a state of cautious optimism in the markets.

In this context, trading closed before the "Second Passover Holiday" on gains, with the "Tel Aviv 90" index rising slightly. Meanwhile, stocks in the banking and defense sectors saw increases exceeding 2%, as reported by the Hebrew newspaper "Globes".

The sense of optimism in the markets rose with reports indicating international pressure to reach an agreement with Iran at the last minute, despite dwindling chances of achieving that within 48 hours.

According to SadaNews Economic Translation, U.S. President Donald Trump had escalated his threats toward Tehran, hinting at targeting energy facilities, while Iran rejected those threats, keeping the possibility of military escalation on the table.

In parallel with these developments, the Israeli currency (shekel) experienced an increase of about 1%, amidst estimates that the confrontation with Iran may remain limited in scope, positively reflecting on the financial markets.

According to SadaNews Economic Translation, the shekel is trading at a level of 3.13 against the dollar, compared to 3.165 last week.

In the stock market, several companies stood out in the trading session, including "Next Vision" and "Arit Industries", after announcing they had received new orders, which supported the performance of their stocks.

The share price of "Tower" also rose significantly, continuing its recent gains, driven by investor confidence in the semiconductor sector.

Conversely, estimates from global financial institutions indicate that uncertainty persists, despite the current optimism.

Goldman Sachs predicts a rise in gold prices to record levels that could reach $5,400 per ounce by the end of the year, signaling the continuation of geopolitical risks associated with the war with Iran.

Wall Street analysts also believe that the markets have already begun to price in a "post-war" phase, should a ceasefire or truce be reached. According to SadaNews Economic Translation, these estimates reflect a gradual shift in investors' outlook toward stability opportunities, despite the ongoing threats and escalation in the region.