Israel-Iran war: Israel stock market surges to 52-week high despite report of Iran's missile attack on exchange building

Tel Aviv Stock Exchange Defies Geopolitical Storm, Hits 52-Week High

In a stunning display of resilience, the Tel Aviv Stock Exchange (TASE) surged to a 52-week high on June 19th, despite escalating tensions with Iran and reports of a fresh missile attack targeting the exchange itself. While global markets reel from the ongoing conflict, Israeli investors continue to demonstrate unwavering confidence in the local economy.

Al Jazeera reported that the TASE building sustained damage following a reported barrage of 25 Iranian missiles. Yet, the All Share index climbed 0.5% to reach a remarkable 2,574.89. Other key indices, the TA-35 and TA-125, also hit their 52-week highs, closing at 2,810.85 and 2,850.08 respectively. This upward trend is particularly striking, with the flagship TA-125 index gaining 5% since the start of the conflict on June 13th.

• Remarkable Gains: The TA-125 index is up nearly 5% in June alone, building on a strong 6.55% increase in May and a 4.53% rise in April.
• Confirmed Attacks: AFP confirmed reports of Iranian missile strikes on Israel, including a hospital in southern Israel and towns near Tel Aviv.
• Strong Response: Prime Minister Benjamin Netanyahu vowed that Iran would "pay a heavy price," while Defence Minister Israel Katz announced intensified military action against Iran.

The seemingly paradoxical rise of the Israeli stock market stands in stark contrast to the global reaction. The ongoing conflict has sent shockwaves through international markets.

• Europe's Losses: European stocks experienced a third consecutive day of decline, with the STOXX 600 index suffering its largest weekly drop since April.
• US Markets Brace: US S&P 500 futures fell 0.6%, foreshadowing potential losses when markets reopen.
• Asia Affected: Asian markets also felt the impact, with Taiwan and Hong Kong experiencing significant declines.
• Indian Resilience: In a show of relative stability, the Indian stock market showed only minor losses.

The resilience of the Israeli stock market in the face of such intense geopolitical pressure presents a compelling case study in investor sentiment and market dynamics. While the global outlook remains uncertain, the TASE's performance offers a surprising and significant counterpoint to the prevailing pessimism.