Market players see election having no effect on TASE

Published date22 June 2022
Publication titleGlobes (Rishon LeZion, Israel)
The immediate answer from market veterans is that the frequent election campaigns, and political developments in general, have no direct effect on trading on the Tel Aviv Stock Exchange, which responds to entirely different events, such as the upsets on overseas markets, and significant economic developments, such as the inflation rate and interest rate decisions

Gilad Altshuler, joint CEO of investment house Altshuler Shaham, sees no effect whatsoever on the stock market from election campaigns. "Happily, it's not the government that leads the Israeli economy," Altshuler says. "Woe betide us if it was the government, it would be a catastrophe. We have a very strong and very talented nation here. Thanks to the people, the economy here is strong. Elections or not, it has no significance for the economy. Nothing. Zero.

"We've had four elections in a couple of years. The technology industry works, and as long as we have children, 'go forth and multiply and fill the earth', the economy is strong. Talented Israelis make money all over the world, and the high-tech world is aware of that story," Altshuler adds. "After the election," he says, "it looks as though there will be no surprises, whether Bibi comes back or not. So I think that the election campaign is of no significance for the Israeli capital market."

Altshuler is not alone. Economists and market players tend to agree that the connection between elections and stock market performance is weak, to the point of non-existence. One of those who believes that it's hard to find any effect of the political drama on the financial markets is Bank Leumi fixed income analyst David Reznik. "Since elections in Israel are something that has become a fixture in the work plan, I don't think that they get people on the capital market excited anymore.

"The alternatives are clear to the public: it's back to Netanyahu, or more of the same. From an economic point of view, there aren't any very different choices. What we are seeing today is a very positive trend, but that is in comparison with the rest of the world, and has no connection to what's happening as far as elections are concerned," Reznik says.

A dissenting voice, however, is...

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