Israeli stock and bond prices witnessed a plunged and many businesses were shut on Sunday, a day after militants of Hamas infiltrated the Israeli territory and killed hundreds of civilians and abducted an unknown number of others.
Key Tel Aviv share indices ended on 7% lower and the banking shares were dropped by 9%, on a turnover of 2.2 billion shekels ($573 million). The government bond prices fell as much as 3% in the market’s initial response to the bloodiest attack on Israel in decades.
While the foreign exchange market is closed on Sunday, shekel is already at its lowest for the year due to the highly contested government’s plan to overhaul the judiciary.
“The shekel will most likely weaken sharply tomorrow and we see a high probability that at some point the Bank of Israel will sell FX,” said Jonathan Katz, chief economist at Leader Capital Markets.