Tel Aviv share indices opened higher on Sunday after a massive attack by the Hezbollah terror group was relatively contained by a preemptive strike by the Israel Defense Forces.
The blue-chip Tel Aviv 35 index, TA-35, was up 0.77 percent while the benchmark TA-125 index rose 0.76%.
The TA-90 index, which tracks the shares with the highest market capitalization not included in the TA-35 index, was up 0.64%.
“The markets are looking ahead and are optimistic that no escalation is expected up north after this round, and they are especially optimistic about the chances for a ceasefire with the development of negotiations,” Leader Capital Markets’ head economist, Yonatan Katz, explained to Channel 12 news.
“The stock markets opened the business week in Israel with nice increases in the leading indices. It seems the reason is the reaction to the Israeli Air Force’s success against Hezbollah’s intention to attack the center [of the country],” Ilit Peleg, manager of the Kali Group’s premium clients told the channel.
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She added that this week was “expected to be dynamic because of the security uncertainty following Hezbollah’s announcement that this was just the first stage of its attack against Israel and because of the estimates that Iran may also attack.”
The beach in Haifa after it was closed down due to the security situation, August 25, 2024 (Chaim Goldberg/Flash90)
The IDF said it had staved off an attack from Hezbollah which would have seen the terrorist organization launch a massive volley of rockets and drones at Israel’s center and north early on Sunday morning. In an overnight coordinated strike, some 100 Israel Air Force planes struck thousands of Hezbollah targets in Lebanon.
Still, Hezbollah launched some 320 rockets and drones at Israel’s north in what it said was the first stage of its retaliation for Israel’s killing of military commander Fuad Shukr, at the end of last month.
A few hours after Shukr’s assassination, Hamas leader Ismail Haniyeh was killed in an explosion in Tehran that Israel has not taken responsibility for. Regardless, Iran blamed Israel and vowed to retaliate in an attack Israel is still bracing for.
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