The TA-35 and the broader TA-125 \u2014 which has risen 8 per cent over the period, hitting a record high after Tuesday\u2019s ceasefire \u2014 are the two best performing equity indices across Europe, the Middle East and Africa over the past month.<\/p>\n
\u201cThis is the big one, this is the big war,\u201d said Elliot Hentov, head of macro policy research at State Street Global Advisors. While a shadow war with Iran was posing a threat to Israel, the events of the last couple of weeks mean that \u201ca lot of things are de-risked,\u201d he said.<\/p>\n
\u201cAs an investor, I\u2019d think for the coming few years it means a much quieter horizon,\u201d Hentov said. <\/p>\n
Ronen Menachem, chief markets economist at Israel\u2019s Mizrahi Tefahot Bank, said that whereas \u201ceveryone was asking when Israel would attack Iran\u201d before the conflict began, \u201cthis source of uncertainty has vanished.\u201d<\/p>\n
He added: \u201cInvestors here in Israel and in external markets are expecting that the confrontation between Iran and Israel will end in a way that will eliminate the nuclear threat [to Israel].\u201d<\/p>\n
The TA-35 has returned more than 60 per cent over the past two years, despite a grinding war with Hamas and battles in Lebanon, Syria and now Iran all unfolding in that period. <\/p>\n
\u201cThe war has not impacted the fundamentals of companies in our coverage. In fact, we estimate that fundamentals have never been stronger, thanks to strong discipline and execution,\u201d said Tavy Rosner, head of Israel equities research at Barclays.<\/p>\n
\u201cThe rally seen over the past week reflects investors\u2019 belief that current events will not change the paradigm and that companies will keep on delivering,\u201d added Rosner. <\/p>\n
Financial services stocks, which count for nearly one-third of the market cap of the TA-35, jumped after the ceasefire was announced on Tuesday morning. First International Bank of Israel gained 4.4 per cent and Clal Insurance rose 6.9 per cent. <\/p>\n
Real estate companies also gained on news of a ceasefire, which Menachem said was a result of the need for rebuilding following missile damage. Builder Amot Investments rose 2.8 per cent while Ashtrom Group gained 5.8 per cent per cent. <\/p>\n
The stock market gains have accelerated in the last two weeks, since the conflict with Iran began. Menachem said that while an upwards move did not come as a surprise, the size of the move was unexpected.\u00a0<\/p>\n
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