Israeli shares are rising to record after Trump unveiled the Gaza plan

Israeli shares rose to a record high and cemented their fifth consecutive quarterly rally, as investors bet that a 20-point plan agreed by Prime Minister Benjamin Netanyahu and US President Donald Trump could make the end of the Gaza’s end faster. The Tel Aviv Stock Exchange 35 index climbed 2.8%on Tuesday, the largest advance in the world. The profits were led by Teva Pharmaceutical Industries, Phoenix Financial Ltd. and Bank Hapoalim, which indicates a broad-rally. Six out of seven shares on the benchmark rose, and the trading volumes were 46% higher than the 100-day average. Investors have been loading on Israeli shares since April as a weak dollar and US policy uncertainty has led money managers to diversify into global assets, including equities for emerging markets. The country’s broad mix of shares that stretch about technology, defense equipment and financial services have helped utilize interest in those sectors. Along the way, Israeli assets challenged a series of escalations in the Gaza War. “If the war ends and geopolitical arrangements are achieved, it will have enormous economic implications for fiscal and monetary policy, with regard to sovereign debt ratings and the appeal to foreign investors,” says Yaniv Pagot, head of trade for indices and derivatives on the Tel Aviv stock exchange. “The current rally still does not reflect the potential folded in a positive geopolitical scenario.” Trump’s plan to end the war was developed without the direct involvement of Hamas. It sets an ultimatum for the group to release hostages, give up weapons and surrender – or get the full power of the Israeli army with our support. It also contains an offer of amnesty to Hamas operatives that hand over their weapons and commit them to coexistence. Hamas said it would have to study the proposal. Israel’s share benchmark has so far jumped 47% in dollar terms, the 11th best achievement in 90 ominous national indices detected by Bloomberg. “Anything that can bring the war to an end is positive for Israeli asset prices,” said Hasnain Malik, the head of em -equity and geopolitics strategy at Tellimer. “The big questions about this peace plan are whether Hamas will accept that amounts to an ultimatum to surrender and whether the ultra-Orthodox parties in Netanyahu’s coalition will accept that they can interpret as the first steps to a two-state solution.” While shares reflect the investor optimism about the Trump plan, Israel’s currency decreased on Tuesday, after a rally it was on Monday to a three-year high. However, the nation’s bonds joined Tuesday’s profits after the open of the London market. According to a Bloomberg index, four Israeli bonds were one of the 20 best performers in emerging markets. Investors are now drawing their attention to the potential for interest rate cuts in Israel – subject to progress on a ceasefire. The Bank of Israel has maintained its base rate at 4.5% since January 2024, as war -related spending, which was on average about $ 90 million a day in early September. An end of the war will open space for policy reduction, said Michel Nies, strategist at Citigroup Inc.. “The demands on fiscal and human resources may be alleviated, which lowers supply restrictions in the economy,” Nies wrote in a note. “It can eventually support potential production and reduce the need for limiting monetary policy.” © 2025 Bloomberg MP This article was generated from an automatic news agency feed without edits to text.