Israel Stocks Surge on Barclays Report
The Israeli stock market surged on Wednesday, with the benchmark TA-35 index jumping the most among global peers, after Barclays Plc released a report that was seen as positive for the country’s banks.
Barclays Report Boosts Banks
The TA-35 index rose as much as 2.3%, the most since April, and closed 1.7% higher at 1,541.37. The TA-Banking index, which tracks the country’s five largest lenders, rose as much as 4.3%, the most since March, and closed 3.3% higher.
The Barclays report said that the Israeli banking sector is well-positioned to benefit from the country’s economic recovery, and that the banks’ balance sheets are strong enough to withstand any potential losses. The report also said that the banks’ profitability should improve in the coming years.
The report was seen as a positive sign for the Israeli banking sector, which has been struggling in recent years due to a weak economy and low interest rates.
Positive Outlook for Economy
The Israeli economy is expected to grow by 4.5% this year, according to the Bank of Israel. This is a significant improvement from the 1.5% growth seen in 2020, and is due to the country’s successful vaccination campaign and the easing of restrictions.
The Bank of Israel also expects the economy to continue to grow in the coming years, with growth of 4.2% in 2024 and 4.3% in 2025. This is expected to lead to an improvement in the banking sector’s profitability.
Banks’ Profitability to Improve
The Barclays report said that the Israeli banking sector is well-positioned to benefit from the country’s economic recovery, and that the banks’ balance sheets are strong enough to withstand any potential losses. The report also said that the banks’ profitability should improve in the coming years.
The report noted that the banks’ profitability has been hurt by low interest rates in recent years, but that this should improve as the economy recovers. The report also said that the banks’ balance sheets are strong enough to withstand any potential losses.
Rising Interest Rates
The Bank of Israel has been gradually raising interest rates in recent months, and is expected to continue to do so in the coming months. This is expected to lead to an improvement in the banks’ profitability, as higher interest rates will lead to higher lending rates and higher profits.
The Barclays report also noted that the banks’ balance sheets are strong enough to withstand any potential losses, and that the banks’ profitability should improve in the coming years.
Conclusion
The Israeli stock market surged on Wednesday, with the benchmark TA-35 index jumping the most among global peers, after Barclays Plc released a report that was seen as positive for the country’s banks. The report said that the Israeli banking sector is well-positioned to benefit from the country’s economic recovery, and that the banks’ balance sheets are strong enough to withstand any potential losses. The Bank of Israel has been gradually raising interest rates in recent months, and is expected to continue to do so in the coming months. This is expected to lead to an improvement in the banks’ profitability, as higher interest rates will lead to higher lending rates and higher profits.