Speedy COVID vaccine rollout brings global investors to Israeli stocks
Investors are betting that Israel's impressive vaccination efforts will make the country a front-runner in economic recovery following the coronavirus pandemic.
By EVE YOUNGMen walking near screens showing falling stocks at the Tel Aviv Stock Exchange, in the center of Tel Aviv, December 23, 2018.(photo credit: MIRIAM ALSTER/FLASH90)
Israel's coronavirus inoculation campaign is injecting more than just vaccinations into arms, as projections of a vaccine-enabled economic recovery are sending investors into Israeli markets, The Wall Street Journal reported on Friday.Global investors' typical portfolio allocation include only small amounts for Israeli stocks, but Israel's impressive vaccination campaign has drawn attention globally, according to the WSJ.Israel's TA-125 stock index gained nearly 6% in dollar terms this year, outperforming both the S&P 500 and the Euro Stoxx Index, as investors bet that the speedy vaccine rollout will make Israel a front-runner in economic recovery following the coronavirus pandemic, according to the newspaper.Israel's two millionth vaccine was administered Thursday evening and over 196,707 Israelis have received both doses as of Friday morning, the Health Ministry reported. The country expanded its vaccination campaign this week, as the ministry announced that Israelis as young as 45 will be able to start getting inoculated starting next week.Israel's goal is to reach around five million Israelis vaccinated with both doses by the end of March.In the past few days, Prime Minister Benjamin Netanyahu has been holding discussions on an easing of Israel's lockdown, including regarding how and when to debut the green passport program, which would give those who have been vaccinated exemptions from certain coronavirus regulations, enabling many to return to business as usual and further opening the economy.The Bank of Israel, Israel's central bank, projected that Israel's gross domestic product (GDP) will rise 6.3% in 2021, after an expected contraction of 3.7% in 2020 due to the success of the vaccination campaign, according to the WSJ.The coronavirus pandemic and ensuing lockdowns have had large impacts on global markets. Average daily trading on the Tel Aviv Stock Exchange was especially volatile when the coronavirus outbreak started last March and reached NIS 2.9 billion, while from May through December it was NIS 1.7b.Despite the challenges of the coronavirus pandemic, TASE said in December that despite this, 2020 was a “peak year” with significant increases in daily trading volume and IPO activity.Zev Stub and Maayan Jaffe-Hoffman contributed to this report.
