I carry shares of ELBIT, an electronic weapons factory, with an order book of 20 billion US$. The company is profitable and pays off dividends of 40% of the profits. Yet its stock has lost some 15% lately, which is very bad. The cause of its recent loss of value is caused by large investors selling Elbit - they want to avoid being identified with Israeli armament enterprise. This problem will not be solved for a while.
ICL, the Israeli potash company, has also lost a lot lately. I do know the reason, although world fertilizer prices have been falling. Prices of phosphate and potash have retreated since the back half of 2022 from their peak levels attained in the first half riding on the impacts of the Russia-Ukraine war and disruptions due to the sanctions in Belarus. Lower prices are expected to weigh on the company’s sales and profitability in the near term. The problem with the Houties who have closed the port of Eilat may be affecting ICL.
In general, TASE bourse is maintaining its level and not sinking. Israel's economy has not collapsed because of civil disturbances and the war in Gaza, but it is growing. Paradoxically, in 2024 total economic activity (GNP) is rising. Many working men are in the Army, Palestinian workers are not allowed in Israel, and foreign workers have left because of the war, so it is not clear what is happening.
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