Israeli equities underperform as judicial reform proposes to hang over markets and economic outlook.
Israeli stocks, as defined by the BlueStar® Israel Global Index (BIGI®), gained juse 0.68% in the first quarter of 2023, significantly underperforming U.S. and international developed market equities.
Israeli technology stocks, as defined by the BlueStar® Israel Global Technology Index (BIGITech®), gained 5.14% in Q1, outpacing the broader Israeli equity market but underperformance U.S. and global tech peers by more than 15%.
The Bank of Israel raised its policy interest rate in February by another 0.50% to 4.25%. The Bank of Israel has now raised rates by a full percentage point in 2023 to date.
The Israeli economy, which entered 2023 on a strong note, boasting lower inflation, higher growth, and a notable fiscal surplus, is outpacing other developed nations.
Proposed reforms to the power of Israel’s judiciary have made their mark on Israel’s equity markets as domestically oriented stocks dramatically underperformed their globally oriented peers in Q1, by a wide margin of 17.69%.
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- 1. Highlights
- 2. Equity Market Performance
- 3. Economic and Political Update
- 4. Israeli Economic Exposure Indexes
The BlueStar Israel Global Index (BIGI or BLS & BLSTR INDEX on Bloomberg) is the broadest and deepest benchmark for Israeli equities trading. BIGI is tracked by an NYSE-listed ETF, as well as an Israel-domiciled index fund.
The BlueStar Israel Global Technology Index (BIGITech or BGTH & BGTHTR INDEX on Bloomberg) is the broadest and deepest benchmark tracking the performance of Israeli companies operating in innovative sectors such as information technology, defense technology, clean technology, and biotechnology. BIGITech is tracked by an NYSE-listed ETF. In addition, there are two Israel-domiciled investment vehicles tracking BIGITech managed by KSM.
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The information herein represents the opinion of the author(s), but not necessarily those of ETFMG or MarketVector Indexes. The information contained herein has been obtained from sources believed to be reliable but is not guaranteed. Not intended to be a forecast of future events, a guarantee of future results, or investment advice.
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