TEL AVIV (Jul. 13)
A sharp decline of prices on the Tel Aviv Stock Exchange, precipitated by political uncertainty, was halted Wednesday by speculators snapping up bargains.
The market fell by about 10 percent over the previous three days because of fears that the unity coalition government might collapse.
But the drop was not as much as could have been anticipated, and investors welcomed Wednesday’s 2 to 3 percent upturn.
The market became nervous after the Labor Party Executive recommended Monday an end of Labor’s alliance with Likud, which it accused of wrecking the government’s peace initiative.
Labor is unhappy with the new, restrictive conditions imposed on the peace plan by Likud hard-liners at the party’s July 6 Central Committee meeting.
Labor’s own Central Committee is expected to vote on the recommendation sometime next month.