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Israeli Stock Market Rebounds

October 17, 1989
See Original Daily Bulletin From This Date

The Tel Aviv Stock Exchange recovered some lost ground when it opened for trading Monday morning.

Shares that had declined 7 to 10 percent in value at the closing bell Sunday rebounded Monday with 3 percent gains.

The exchange managers said there was no panic. They said investors realized that Sunday’s sharp drop was mainly a psychological reaction to the 190-point plunge on the New York Stock Exchange last Friday. In trading Monday, the New York Stock Exchange recouped about 88 of the 190 points it lost last Friday.

Nevertheless, traders here are nervous. They are keeping an eye on Wall Street, and they are even more concerned with the shaky political situation at home.

Labor-Likud differences over the peace process could bring down the coalition government. That would lead either to new elections or a narrowly based coalition headed by one of the two major parties.

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