Missiles in the Middle East have not only hurt infrastructure and psychology. In many cases, they have “evaporated” billions in value in the region’s stock markets, painting their indices red. At the same time, a paradoxical phenomenon is being recorded: Israel’s stock market is showing remarkable resilience.

The Tel Aviv Stock Exchange (TA-125) key index TA-125 experienced a “war rally”, with gains approaching +4.5% in the early stages of the conflict and the index at historic highs in early March. The index then corrected, erasing most of its gains. However, relative to the start of the conflict, returns remain largely resilient.