The Tel Aviv Stock Exchange saw its TA-125 benchmark index fall 2.3% on Tuesday following a general election that failed to produce a clear governing majority. The broader TA-90 index also declined, closing 4.4% lower as investors reacted to the prospect of a prolonged political stalemate.
The selloff extended to the currency market, where the shekel weakened by more than 2% to trade at about 3.72 per dollar. The turmoil comes as neither major political bloc secured the 61 seats needed for a majority in the Knesset, leaving the country without a governing coalition.