(Bloomberg) --
Shares in Israel dropped the most in the Middle East as investors catch up with a decline in Wall Street last week while the government considers tightening restrictions amid soaring coronavirus cases.
The TA-35 declined 2.9% as of 3:49 p.m. in Tel Aviv, with Teva Pharmaceutical Industries pressuring the index the most. Israeli Prime Minister Benjamin Netanyahu said on Sunday there could be tighter restrictions following the reopening of the economy. Cases jumped by 2.7% on Saturday, the biggest daily increase since April.
Additionally, Israel's stock market is highly correlated to the U.S., where many Israeli shares are cross-listed. The S&P 500 dropped 2.4% on Friday as Texas and Florida halted drinking at bars and Arizona reported a surge in infections.
Elsewhere in the region, Saudi Arabia's Tadawul All Share Index rose 0.8% boosted by Samba Financial Group and National Commercial Bank. The banks are in talks for a merger that could create the third biggest lender in the Middle East. Shares in Abu Dhabi rose while those in Dubai and Qatar fell.
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MIDDLE EASTERN MARKETS:
- Thirty-two members of the TA-35 retreat while three trade higher
- Israeli index extends decline this year to 21%
- READ:Israel Leading Indicator Registers Sharpest Drop on Record
- MORE: Netanyahu Keeps Annexation Details Close With Key Date Near (1)
- In Riyadh, Samba gains 9.9%, the biggest increase for a session since June 2017
- MORE: Saudi Samba Shares Surge After $15.6 Billion Takeover Bid (1)
- Egypt's EGX 30 falls 0.4% even after the International Monetary Fund approved a $5.2 billion stand-by arrangement for the country, boosting its ability to tackle economic challenges posed by the coronavirus
- READ: IMF Approves $5.2 Billion Stand-By Arrangement for Egypt (1)
- Abu Dhabi's ADX General Index ends 0.4% higher while Kuwait's Premier Market index finishes unchanged. Dubai's DFM General Index Doha's QE Index drop 0.1% and 0.6%, respectively
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