JERUSALEM, Oct. 28 (Xinhua) -- Tel Aviv stocks fell sharply on Wednesday as partial election results showed Israeli Prime Minister Benjamin Netanyahu's bloc leading but falling short of a clear parliamentary majority, raising uncertainty over the formation of the next government.
The Tel Aviv Stock Exchange's benchmark TA-35 index, tracking 35 leading companies, closed down 1.81 percent, while the broader TA-125 index fell 2.46 percent.
The TA-90 index, tracking 90 companies outside the TA-35 index, plunged 4.47 percent, while the TA-Banks-5 index, tracking Israel's five major banks, fell 4.85 percent. Losses had been even steeper at points during the trading session.
Gad Lior, a senior analyst at the Israeli daily Yedioth Ahronoth, said the sell-off was driven by political uncertainty and concerns that another Netanyahu-led government might again struggle to address economic challenges, particularly the high cost of living.
He added that fears of a renewed war with Iran also weighed on investor sentiment.
Meanwhile, the Israeli shekel weakened against major world currencies, falling 1.62 percent against the U.S. dollar to 3.128 shekels per dollar, according to official exchange rates issued by the Bank of Israel.
Joseph Freiman, CEO of Israeli financial group Prico, told Xinhua that shifting election results had reversed the shekel's earlier gains.
He explained that most projections during the election day favored the opposition bloc, led by former military chief Gadi Eisenkot. However, as vote counting progressed, Netanyahu's bloc gradually took the lead, triggering a reversal in currency market sentiment.
With over 85 percent of votes counted, Netanyahu's bloc led with 53 seats, compared with 48 for the opposition bloc. However, Netanyahu remained well short of the 61 seats needed to secure a majority in the 120-member parliament and form a new government.
