•Israeli stocks, as defined by the BlueStar® Israel Global Index (BIGI®), gained just 0.68% in the first quarter of 2023, significantly underperforming US and international developed market equities.
•Israeli technology stocks, as defined by the BlueStar® Israel Global Technology Index (BIGITech®), gained 5.14% in Q1, outpacing the broader Israeli equity market but underperforming US and Global tech peers by more than 15%.
•The Bank of Israel raised its policy interest rate in February by another 0.50% to 4.25%. The Bank of Israel has now raised rates by a full percentage point in 2023 to date.
•The Israeli economy, which entered 2023 on a strong note, boasting lower inflation, higher growth, and a notable fiscal surplus, outpacing other developed nations.
•Proposed reforms to the power of Israel’s judiciary have made their mark on Israel’s equity markets as domestically-oriented stocks dramatically underperformed their globally-oriented peers in Q1, by a wide margin of 17.69%.