Quarterly Israel Equity Review and Outlook Q4 2021

  • Israeli stocks, as defined by the BlueStar Israel Global Index® (BIGI®), dropped 0.58% in Q3 2021, underperforming developed international equities by 0.23%, as measured by MSCI EAFE. With a return of 6.25% through the first nine months of 2021, BIGI trails MSCI EAFE by 2.54% and leads MSCI EM by 7.50%, year-to-date.

  • Israeli technology stocks, as defined by the BlueStar Israel Global Technology Index™ (BIGITech®), fell 5.44% in Q3 2021, trailing the Dow Jones US Tech and S&P Global Tech indexes by 7.57% and 6.21%, respectively. BIGITech has now regressed 3.85% YTD, trailing the Dow Jones US Tech by 24.19% and the S&P Global Tech by 17.57% in 2021.

  • BIGI underperformed the TA-125 Index of Israeli-listed stocks in Q3 2021 by 7.08%. Since the start of 2021, BIGI trails the TA-125 by 11.85%.

  • On a global scale, there were 32 Israeli companies that went public during Q3 2021, bringing the total number of IPOs for the first nine months of 2021 to 107.

  • The high-tech sector continues to spearhead the IPO evolution — with 17 IPOs in Q3 alone, there have been 65 IPOs of Israeli high-tech companies in 2021, so far.

  • SPAC-mania continued for Israeli tech companies. The flurry of action in the SPAC arena during the first half of the year, especially during June, continued as 4 more deals were completed during Q3 to bring the year-to-date total to 11.

  • After two long years and four elections, a new government has been formed. In September, the Knesset began to publish budget policies for 2021 and 2022.

  • With the help of the widely distributed booster shots, Israeli Covid-19 illness rates have dropped significantly, and the country could open up to tourists as early as November 1, 2021.

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