Full story: https://grafa.com/insights/investment-what-s-happening-to-israeli-based-asx-stocks--284804

There’s a whole bunch of Israeli tech, defence, biotech and medtech stocks listed on the ASX.

So, how do investors feel about the impact of the Middle East conflict on these ASX-listed Israeli stocks?

The geopolitical tensions have undoubtedly heightened market volatility.

The CBOE Volatility Index (CBOE:VIX) jumped 18% over the last month to levels not seen since Hamas’ attack on Israel in October, indicating a surge in investor anxiety.

This uncertainty is likely to affect Israeli stocks on the ASX, as investors reassess risk in the region.

Many Israeli companies listed on the ASX are in the technology and innovation sectors.

These firms, while not directly involved in the conflict, may face challenges due to the broader economic implications of prolonged instability in the region.

Technology and cybersecurity

Companies like Elsight (ASX:ELS) which specialise in secure communication technologies, might see increased interest due to heightened global security concerns.

However, they could also face operational challenges if the conflict escalates.

Meanwhile, the 2023 ASX stock darling Weebit Nano (ASX:WBT) has seen its share price slump almost 35% over the past six months.

Biotech and healthcare

Firms such as Argent Biopharma (ASX:RGT) and HeraMED (ASX:HMD) may experience volatility as investors weigh the potential disruptions to research and development activities against the sector’s typically defensive nature during times of crisis.

Potential opportunities

Despite the risks, some investors may view this period as an opportunity.

Israeli companies have a reputation for resilience and innovation, often thriving under pressure.

The current situation could lead to increased government and private sector investment in defence and cybersecurity technologies, potentially benefiting companies in these sectors.

As the situation in Israel continues to evolve, investors in Israeli ASX-listed stocks should remain vigilant but not panicked.

The coming weeks will be critical in determining whether this conflict will have lasting effects on these companies, or if it will prove to be another example of the Israeli tech sector’s renowned resilience.