Israel Markets Rise on Election Results

Centrist gains play well

Israeli markets rose on Wednesday on investor hopes that the outcome of the previous day's election means Benjamin Netanyahu will remain prime minister and ultra-Orthodox parties have no role in government.

The blue-chip Tel Aviv 25 index rose 1 percent to 1,204.65 points, near last week's year-high of 1,225.76, while the broader TA-100 index closed 0.9 percent higher.

Government bond prices gained as much as 0.5 percent and the shekel appreciated 0.4 percent to 3.722 per dollar from Monday's fixing of 3.738, near a 10-month peak.

"We will enjoy this for a few days," said Zach Herzog, head of foreign sales at the Psagot brokerage. "The downside will be if the coalition talks drag on or if we see Labour or (ultra-Orthodox) Shas in serious talks to get involved.