Quarterly Israel Equity Review and Outlook Q1 2022
- Israeli stocks, as measured by the BlueStar Israel Global Index® (BIGI®), climbed 4.70% in Q4 2021, outperforming developed international equities by 1.96%, as measured by MSCI EAFE. With a return of 11.25% for Full Year 2021, BIGI trailed MSCI EAFE by 0.53% and outperformed MSCI EM by 13.79%, for Full Year 2021.
- Israeli technology stocks, as defined by the BlueStar Israel Global Technology Index™ (BIGITech®), slid 4.26% during Q4 2021, trailing the Dow Jones US Tech and S&P Global Tech indexes by 14.30% and 14.31%, respectively. BIGITech tumbled 7.94% for FY 2021, lagging the Dow Jones US Tech by 45.17% and the S&P Global Tech by 37.63% in 2021.
- BIGI® underperformed the TA-125 Index of Israeli-listed stocks in Q4 2021 by 10.07%. For full year 2021, BIGI trailed the TA-125 by 24.29%.
- On a global scale, there were 14 Israeli companies that went public during Q4 2021. The total number of IPOs for full year 2021 was a record 121, including 12 SPAC acquisitions.
- The high-tech sector continues to lead the pack in IPOs. There were 9 more IPOs in Q4, bringing the total number of Israeli high-tech IPOs during all of 2021 to 75.
- MSCI is seeking feedback from market participants on whether they will still consider the MSCI Israel Index as part of the Middle East investment opportunity set in terms of index inclusion or whether it should be regionally classified elsewhere, particularly in Europe. The implications of this change would be significant for Israeli equities listed worldwide.
- The private Israeli tech sector continues to attract massive investment flows, as early, mezzanine and growth stage companies raised over $25.6 billion during 2021 — up more than 150% from 2020’s record levels.
- Israel has approved and is encouraging a fourth Covid-19 vaccine booster shot for those older than 60 as the country has started seeing an uptick in Covid-19 numbers.