Jan. 8 (Bloomberg) -- Israeli stocks and the shekel fell after rockets fired from Lebanon struck northern Israel, raising concern the conflict with Hamas in the southern Gaza Strip will expand to other borders.
Bank Leumi Le-Israel Ltd. and Bank Hapoalim Ltd., Israel’s largest banks, led the decline. Israel Chemicals Ltd., which extracts minerals from the Dead Sea to make fertilizers, dropped on a slide in commodities. The shekel lost as much as 1.3 percent against the dollar to 3.9315, the lowest in almost a month.
“Investors are wary of the possibility of an escalation and possible fighting on two fronts, which could then bring the markets further down here,” said Itamar Casif, head of capital market research at First International Bank of Israel Ltd., the country’s fifth-largest lender.
