Adani Ports Reports: Haifa Port Update Amid Israel-Hamas Conflict; Stock Up 3%

Business View
5 Min Read

Amid the Ukraine-Russia war, the world is witnessing another ongoing war between Israel and Hamas. We are all familiar with the fact that wars affect many sectors in other countries as well. Most of the time, the effects are on the negative side, but it looks like Adani Ports is making a profit from it. As we all know, the surprise attack by Hamas created war tensions between Israel and Palestine. As of now, hundreds of people have lost their lives, and many are being abducted by Hamas, who are planning to use this hostage in exchange for the freedom of Palestinian prisoners.

Moreover, due to this war, a stir has occurred in the stock market. According to the reports, the conflict between Israel and Palestine may drive investors away from risky assets. However, Adani Ports shares updates on Haifa Port and states that their stock has risen around 3%. The report states that Adani Ports was closely watching the action on the ground, which was concentrated in South Israel. As per Adani Group, they are taking all safety measures to ensure the safety of their employees who are currently working there. Speaking about the Adani shares, the reports state that in Tuesday’s trade, the shares of Adani Ports rose 3%.

These shares came fore after a day plunging 5% after the Adani Group company made it clear that the current situation in Israel is concentrated in South Israel, whereas the Haifa port, which was obtained for $1.2 billion at the beginning of this year, As noted, Adani managed the Haifa Port in northern Israel alone with a local company. In January, Adani Group completed its purchase of 4 billion shekels ($1.03 billion). This port is one of the main seaports in Israel. In this seaport, around 99% of all goods are exported and imported by sea. In terms of shipping containers, this port is the second-largest port in Israel.

The clarification of Adani came as investors were worried over investments, even as the overall contribution of Haifa to Adani Port’s number is quite small at 3% of the total cargo volume. Apart from that, investors were worried that if Iran is pulled into the war, there is a high chance it may disrupt trade in the Strait of Hormuz. Speaking about Adani Ports stock, it has risen by 3.38% to hit a high of Rs 816.65 on Bombay Stock Exchange Limited. The port of Haifa is a multi-cargo port situated in North Israel, and it has around 10 terminals.

Speaking about the measures taken by the firm, the spokesperson of Adani Group states, “Our firms are closely watching the action going on the ground, which is concentrated in South Israel. The Haifa Port is located in northern Israel. We have taken measures to ensure the safety of our employees, and we are glad to say that all of them are safe. We remain entirely prepared as well as alert with a business continuity plan that will enable us to respond effectively to any eventuality.”

On Monday, October 9, the Indian stock markets remained resilient in the context of the Israel-Palestine conflict without watching any panic sell-offs. According to the reports, shares of Sun Pharma are likely to bear down as its subsidiary, “Taro Pharmaceuticals,” is a company based in Israel. As per Taro Pharma, the terrorist acts could cause disruptions in their business. Moreover, other pharmaceutical companies like Torrent, Lupin, and Dr. Reddy Pharma also have a liability to Israel as a consequence of their exports. As of now, we have this many details, but we will surely be back with more updates on the ongoing war. Till then, stay connected with us.

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