Adani Ports stock drops on Haifa port worries over Israel conflict

Adani Ports stock drops on Haifa port worries over Israel conflict

Shares of billionaire Gautam Adani’s Adani Ports And Economic Zone fell as much as 3.6% on Monday, as investors grew wary over possible escalation of a conflict in Israel, where the company owns a major port.

Adani operates the Haifa Port in northern Israel along with a local company after it completed its purchase for 4 billion shekels ($1.03 billion) in January.

Investor worries come as Palestinian Islamist group Hamas on Saturday launched the largest military assault on Israel in decades, killing hundreds of Israelis.

Shares of Adani Ports are down 2.1% this year, compared with nearly 8% gains in the broader Nifty 50 index.

“The next couple of months are going to be volatile for Adani Ports as the war has just started and will trade with a negative bias … Besides, it is not just Israel and Iran, but commodity prices will also get impacted,” said Avinash Gorakshakar, head of research at Profitmart Securities.

Haifa is a significant trading hub on the Mediterranean, located north of the present conflict zone.

Adani, the founder and chairman of the group, had said in January that the group would continue to invest in Israel.

Adani did not immediately respond to Reuters’ request for comment on the potential impact on operations in Israel.

Earlier in the year, Adani Ports completed the sale of its port in sanction-hit Myanmar for $30 million, significantly lower than its investment in the project.

Meanwhile, the shares of other listed Adani Group stocks were down 1%-4% on Monday.