The shares of Adani Ports & Special Economic Zone (APEZ) plunged nearly 2.5 percent on June 19, extending losses for the seventh consecutive session. The stock has now tumbled over 9 percent during this period, as investors remained concerned about the potential threat to its key port in Israel amid the ongoing conflict in the Middle East.
The war between Israel and Iran entered its seventh day today, with severe escalations being reported. Iranian missiles targeted key locations in central and northern Israel, triggering air raid sirens across major cities. The Israel Defence Forces (IDF) has urged the public to seek shelter and remain indoors "until further notice" as defensive operations continue.
Iranian missiles have reportedly severely damaged Israel's stock market building, hospital, state media offices and more, killing and injuring several civilians.
Adani Ports owns a majority stake in Haifa Port in Israel. The company had acquired the port for a total consideration of $1.18 billion in 2023. The port is one of Israel’s major seaports.
Iran had targeted the Haifa port and a nearby oil refinery during the weekend. However, Adani Group CFO clarified that Adani's port was not impacted by the conflict. Shrapnels fell in the chemical terminal at the port and some other projectiles fell at the oil refinery, two sources aware of the matter said. They claimed there were no injuries. A piece of interceptor shrapnel was also found at the Kishan West (Haifa port) but there were no injuries, they said. Cargo operations at the Adani-operated port were unhampered.
While the port so far remains unhampered, the rising hostilities raise investors' concerns over the possible disruption in case Iran strikes the port.
Notably, other Adani Group stocks were also facing selling pressure on June 19. Adani Total Gas and Adani Green Energy shares plunged around 4 percent each, while those of Adani Energy were down over 3 percent. Ambuja Cement, Adani Power and Adani Enterprises shares were, meanwhile, down over 2 percent each.
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