Israeli shares were still dropping in Wednesday morning trade, with the benchmark TA-25 falling 1.1% to 787.5 - extending the previous session's losses.
Africa Israel was the largest percentage decliner, down 2.82%, while Teva Pharmaceutical Industries was also lower after the drug company said it would halt sales of generic Biaxin pending a court ruling.
Investment house Clal Finance Batucha cautioned clients about a drop in the market, citing lower global indices as well as security concerns surrounding the army's overnight incursion into Gaza.
The TA-25 is now at its lowest level since February 26, and has fallen nearly 13% from its all-time high on May 17.
