Wednesday, July 15, 2009

Update - Tel Aviv Stock Exchange

. Wednesday, July 15, 2009

By stockOzone team

Propelled by the positive momentum on world markets, Tel Aviv stocks gained ground yesterday. All the leading indices ended in the green: The benchmark TA-25 index gained 0.8% to 858 points, and the broader TA-100 index gained 1.4% to 796 points. The Tel-Tech 15 index, fueled by dual-listed stocks, powered ahead 2.7%.

But total turnover was thin at NIS 1.4 billion.

The consumer price index for June is set to be published today, and economists are predicting a 0.4% increase, driven in part by rising fuel costs and excise tax on fuel.

As for stocks, Israel Chemicals shares gained 3.1% and its parent company Israel Corporation advanced 3%, after several days of sharp drops for both.

The Real Estate-15 index gained 4% yesterday, bringing its gain over two days to 5.5%. Even so, from the start of July, the index is down 7%. Delek Real Estate gained 1.5%, building on its 4.6% gain the day before, after chief executive Ilik Rozanski announced his resignation. Investors seem unconcerned.

Also prominent in the real estate pack was Kardan NV, which leaped 7%, while Lev Leviev's holding company Africa Israel gained 2.1%., lifting its market capitalization to NIS 3.2 billion.

Elbit Imaging gained 6.7% on the announcement that its subsidiary Insightec successfully completed the first stage of a Swiss study on using the Israeli company's technology to treat neuropathic pain, by "operating" on the brain non-invasively using ultrasound equipment.

Shares of Koor Industries gained 2.2% as the holding company gears up to buy more shares in Credit Suisse. Koor, a member of Nochi Dankner's IDB group, owns 1.73% of the Swiss bank's stock and is borrowing 330 million Swiss francs from a Citigroup bank to buy more.

Makhteshim-Agan, another IDB group company, lost 1%.

The Banks-5 index was flat yesterday after its 3.5% gain Sunday. The banks' performance was mixed: Leumi gained nearly 1% but Hapoalim retreated by 0.6%. Mizrahi-Tefahot fell 2.1%.

Moving on to hotels: Isrotel's owners, David and Bernard Louis, plan to delist the company and are offering NIS 11 per share. That's a premium of 8% above Isrotel's opening share price yesterday.

The snag is that Isrotel is one of the least liquid shares on the Tel Aviv Stock Exchange and even their munificent offer left investors clammy: not one transaction was recorded in the stock.

Disclosure: Author does not own any of the stocks discussed here.

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