Wed: TASE elects to go down

Fears over the future took their toll on the Tel Aviv Stock Exchange (TASE) today which closed down as a result. The Tel Aviv 25 Index fell 1.82% to 821.93 points; the Tel Aviv 100 Index lost 1.83% to 844.90 points while the Tel Tech Index ended the day down 0.32% at 434.90 points. Turnover totaled NIS 1.748 billion.

Trading on the TASE was conducted against the backdrop of the final election results which came through in the early hours of the morning. The market saw relatively sharp falls with the leading indices trading negatively throughout the day, under the influence of both the financial reports by the big banks and developments yesterday in the US economy. Over on the foreign currency market, the shekel weakened slightly against the dollar, closing just above the NIS 4.70/$ mark, while the bond market traded lower.

The big banks held center stage today after reporting, as expected, record performances for 2005. But their results failed to impress foreign investors who preferred to sell their shares. At the close of trading Bank Hapoalim (LSE: BKHD; TASE: POLI) lost 2% while Bank Leumi (TASE: LUMI) dipped 4.1%. Israel Discount Bank (TASE: DSCT), which reported as expected a quarterly loss due to expenses related to the employee retirement package, gave up 4.7% while the banking index closed down 3.1%.

Elsewhere, Israel Chemicals (TASE: CHIM) shed 3.1% after posting good results but still clouded in uncertainty over the outcome of the potash deal in China. Delek Group Ltd. (TASE: DLEKG) also shed 2.7% after posting a positive report as expected. Ormat Industries (TASE: ORMT) lost 3.1% after it posted it results and reported that its US subsidiary was planned to raise an additional $140 million in financing.

Of the big companies, Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) continued to take top slot, adding 3.2% while Granite Hacarmel Investments (TASE: GRNT) leapt 9.1% after it announced the entry of a new partner in place of Glencore, at a value of $300 million, reflecting a premium of 60% on its value at the start of trading. Elspec Engineering (TASE:ELSPC) slumped 29.7% following the news that Siemens cut its orders while bulletproof vest manufacturer Rabintex Industries (TASE: RABN) shed 8.8% after it reported lower profit and revenue for 2005.

Published by Globes [online], Israel business news - www.globes.co.il - on March 29, 2006

Wed: TASE elects to go down

Major banks held center stage today after reporting record results for 2005. But they, too, closed down after share sell offs by foreign investors who refused to take the election results in their stride.