The Tel Aviv Stock Exchange (TASE) closed up today. The Tel Aviv 25 Index added 0.86% to 1,094.11 points; the Tel Aviv 100 Index added 0.55% to 1,087.42 points, while the Tel Tech Index added 0.31% to 405.33 points. Turnover totaled NIS 2.063 billion.
The TASE recorded gains today, against the backdrop of the change in trend on global markets and yet more positive macro indicators on the local economy. The leading indices traded in positive territory throughout the day, despite negative pressure from real estate stocks. On the foreign currency market the shekel-dollar rate reached an eight and half year low, while on the bond market the slightly positive trend in shekel denominated bonds continued.
Bank stocks continued to stand out today thanks to the support from local analysts who feel that the banks are traded at attractive levels. Bank Hapoalim (LSE: BKHD; TASE: POLI) added 3.1% while Bank Leumi (TASE: LUMI) advanced 2.2%. Their gains sent the Banking Index up 2.4%, a gain that had a positive effect on the market. The Banking Index has gained 9% since the beginning of 2007, 8% of which was in last week alone, although the return still amounts to only half of that generated by the Tel Aviv 25 Index since the beginning of the year
In the real estate sector Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) lost a further 4.9% on profit taking today, a fall that helped send the TA Real Estate 15 Index down 1%. The falls in Africa-Israel over recent days look like natural profit taking on the phenomenal gain the company made last week, and on a more practical level, it appears that this is also a response to the fairly lukewarm start to trading in shares of its subsidiary AFI Development, which floated in London and which has already shed 9%. Africa-Israel itself has shed 10.6% in value this week, after it was within a hair's breadth of a market cap of $7 billion, as Bank Hapoalim reclaimed from it the title of third largest company on the TASE.
Elsewhere, Israel Chemicals (TASE: CHIM) stood out, gaining 3.3% after analysts at UBS upped their target price to NIS 37 (a premium of almost 20%), on the basis of the bullish phosphate markets, which together with skyrocketing potash prices are likely to send Israel Chemical's profits soaring by 70% this year. Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) closed flat amid further speculation in the foreign press over the outcome of the bidding for Merck KgaA's generics division.
Makhteshim Agan Industries Ltd. (TASE: MAIN) added 1.5% ahead of the publication of its first quarter report tomorrow, while NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) lost 2.5% on profit taking after it unveiled a positive report for the first quarter of 2007.
Published by Globes [online], Israel business news - www.globes.co.il - on May 9, 2007
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