Thu: Tel Aviv 100 falls to 900

The Tel Aviv 25 index closed below 1,000 points for the third time this week, and ended at its lowest level since March 17.

The Tel Aviv Stock Exchange (TASE) fell today. The Tel Aviv 25 Index fell 0.61% to 984.31 points, the Tel Aviv 100 Index fell 0.55% to 900.86 points, and the Tel-Tech fell 1.16% to 243.58 points. Turnover was NIS 1.57 billion.

The Tel Aviv 25 index closed below 1,000 points for the third time this week, and ended at its lowest level since March 17. The trigger for today's drops was yesterday's mixed session on Wall Street and the publication of contradictory US macroeconomic figures. Rising factory orders were offset by job losses. The TASE was also dragged down by losses on European markets as they waited for the Bank of England and European Central Bank to announce their interest rate decisions. Both banks left the interest rates unchanged: 4.25% for the Eurozone and 5% for the UK.

Today's drops at the opening on Wall Street gave the TASE its final push down

For the week, the Tel Aviv 25 Index was down 2.8% and the Tel Aviv 100 Index was down 2.3%. The Tel-Tech bucked the market, gaining 3.3% for the week thanks to a buoyant mood for technology stocks and the battle for Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT).

In the foreign currency market, the shekel continued to appreciate. The shekel-dollar exchange rate fell another 0.56% to NIS 3.582/$ and the shekel-euro exchange rate fell another 0.21% to NIS 5.185/€. The shekel-dollar exchange rate reached NIS 3.63/$ earlier in the week, but has been sliding ever since.

First International Bank dealing room manager Dror Zakash said, "There was a major battle at the NIS 3.60/$ level. The current correction could go as low as NIS 3.50/$. Nevertheless, the general trend is upwards, driven by Bank of Israel dollar purchases and the dollar's appreciation on international markets, but the climb won't be easy." He doubts that the shekel-dollar exchange rate will reach NIS 4/$.

In the stock market, Israel Chemicals Ltd. (TASE: ICL) rose 1.3% after announcing that it would buy back 5% of its shares. Parent company Israel Corp. (TASE: ILCO) fell 4% on market assessments that losses at subsidiary Zim Integrated Shipping Services Ltd. will grow.

The Real Estate 15 Index fell 0.2%, despite a 9.1% gain by Delek Real Estate Ltd. (TASE: DLKR). The share is nevertheless still 60% below its level at the beginning of the year.

Alony Hetz Property and Investments Ltd. (TASE: ALHE) fell 2.8% after Midroog Ltd. cut its rating for the company's bonds to A1/Stable citing the company's deteriorating financial standing and falling share prices for foreign subsidiaries.

Ormat Industries Ltd. (TASE: ORMT) rose 3.8%, Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) rose 1.2%.

Share drops at the food companies continued today. Strauss Group Ltd. (TASE:STRS) fell another 3.1% and Osem Investments Ltd. (TASE: OSEM) falling a further 0.6%.

Banks also had a bad day. Bank Hapoalim (TASE: POLI; LSE:80OA) fell 3.6% and Bank Leumi (TASE: LUMI) fell 2.4%.

Published by Globes [online], Israel business news - www.globes-online.com - on September 4, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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