The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 Index rose 2.22% to 896.99 points, the Tel Aviv 100 Index rose 2.54% to 812.77 points, and the Tel-Tech rose 2.29% to 200.95 points. Turnover was NIS 2.75 billion.
TASE traders heaved a sigh of relief today after one of the more wild weeks on the market as its follows developments on the Wall Street bailout as Congress refuses to rubber-stamp the US Treasury Department's plan. Meanwhile, US macroeconomic figures indicate that a slowdown or even recession is already underway. Wall Street rose on the opening on the growing assumption that Congress will ultimately approve the bailout.
After the expiry of Tel Aviv 25 options, which lasted a mere 22 seconds, during which turnover totaled NIS 740 million, the TASE opened weakly but quickly made a U-turn, with a boost from gains in European markets. The climb gathered strength as the session wore on, thanks to a positive opening on Wall Street, despite an announcement by General Electric Co. (NYSE: GE) that it was cutting its profit guidance and suspending its share buyback program.
For the week as a whole, Tel Aviv 25 Index rose 6.5%, the Tel Aviv 100 Index rose 7.2%, the Tel-Tech rose 1.4%, the Real Estate 15 Index rose 23.6%, and the Banking Index rose 15.6%. However, the aggregate market cap of TASE companies is down 25.6% between Rosh Hashana 5768 and next week's Rosh Hashana 5769, a decline of NIS 225 billion, and the Tel Aviv 25 Index is down 16%.
In the foreign currency market, the shekel-dollar exchange rate fell 0.73% to NIS 3.396/$ and the shekel-euro exchange rate fell 0/44% to NIS 4.999/$.
In the stock market, today was the day of the tycoons, but each one had a different tale to tell. Both Lev Leviev and Yitzhak Tshuva are suffering from a loss of investor confidence, as reflected in their companies' bonds. Their companies' shares, however did well today. Tshuva's Delek Group Ltd. (TASE: DLEKG) rose 13.9%, while Leviev's Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) rose 11.9%, despite a downgrade of its bonds by Midroog Ltd.
The Banking Index rose 4.5%, thanks to a 4.4% gain by Bank Hapoalim (TASE: POLI; LSE:80OA) and a 3.5% gain by Bank Leumi (TASE: LUMI). Israel Discount Bank (TASE: DSCT) was unchanged.
The Real Estate 15 Index rose 6.4%, thanks to Africa-Israel, as well as a 13.2% rise by Delek Real Estate Ltd. (TASE: DLKR), and an 11% rise by Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN).
On the downside, it is possible to conclude that today was a good day for Arcadi Gaydamak. He sold his 67.4% stake in Ocif Investments and Development Ltd. (TASE: OCIF) to his lawyer for NIS 110 million, after buying it for NIS 600 million over a year ago. The share rose 15.9%, even though the courts also attached part the shares, as well as other of Gaydamak's assets in lawsuits being heard against him.
Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2008
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