The Tel Aviv Stock Exchange (TASE) fell today. The Tel Aviv 25 Index fell 1.63% to 661.01 points, the Tel Aviv 100 Index fell 1.74% to 577.07 points, and the Tel-Tech fell 1.16% to 129.35 points. Turnover was NIS 1.23 billion.
The TASE opened higher today, with investors hoping for some balance to yesterday's negative opening to the week. But by mid-day, the market turned down and ended lower.
Overseas markets opened the weak lower, following the weak close to last week. Over the weekend, the leaders of the world's major economies the G20 met in Washington and discussed an aid package, but no decisions were reached.
An aid package is being discussed in Israel as well, and was reportedly approved by Prime Minister Ehud Olmert, but a press conference to announce the plan was delayed as Olmert decided to first try to gain the support of the cabinet and economic committee.
With the low October CPI reading of a 0.1% gain, and expectations that Governor of the Bank of Israel Prof. Stanley Fischer will continue to cut interest rates, the shekel weakened against the dollar and euro. The representative shekel-dollar exchange rate rose 0.82% to NIS 3.915/$, and the representative shekel-euro rate rose 0.34% to NIS 4.95/€.
Bank shares were followed closely today after reports that the Bank of Israel is considering ordering them to set aside larger doubtful debt reserves. The increased reserve is not connected to a specific customer or sector, but a general indication of the risk in their credit portfolios. Bank Leumi (TASE: LUMI) fell 3.79%, Mizrahi Tefahot Bank (TASE:MZTF) fell 3.04%, Bank Hapoalim (LSE: BKHD; TASE: POLI) fell 3.7%, and Israel Discount Bank (TASE: DSCT) fell 5%.
Deutsche Bank analysts Dan Harverd and Richard Gussow issued a "Buy" rating on Makhteshim Agan Industries Ltd. (TASE: MAIN)and set a price target for it of NIS 21. Shares in Makhteshim rose 1.53% today to NIS 10.60.
Real estate shares were also volatile today, with the Real Estate index rising 2%, but then falling sharply to close down a full 13%. Two shares which have attracted much negative talk recently continued to fall, with Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) dropping 3.06%, and Delek Real Estate Ltd. (TASE: DLKR) falling 30.03%. Its parent company, Delek Group Ltd. (TASE: DLEKG), dropped 7.22%.
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2008
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