The Tel Aviv Stock Exchange (TASE) fell today. The Tel Aviv 25 Index fell 6.57% to 592.07 points; the Tel Aviv 100 Index lost 6.59% to 517.73 points, while the Tel Tech Index fell 5.82% to 115.92 points. Turnover totaled NIS 1.051 billion.
Trading on Wall Street ended last week on a positive note, spurred on by the announcement by President elect Obama of his choice for Treasury Secretary, New York Federal Reserve Bank chief Timothy Geithner, but the same could not be said for trading on the TASE today, with the leading indices slumping yet again. Trading on the bond market provided slight consolation, with the yield on Shachar series 217 bonds ending up 0.3% and the yield on series 2683 bonds rising 0.2%. Index linked bonds with the same duration also gained 0.3%.
Bank stocks set the tone today, with the Banking Index sliding 8.5%. The two big banks, Bank Hapoalim (LSE: 80OA; TASE: POLI) and Bank Leumi (TASE: LUMI) accounted for the second and third largest volumes on the market. Bank Hapoalim sank 7.9% while Bank Leumi slumped 9.7%. The third largest bank, Israel Discount Bank (TASE: DSCT) also focused much interest, ending the day down 6.1%.
In the chemicals sector, Israel Chemicals Ltd. (TASE: ICL) remained under pressure, giving up 9.5% by the close. The company is expected to unveil strong results in its third quarter financial report on Wednesday but is also likely to lower its guidance, as global commodity prices and demand for potash continue to nosedive. Israel Chemicals' prospects did not bode well for its parent, Israel Corporation. (TASE: ILCO), which lost a further 13.9% at the end of the session.
MA Industries (Makhteshim Agan) (TASE: MAIN), on the other hand, rebounded 4.5%. Another member of the Tel 25 Index bouncing back today was VeriFone Holdings Inc. (Nasdaq: PAY; TASE: PAY), which opened the day with a positive arbitrage gap of 20%. The company climbed 12.4% today, after the earnings warning it issued on Thursday sent it crashing 50%. The third member of the Tel Aviv 25 Index staging a comeback today was Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK). It rose 1.4% and was also the sole ray of light in the battle-worn real estate sector, where the Tel Aviv Real Estate 15 Index only lost 5.3%.
Housing and Construction Holding Co.(Shikun u'Binui) (TASE: HUCN) was one of those providing a drag on the real estate sector today. It gave up a further 7.4%, following its announcement on Thursday that it would make a NIS 30 million provision in the third quarter, for the loss in the value of the loans its subsidiary granted a group of landowners in a property deal.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2008
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