"The positive trend on the TASE depends on the security quiet continuing, as well as the results of the budget vote."
Last week was a good week for the Tel Aviv Stock Exchange (TASE), reflected by rising share prices, and a sharp increase in turnovers. A continuation of this trend is dependent on the security quiet continuing, as well as the results of the budget vote, which will probably strongly affect the direction of trading on the TASE, states Bank Leumi (TASE: LUMI).
As for the foreign currency market, Bank Leumi says that the shekel-dollar exchange rate will probably stay at its current level in the short term, thanks to the continuing security stability, economic recovery, and the inflow of foreign capital. External factors, including the dollar's negative trend on global markets, the expected rise in US interest rates next month, and the consequent narrowing of the interest rate gap between Israel and the US, are likely to cause some volatility.
As mentioned, the shekel-dollar exchange rate will probably stay at its current level, of NIS 4.30-4.38/$, during the coming week.
Published by Globes [online], Israel business news - www.globes.co.il - on March 6, 2005