Real estate company Africa-Israel Investments (TASE: AFIL) continues to star on the Tel Aviv Stock Exchange. The share shot up another 16.4% today, making at a 70% rise in a week. Africa-Israel, controlled by Lev Leviev, attracted the highest volume of trading on the market: turnover of NIS 170 million, amounting to 12% of today's total turnover.
It is believed on the stock market that a large proportion of those buying Africa-Israel shares are foreign investors, institutions and speculators, seeking to exploit the high volatility in the share price to make quick profits.
Since the beginning of 2009, Africa-Israel's share price has put on 180%, and the company now has a market cap of NIS 4.6 billion. The share price is nevertheless still 85% off its peak.
The trigger for the wave of rises was the deal by the company to sell the Ramat Aviv and Savyonim malls to Melisron, controlled buy Ofer Btrothers, at a value of NIS 1.7 billion. The deal will yield cash of NIS 800 million for Africa-Israel. It gives the company breathing room, and removes the doubts about its ability to meet at least its next bond repayment. The general trend on world markets has also given the stock a following wind.
The positive sentiment surrounding Africa-Israel extended to its bonds as well, which rose by an average of 8% today, making it a 100% rise since the start of the year. However, the yield on the company's bonds is still high, at 25-40%.
Published by Globes [online], Israel business news - www.globes.co.il - on April 16, 2009
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