The Tel Aviv Stock Exchange (TASE) fell today. The Tel Aviv 25 index was down 0.30% at 719.38 points, the Tel Aviv 100 index fell 0.44% to 725.54 points, and the Tel-Tech 15 index fell 0.52% to 402.72 points. Turnover totaled NIS 734 million.
The TASE took it easy today, after the positive trend came to a halt towards the end of trading yesterday. The leading indices were in negative territory for almost the whole day, but it nevertheless appears that the market is not quite ripe for extensive profit taking.
Traders I spoke with today were still in a positive mood, but did note that, following the recent surge, it appears that the TASE will continue testing the 720-point level in the coming days. They also cited some tension in the market over the evacuation of Sa-Nur, scheduled for tomorrow, which is threatening to become a key pocket of resistance to disengagement.
Nissim Cohen, manager of Dikla, First International Bank of Israel’s mutual fund management company, was more pessimistic. He noted he would not enter the market at current price levels, and added that, as of now, the market was suffering from a high degree of uncertainty, and there was definitely no reason to invest in it.
The trend in the bank shares continued to be mixed, while they still led market in trading volume. Bank Hapoalim was up 0.2%, following a string of warm recommendations from UBS, Merrill Lynch, and Excellence Investments on the basis of its financials. Bank Leumi dipped 0.7%. Incidentally, the mood around Israel Salt Industries continued to be positive, and the share added 1.3% more today.
Of the major shares, Israel Corporation stood out again today, climbing 3.6%, owing to a number of factors. Among other things, the rises in the share are attributed to preparation by investors for Israel Chemicals’ results tomorrow, and Oil Refineries’ record results today, although the latter doesn’t affect Israel Corporation. Trading in the Israel Corporation share was also affected by a huge deal today on the international shipbuilding market, in which a Canadian marine cargo company was acquired for $2 billion. This deal enthused investors, and caused second thoughts about the value of Zim Integrated Shipping Services, controlled by the Israel Corporation.
Chemical industry shares were down today; Israel Chemicals lost 1.8%, and MA (Makhteshim-Aga) Industries 0.8%. Teva inched up 0.1%, while Bezeq shed 0.3%.
Of the other companies reporting their results, Alrov (Israel), controlled by Alfred Akirov, continued to deliver the goods, even after joining the Tel Aviv 100 index. The share responded with a 2.1% drop.
Blue Square Israel was up 2.8% today, in view of the premium at which the deal to transfer control in the company to David Wiessman will reportedly take place. Elbit Medical Imaging lost 3.8%, after reporting the completion of a merger deal with Elscint in a share swap. The ratio for the swap will be 0.53 Elbit Medical Imaging shares for each Elscint share.
Among the small cap shares, XTL Biopharmaceuticals was up 0.4% today, after reporting the $35 million acquisition of a biotechnology company that is also active in the hepatitis C field.
Published by Globes [online] - www.globes.co.il - on August 22, 2005