The Tel Aviv Stock Exchange (TASE) closed up today. The Tel Aviv 25 Index gained 2.93% to a record 1,228.32 points; the Tel Aviv 100 Index added 2.7% to 1,186.90 points; while the Tel Tech Index closed up 0.45% at 452.31 points. Turnover totaled NIS 1.957 billion.
The TASE opened the week with gains that sent the Tel Aviv 25 Index soaring to an all-time high in excess of 1,200 points. Driven on by the positive momentum on Wall Street at the end of last week, the leading indices made strong gains throughout the session with the Tel Aviv 25 Index powering ever higher as trading progressed. The trading in foreign currency options showed the shekel gaining a further 0.6% against the dollar to close at around NIS 3.97/$, amid mounting speculation about the US Federal Reserve Board's upcoming decision on the interest rate this Wednesday. The bond market took courage from the shekel's positive momentum with strong gains for long-term shekel bonds, which were buoyed yet further by the positive note on the US bond market at the end of last week.
Real estate stocks led the way on the TASE today, with the TA Real Estate 15 Index gaining 4.2%, a gain that gave a clear indication of the current sentiment among investors. One of the most notable in the real estate sector were Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK), which surged 5.3%. Gazit Inc. (TASE: GZIT) jumped 6.5%, Global Trade Centre Real Estate NV (TASE:GTC) climbed 3.3%, Elbit Medical Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) advanced 4.4%, and Jerusalem Economic Corp. (TASE:ECJM) strengthened 3.8%, largely as a result of the gains made by their subsidiaries on stock exchanges overseas.
Aside from the real estate sector, Israel Chemicals (TASE: CHIM) was the star today. It led the trading tables, soaring 6.4%, a gain that also sent its parent Israel Corp. (TASE: ILCO) up by 7.2%. The reason for Israel Chemical's strong showing was a report last week of a breakdown in operations of one of the world's leading producers, Russia's JSC Silvinit, which produces 10% of the world's potash. It is believed that the breakdown could lead to higher price levels because of the new supply/demand balance in the global potash market.
In other news, Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) closed down 0.8% on the back of a negative arbitrage gap. Ormat Industries Ltd. (TASE: ORMT) climbed 3.8% following the successful completion of a share offering which netted it $150 million, as the company's shareholders continued to battle for the controlling stake in it. In the banks sector, Bank Hapoalim (LSE: BKHD; TASE: POLI) gained 2.1%, and Bank Leumi (TASE: LUMI) advanced 3.1%, gains which sent the Banking Index up 2%. Insurance companies also had a good day, especially Clal Industries and Investments Ltd. (TASE: CII), which soared 7%.
Published by Globes [online], Israel business news - www.globes.co.il - on October 28, 2007
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