Strong demand for Bezeq shares

Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) rose 2.7% in heavy in early trading today as market sources believe that the TASE management will increase its weight on the Tel Aviv 25 Index. The TASE management revises the weight of the shares on the index once per quarter in order to adjust each share's liquidity compared with the holdings of its controlling shareholders. The next revision is tomorrow.

Market sources believe that Bezeq's weight on the Tel Aviv 25 Index will rise to 9.5% from its current 7.43%, following sales by parties at interest Gad Zeevi and Apax Partners in recent weeks.

A trader at a large investment house told "Globes" today, "We expect demand of NIS 113 million from mutual funds and exchange traded funds."

NIS 113 million is 43% more than Bezeq's average daily turnover. The trader added, "Institutional investors have bought almost nothing until now, so when the TASE issues an official statement on the revision, orders will flow."

Published by Globes [online], Israel business news - www.globes-online.com - on September 29, 2009

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