The Bank of Israel reported that foreign investors purchased shares worth $560 million on the Tel Aviv Stock Exchange in November 2009, compared with $170 million in October - a rise of 230%. The Bank of Israel reported that most of the investments were in the communications, chemicals and pharmaceuticals sectors.

Foreign investors also bought $140 million of shares of Israeli companies traded on overseas stock exchanges in November, compared with $80 million in October.

Foreign investors also bought $430 million worth of TASE-listed government bonds in Tel Aviv in November 2009, compared with $400 million in October 2009. Most of the investments were in long-term Shahar unlinked government bonds, while at the same time foreign investors sold short-term deposits worth $170 million.

The Bank of Israel also reported that foreign direct investment in Israel in November 2009 amounted to $580 million, mainly in high-tech and finance.

While foreign investment is pouring into Israel, which is seen as one of the only countries that has got through the global crisis without any substantial damage, Israelis are increasingly preferring to invest overseas. In November 2009 Israelis bought $590 million worth of share on overseas stock exchanges, compared with $330 million in October. In January - November 2009, Israelis bought $5.2 billion of shares on overseas stock markets, 160% more than the $2 billion in all of 2008, and five times the $1 billion bought in 2007. Most of these investments were by institutional investors, mainly provident funds and insurance companies.

Published by Globes [online], Israel business news - www.globes-online.com - on January 4, 2010

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