The Tel-Aviv Stock Exchange today posted a stable trend. The Tel Aviv 100 index rose 0.02% to 276.34 points. The Maof index fell 0.03% to 281.28 points. Turnover amounted to NIS 198 million.
Heavy demand in shekel instruments
While the stock market was unaffected by Governor of the Bank of Israel Yaakov Frenkel’s interest rate decision, the bonds market today was positively in ferment. Very heavy demand of more than NIS 750 million was posted for short-term loans and unlinked debentures, all of which today enjoyed slight advances. The reason for the demand was the relatively high yield assured by those debentures, the assumption being that the current interest rate hike will rein in the inflation rate over the next few months, making STLs, with their 12.4% yield, more attractive.
Also, some people maintained that the capital market had been expecting an interest rate hike of more than 2%, as grossed up in the unlinked debentures, and that instrument posted a slight upward correction today.
Index-linked and foreign currency-linked debentures, on the other hand, posted over NIS 900 million supply, so that profit taking in this linked instrument continued for the second day in succession. Supply in foreign currency-linked debentures was ascribable primarily to the Ministry of Finance’s announcement of a Gilboa bonds issue in higher than expected volume (in October and November a total of NIS 3.4 billion foreign currency linked debentures will be issued). It should not be forgotten that the recent advances in linked instruments reduced their yields to a not inconsiderable extent.
p> Profit Taking on Bank Shares Arrested
In bank shares, which lost much height in the last two weeks, the profit taking trend was arrested. Koor Investment House published a paper today in which it awards buy recommendations to Bank Hapoalim and Bank Leumi, and on the other hand, moderate "hold " recommendations to FIBI and Bank Mizrachi.
Koor estimates that the banks’ shares are being traded cheaply, but they are not expected to recover as long as share prices of the banks in Europe do not recover. These shares were eroded in recent months by more than 30%.
Bank Hapoalim shares attracted a very high turnover today of NIS 45 million - twice the volume of activity in Bank Leumi’s share, which attracted the second highest turnover on the stock exchange. Hapoalim’s share was moderately up, by 0.4%, while Leumi’s share sufficed with a more modest rise of 0.2%. FIBI’s share too joined the list of banking rises, adding 0.8% to its value.
Koor Continues Rising, , Profit Taking at Tadiran
Tadiran shares, which yesterday enjoyed a sharp 17% rise, because of the purchase offer which Koor intends to issue for them, calmed down today, and the shares posted profit taking on the part of those lucky ones who were invested in the share even prior to yesterday. A 17% rise in a lame share market is indeed an excellent reason to realize profits, and this is exactly what investors in Tadiran did today. Tadiran’s shares dropped 3.1% with a NIS 7 million turnover.
On the other hand, Koor shares, which yesterday rose 3.4%, continued to climb today, following the publication of additional estimates by analysts, according to which the acquisition of all Tadiran’s shares by the concern is a step which will serve the interests of Koor shareholders well. Koor’s shares climbed 1.6% today, attracting a turnover of NIS 12 million.
Additional blue chip shares which stood out today with relatively lively activity were Clal Electronics (rose 1.4%) and Makhteshim-Agan (fell 1.9%).
Published by Israel's Business Arena October 26, 1998
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Israel business stocks shares TASE quotes quotations
Israel business stocks shares TASE quotes quotations
Israel business stocks shares TASE quotes quotations
Israel business stocks shares TASE quotes quotations
Israel business stocks shares TASE quotes quotations
Israel business stocks shares TASE quotes quotations
Israel business stocks shares TASE quotes quotations
Israel business stocks shares TASE quotes quotations
Israel business stocks shares TASE quotes quotations
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