Bank Hapoalim economists expect a positive short-term trend in the stock market, due to the presence of a number of recently published positive parameters. These include: the continuing increase in State revenues from taxes; the expected low indices which will allow for further reductions in interest rates; expected peak repayments from savings accounts through the end of the year, of which part will be directed toward the stock market; and the increasing number of IPOs, some of which have been oversubscribed at high prices.
The bank’s economists think that Wall Street will not be a threat because US interest rates will remain unchanged until the end of the year and the US is again on the track of desired growth.
Regarding the dollar, Bank Hapoalim expects that it will continue to hover at its present level, and may even decline, as long as capital continues to flow to Israel as a result of the growth in exports and high interest rates in Israel.
Union Bank economists assess that there will be realizations in the stock market in the short term due to the declines in Nasdaq. In the medium and long terms, Union Bank recommends investing in the stock market, because macro-economic figures are likely to be positive, pointing to the end of the recession. The bank expects 4-5% growth, low inflation, a continuing decline in interest rates, accelerated privatization and the publishing of good financial reports by most companies.
Union Bank economists recommend exploiting the possible share falls to amass shares. They recommend Bank Hapoalim and Bank Leumi, Clal Industries, Petrochemicals, Elite, and Danya Cebus in Israel, and RIT Technologies, Nur Macroprinters, NICE, Gilat Communications, Gilat Satellite, Teva and M-Systems in the US.
Union Bank economists expect the dollar to be traded at NIS 4-4.06 in the short term. They expect that there may be a slight strengthening due to the weakness on Nasdaq.
Published by Israel's Business Arena on 10 September 2000