Something happened to the market today. Whether due to the upcoming elections and Benjamin Netanyahu’s speech last night, or expectations that a solution to the US elections is in sight, the market was not like it was previously. Turnover grew and the leading indices advanced handsomely, with the TA 25 strengthening its hold above 500 points.
The shares of the two major banks, which had disappeared in the past few days, returned to center stage today. Bank Hapolaim attracted the day’s highest turnover for most of the day (NIS 38 million), but pressured the market by falling 0.3%. Bank Leumi, traded on positive sentiment for most of the day, slipped 0.1% on a turnover of NIS 32.5 million. The First International Bank share 1 soared 3%, while the shares of United Mizrahi Bank and Union Bank were more modest and gained only 0.8% and 1.1% respectively.
What is happening at Agis? The share, which is normally traded in the margins, is attracting “suspicious” activity with high turnovers for the second consecutive day. The share gained another 1.8% today on an exceptional NIS 19 million for no apparent reason (rumors say the Discount group was one of the biggest sellers). Company general manager and controlling shareholder Mori Arkin recently said that the share's price is attractive and Agis is considering buying back shares.
Agis VP Finance Rafi Lebel did not disperse the mist when he told “Globes” today that Agis is not behind the last two day’s activity.
Whatever the case, Discount Bank, with a small stake in Agis, is seeking to sell its unsuccessful investment and met with institutional buyers. Agis really has been a disappointing investment in recent years.
Makhteshim-Agan is continuing to expand its basket of products, acquring products sold under the framework of spin-offs by companies undergoing mergers and consolidation.
Makhteshim purchased the rights to manufacture and market the bupirimate Nimrod T, intended to treat fungicide, from Cygenta. Sales of the product total $7 million per year, mainly to Western Europe.
Makhteshim began setting up the manufacturing plant for Nimrod T in Ramat Hovev, and the company management estimates that marketing will commence in January 2002. The company also announced it had signed an agreement with Cygenta to manufacture two additional products, which it reported six months ago. The Makhteshim Agan share posted a 2% rise today, while Koor rose 0.9%.
Gazit Globe today responded with an exceptional 4% rise (closing up 1.4%) on a NIS 360,000 turnover. To all appearances, the rise was a reaction to the report this morning that Leumi and Co. Investments is negotiating with the Gazit Globe controlling shareholders to acquire 20% of the company at a company value of NIS 650 million, 18% higher than the market value this morning. Leumi estimates the company value at NIS 650 million, while the Gazit Globe shareholders put it at NIS 700 million.
Retalix (formerly Point of Sale) soared 5.8% today, on a turnover of NIS 3 million. Many buy orders were unexplainably made in the last two hours of trading.
Published by Israel's Business Arena on 11 December, 2000