Quiet trading day expected as US celebrates July 4

The Nasdaq fell 0.37% yesterday. Dual-listed stocks should have a mildly positive influence on the market.

Trading is expected to be thin today as Americans celebrate the Independence Day holiday. However, the profit taking witnessed yesterday is likely to continue.

Yesterday, the TA-25 index lost 0.8% to 429.05 points, the TA-100 index lost 0.67% to 419.07 points and the Tel Tech 15 index was down 1.94% to 273.29. Turnover totaled a low NIS 177 million.

In New York, trading was cut short in advance of July 4 celebrations. The Nasdaq fell 0.37% to 2,140.7 points, and the Dow Jones fell 0.21% to 10,571 points.

Partner completed its first day of trading (in the TASE) impressively, rising 8.9% on a positive 6% arbitrage gap. Interest in the stock was high, and it finished the day with a NIS 7.5 million turnover. Partner, which operates the ‘Orange’ Israeli mobile phone network, has skyrocketed 30% over several days, thanks to dual-listing. Partner will join the heavyweight TA-25 index and the broader TA-100 index on August 1.

Dual-listed stocks should have a mildly positive influence on the market today. Koor, Matav, Elron, Elbit Systems, Formula and Elbit could rise on positive arbitrage gaps.

Arbitrage gaps Wednesday July 4 2001

Stock

% Change*

Blue Square Israel

-0.8
Delta Galil 0.4

Elbit

2.1

Elbit Systems 

1.5

Elron

1.2
Formula 1.7

Koor

2.3
Magic 0.3
Matav 1.8
Nice -0.9
Teva -0.5
Tower  -1.1  

*%change required in Tel Aviv to meet New York price

Bezeq was unchanged yesterday. After the close, “Globes” reported (from sources) that Government Companies Authority director-general Yaron Jacobs was renewing his pressure on Bezeq to exercise its option granted under the agreement with Shamrock to buy Shamrock’s Pele-Phone holdings next month. Shamrock bought the stake in Pele-Phone from Motorola as a temporary alternative, until Bezeq’s privatization.

Bezeq defined the possible purchase of Shamrock’s shares in August, making Pele-Phone a government company, as “absolute nonsense.”

Published by Israel's Business Arena on 4 July, 2001

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