The Israeli political leadership is in shock after learning that the Tourism Minister Rehavam Zeevi was shot this morning at the Hyatt Hotel in Jerusalem. The Hebrew daily "Maariv" reported that Zeevi had died from wounds sustained in the assassination attack but later retracted the report. With reports of a claim of responsibility for the attack by the Popular Front for the Liberation of Palestine (PFLP), fears are mounting that another deterioration in the security situation is ahead. Reuters quotes a senior PFLP figure in Beirut as saying the attack was carried out “to avenge the killing of (PFLP) leader Abu Ali Mustafa”.
In inter-bank trading this morning, the shekel is weakening against the US dollar to NIS 4.3007.
The Tel Aviv Stock Exchange rose yesterday after a positive performance on Wall Street on Monday. The lower than expected CPI for September also lifted sentiment. The Tel Aviv 25 index closed 2.74% higher, at 393.85 points, and the Tel Aviv 100 index closed 2.26% higher at 379.31 points. The Tel-Tech 15 closed up 1.76% at 214.86 points. Turnover totaled NIS 297.4 million.
On Wall Street yesterday, stocks closed in positive territory as investors waited for IBM and Intel to release their third quarter results. The Nasdaq closed up 1.52% at 1,722.07 points and the Dow Jones finished 0.39% higher at 9,384.23 points. IBM and Intel succeeded in meeting their targets for the quarter, with IBM beating analysts estimates by $0.01 a share. The Israeli software testing and monitoring systems provider Mercury Interactive (Nasdaq: MERQ) also reported its third quarter results yesterday after the market closed. The company posted earnings $9.8 million, or $0.11 a share in the third quarter, compared with $16.7 million, or $0.18 a share, in the same period last year, and compared with analyst expectations of $0.10 per share.
Bezeq shares could attract interest today. The share dominated trading on the TASE yesterday and rose 2.4%, after falling sharply on Monday. Yesterday “Globes” reported that Minister of Communications Reuven Rivlin, backed by Prime Minister Ariel Sharon, intended to force the Government Companies Authority to publish the privatization tender for Bezeq as formulated by the ministerial privatization committee. The committee decided to sell the 50.01% controlling interest in the company. Rivlin told aides the announcement would be published as soon as the situation in Afghanistan calms down.
Among dual-listed shares, positive arbitrage gaps could lift Teva (+2.6%) and Nice (+2.4%). Negative arbitrage gaps could weigh down Elbit (-3.5%) and Koor (-1.7%).
Arbitrage gaps Wednesday 17 October 2001
| Stock | % Change* |
| Blue Square Israel | -0.7 |
| Delta Galil | -2.9 |
| Elbit | -3.5 |
| Elbit Systems | 1.4 |
| Elron | 1.9 |
| Formula | 1.1 |
| Koor | -1.7 |
| Magic | -2.5 |
| Matav | 0.5 |
| Nice | 2.4 |
| Partner | 0.3 |
| Teva | 2.6 |
| Tower | 0.9 |
*%change required in Tel Aviv to meet New York price
Published by Israel's Business Arena on 17 October, 2001