The Israeli political leadership is in shock after learning that the Tourism Minister Rehavam Zeevi was assassinated this morning at the Hyatt Hotel in Jerusalem. 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 lies ahead. Reuters quoted a senior PFLP figure in Beirut as saying the attack was carried out “to avenge the killing of (PFLP) leader Abu Ali Mustafa”.
The uncertainty following the assassination of Zeevi has unnerved investors. Trading on the TASE has been volatile, with the blue-chip TA-25 index slipping in and out of the red. In late-morning trade, the TA-25 index is up 0.3%, at 394.98 points, and the Tel Aviv 100 index is up 0.2% at 380.23 points. The Tel-Tech 15 is unchanged at 214.94 points. Turnover totals NIS 90 million.
In inter-bank trading, the shekel is weakening against the US dollar to NIS 4.3007.
The uncertainty in Tel Aviv contrasts with the bullish surges in European bourses. The London FTSE-100 index is up 2%, the Frankfurt DAX is climbing 2.5% and the Paris CAC-40 is adding 2.8%. Nasdaq futures (+2.5%) indicate a strong opening in New York.
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.
On the TASE, Bezeq is down 0.6% on an active NIS 11 million turnover. 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.
The most traded share (with a NIS 13.6 million turnover) is Teva (Nasdaq: TEVA), which is up 2.1% on a 2.6% positive arbitrage gap.
Digital recording solutions provider NICE-Systems (Nasdaq: NICE) is up 1.6% on a +2.4% arbitrage gap.
Osem is advancing 1.6% on a NIS 2 million turnover. The foodstuffs manufacturer today announced a NIS 70 million dividend, comprised of NIS 20 million for year 2000 and NIS 50 million as an interim dividend for year 2001. The pay date is 29 November, and the ex-date is 15 November.
The heaviest fallers in the TA-25 index are IDB Group shares, with IDB Development down 1.6% and IDB Holdings down 1%. The holding company Koor is 0.9% lower.
Published by Israel's Business Arena on 17 October, 2001