This wave of deadly terror attacks this morning in Tel Aviv, Afula and near Jerusalem has triggered another day of declines on low volumes. For the second time this week, the continuing violence at home has kept shares in Tel Aviv from sharing in the very bullish mood among investors abroad.
In morning trade, the Tel Aviv 25 index is down 1.2% at 420.65 points, as all shares in the index head south. The Tel Aviv 100 index is down 1.1% at 404.89 points and the Tel-Tech 15 index is down 0.3% at 235.91 points. Turnover totals NIS 39 million.
The violence is also affecting the foreign currency market, where the shekel is slipping against the dollar to NIS 4.6993/$, which reflects a 0.48% depreciation from yesterdays’ representative rate.
The mood abroad is obviously very different to that at home. In New York on Monday, stocks surged again on the back of more optimism on the US economy. The Nasdaq rose 3.14% to 1,859.32 points and the Dow Jones added 2.1% to 10,586.82 points. Among Israeli stocks listed on the Nasdaq, Check Point (Nasdaq: CHKP) soared 11.3% and Zoran (Nasdaq: ZRAN) added 10%. This morning, however, the London FTSE-100 index is down 0.3% and the Frankfurt DAX is off 0.6% as investors engage in some profit taking.
On the TASE, Koor is down 1.4%. Hebrew daily “Yediot Ahronot” reports that Koor subsidiary Elisra Electronic Systems has lost a $160 million tender with the Greek Air Force. The report said the contract was awarded to two US companies. At the same time, Koor may be supported by the 2.5% rise in ECI Telecom (Nasdaq: ECIL) shares on Nasdaq yesterday. Koor owns 33% of ECI.
Banks are sliding with the market, with Bank Hapoalim (-1%) outperforming Bank Leumi (-1.4%). “Globes” has learned that Hapoalim, Israel’s largest bank, has invested another $55 million into its wholly-owned New York-based subsidiary, Signature Bank. This amount comes in addition to the $45 million that Hapoalim invested in Signature when it opened in May 2001.
IDB shares are in negative territory, on low volumes. IDB Holdings is down 2%, IDB Development is down 1.9% and Discount Investment Corporation is off 1.4%.
Hilan Tech shares are advancing 7%. This morning, it was announced that businessman Ofer Hirchson and Avi Baum had bought 47.5% of Hilan Tech for NIS 57 million, reflecting a company value of NIS 120 million, roughly three times above market. Hilan Tech shares have lost 60% of their value over the past 12 months.
Among dual-listed shares, Scitex (Nasdaq: SCIX) is up 2.6% compared with a 10.2% positive arbitrage gap. NICE-Systems (Nasdaq: NICE) is losing 1.4% and Elbit Systems (Nasdaq: ESLT) is down 0.9%, despite a positive pull from the higher price of their New York shares.
Meanwhile, Teva (Nasdaq: TEVA), the most traded share in the market, is down 1.2% (versus a 0.7% negative arbitrage gap) on a NIS 7 million turnover.
Arbitrage gaps Tuesday 5 March 2002
| Stock | % Change* |
| Audiocodes | 0.7 |
| Blue Square Israel | -0.1 |
| Delta Galil | 3.6 |
| Elbit | -1.4 |
| Elbit Systems | 1.4 |
| Elron | 0.6 |
| Formula | 0.5 |
| Koor | 0.1 |
| Magic | 5.0 |
| Matav | 0.0 |
| Nice | 1.3 |
| Partner | -1.3 |
| Teva | -0.7 |
| Tower | 4.1 |
*%change required in Tel Aviv to meet New York price
Published by Israel's Business Arena on 5 March, 2002