The Tel Aviv Stock Exchange (TASE) is likely to reflect continued uncertainty about Israel’s security situation today, after the terrorist attack in Rishon-LeZion on Wednesday evening. Investors may be concerned about a possible renewed wave of Palestinian suicide bombings, after the attack in Netanya earlier this week and a previous bombing in Rishon Le-Zion on May 7.
Yesterday, shares on the TASE closed flat. The Tel Aviv 25 index closed down 0.07% at 390.47 points, the Tel Aviv 100 index rose 0.11% to 379.11 points, and the Tel-Tech 15 index gained 0.08% to 228.86 points. Turnover totaled NIS 209 million
On Wall Street, shares advanced moderately on Wednesday, lifting some dual-listed shares. The Nasdaq gained 0.56% to 1,673.45 points, and the Dow Jones added 0.52% to 10,157.88 points.
Drug manufacturer Teva (Nasdaq: TEVA) might rise today on the back of a 1.3% positive arbitrage gap versus its Nasdaq-listed share. On Wednesday, Merrill Lynch published a bullish report on Teva, saying it was excited about the company’s prospects for 2003 and that its already above consensus estimates should prove conservative.
Bank Hapoalim shares may be weak today. “Globes” reports that the Israel Securities Authority and the Supervisor of Banks are expected to order the bank to restore the permanent investment status of its holding in Koor Industries (NYSE: KOR). The order means that Bank Hapoalim will have to deduct from its profit for 2002 NIS 234 million which the bank reported last year as "deferred tax receivable" in respect of its Koor holdings
Separately, Hebrew daily “Yediot Ahronot” reports that Israel’s banks will be forced to make allowances for doubtful debts amounting to NIS 6 billion thus year – a 50% increase from last year. The forecast was calculated by Alon Glazer, banking analyst at Ilanot Batucha.
Shares of supermarket chain Blue Square Israel (NYSE: BSI) may attract interest. “Globes” reports that Mivtachim Pension Fund and Gmul Investment Company are holding preliminary talks with the Epsilon brokerage to set up a consortium to compete in the tender to acquire Blue Square Israel, at a company value of $450 million.
Arbitrage gaps Thursday 23 May 2002
| Stock | % Change* |
| Audiocodes | -0.3 |
| Blue Square Israel | -0.8 |
| Delta Galil | -1.4 |
| Elbit Systems | -0.8 |
| Elron | 0.7 |
| Formula | -0.7 |
| Koor | 0.1 |
| Magic | 3.9 |
| Matav | 0.6 |
| Nice | 0.6 |
| Partner | -0.2 |
| Teva | 1.3 |
| Tower | -0.1 |
*%change required in Tel Aviv to meet New York closing price
Published by Globes [online] - www.globes.co.il - on 23 May, 2002