Shares on the Tel Aviv Stock Exchange might decline today, although by less than the Nasdaq’s slide on Tuesday. The shekel, which continues to advance against the dollar, will help to lift sentiment on the market.
Nasdaq futures, a key indicator for the local market, are currently over 4% in the red. Yesterday in New York, shares declined on further weakness in tech stocks. The Nasdaq closed down 2.49% at 1,423.99 points, while the Dow Jones lost 1.67% to 9,126.82 points. After US markets closed, telecom company WorldCom said it would have to restate financial results to account for billions of dollars in improper bookkeeping.
Meanwhile, another key mover for the market – the shekel – is currently strengthening against the dollar in inter-bank trade. The shekel’s advance to below the NIS 4.9/$ mark will have a positive effect on the market, as investors will likely see it as a sign that the Bank of Israel’s 2% hike in the interest rate was enough to support the ailing Israeli currency. At web-posting, the shekel is trading at 4.8937/$, a 0.51% appreciation since Tuesday.
Yesterday, shares on the TASE rose sharply. The Tel Aviv 25 index closed up 3.93% at 362.98 points, the Tel Aviv 100 index rose 3.30% to 351.53 points, and the Tel-Tech 15 index gained 1.46% to 207.13 points. Turnover totaled NIS 246 million.
Today, shares of Israel Discount Bank might attract interest. Hebrew daily “Maariv” reports that Nochi Dankner, who controls the Ganden group, is proposing to the Bank of Israel Supervisor of Banks the future sale of part of IDB’s holdings in Israel Discount Bank. According to the report, the Supervisor of Banks will not have to approve the status of Yitzhak Manor in the group buying IDB (led by Dankner) if IDB ceases to be a controlling shareholder of Discount Bank. Manor is also a controlling shareholder in Union Bank.
Koor shares might be active. Hebrew daily “Yediot Ahronot” reports that shares of Koor’s defense systems subsidiary Elisra Electronic Systems will be launched in New York. The newspaper says the issue will take place after the sale of 30% of Elisra to Elta Electronic Industries.
Among dual-listed shares, market heavyweight Teva (Nasdaq: TEVA) starts the session with a 0.1% negative arbitrage gap.
Arbitrage gaps
| Stock | % Change* |
| Audiocodes | -5.0 |
| Blue Square Israel | -0.3 |
| Delta Galil | -1.7 |
| Elbit Systems | 0.1 |
| Elron | -0.6 |
| Formula | -0.8 |
| Koor | 2.5 |
| Magic | -4.3 |
| Matav | -3.4 |
| Nice | -0.6 |
| Partner | -1.1 |
| Teva | -0.1 |
| Tower | -1.0 |
*%change required in Tel Aviv to meet New York closing price
Published by Globes [online] - www.globes.co.il - on 26 June, 2002