The Tel Aviv Stock Exchange (TASE) fell today. The Tel Aviv 25 index closed down 2.44% at 354.11 points, the Tel Aviv 100 index fell 2.15% to 343.97 points and the Tel-Tech 15 index lost 2.81% to 201.30 points. Turnover totaled NIS 204 million.
”They had to spoil our party,” a market player told me today. He was referring to WorldCom, of course, the US telecommunications giant, which yesterday admitted its reports had undergone plastic surgery to the tune of billions of dollars.
So after two days of trying to recover from the recent falls, we suffered another attack of Enronitis – that awful disease that made US companies remake their reports and improve the numbers. Once again, the bears had their say. The TASE couldn’t stand against the global tide, and the leading indicators posted sharp declines.
Tel Aviv 25 hijinks
Towards the close of trading, the real market masters showed up – the Tel Aviv 25 players. The June options will expire tomorrow, and assessments are that we’re in for a fairly interesting and volatile time, in view of the recent share price falls. The players began maneuvering the exercise price today in accordance with their positions, which boosted trade volume in the final two hours.
While shares were down sharply today, the bond market continued its recovery. Shahar shekel bonds carried on their correction of their steep decline in recent weeks, with yields dropping to 10.4%, compared with 12% on Sunday. Index-linked bonds also prospered, with their yield sliding to 5.2-5.3% today.
Among shares, red ink was the order of the day. The leading losses were posted by the IDB group shares, with IDB Holdings down 4.2%, IDB Development 4.5%, Discount Investment Corporation 5.1%, and Clal Industries and Investments 5%. The group’s large losses were a result of its heavy exposure to the telecommunications market, particularly through Discount Investment.
Also standing out on the wrong side of the ledger were the major bank shares. Bank Hapoalim dropped 3.4% and Bank Leumi was off 1.9%. These shares, which this week dropped to their lowest level in the past three years, had rebounded by 6% in the past two days, so they are still 3-4% above their low points.
Incidentally, Discount Bank stood out with a slight 0.3% gain, after shooting up 6.7% yesterday. Discount Bank is at a lower point than the other banks, although predictions are that the bank will continue its recovery, after undergoing the worst period in its history in the past 18 months.
Israel Chemicals continues to demonstrate strength
The Israel Chemical share was also relatively strong, while the Israel Corporation, its parent company, which was ahead of the game for most of the day, followed the market by closing down about 1%. I’ll also mention Makhteshim-Agan (MA) Industries, which reverted to its losing ways with a 1.7% decline.
Oil shares step on the gas
Standing out today on the right side of the ledger were the participation units of the oil and gas exploration shares, particularly Yam Thetis. The group signed an agreement yesterday to supply gas to the Israel Electric Corporation.
Avner participation units spurted 7%, and Delek Drilling jumped 6.5%, as did Delek Energy, its parent company. The rises reached the top point in the chain – the Tel Aviv 25 Delek group share, which rose 2.4% today, in contrast with the index’s deep dip.
The Ganden group today demonstrated its determination to complete its acquisition of all of Azorim Properties. The company raised the price for its offer to purchase for the company’s shares from NIS 9.84 to NIS 10.50, while the Azorim Properties share traded on the exchange at NIS 9.74 today. The company also postponed the deadline for its offer by a week, to July 2.
Published by Globes [online] - www.globes.co.il - on June 26, 2002