Shares on the Tel Aviv Stock Exchange (TASE) may rise today for a third consecutive session, after the tech-heavy Nasdaq jumped over 3% on Thursday and maintained those gains on Friday.
US markets have now gained for seven weeks in a row, causing the Nasdaq to add 31% to its value since early October lows. The Dow Jones is up 21% in the same period. US market commentators said the gains were a result of a belief among investors that the economic situation was beginning to improve, while concerns about terror, Iraq and corporate accountability were already priced into the market.
Meanwhile, investors on the TASE are likely to keep a watchful eye this week on quarterly reports, as earnings season reaches its peak. Israel’s main banks and holding companies are all due to report this week.
Today, investors may focus on drug maker Agis Industries, after it reported strong third quarter results. Net profit was NIS 28.8 million, compared with profit of NIS 1 million in the corresponding period last year. Revenue jumped 22% to NIS 382.5 million, on the back of a 68% surge in international sales, the company said. “Globes” reported last week that Bank Hapoalim analysts expected “exceptionally good” third quarter results from Agis, and forecast its profit would be NIS 23 million on sales of NIS 375 million.
Shares of heavily weighted Teva (Nasdaq: TEVA) may decline on the back of a 1.2% negative arbitrage gap, after its Nasdaq-listed stock fell 1.9% on Friday to $76.38.
Meanwhile, holding company Koor Industries (NYSE: KOR) starts today’s session with a 5.2% positive arbitrage gap. Koor’s 31% owned affiliate ECI Telecom (Nasdaq: ECIL) gained 11% on Thursday and another 4% on Friday to close at $2.43 - a three month high.
Supermarket chain Blue Square Israel (NYSE: BSI) may attract interest. Hebrew daily “Yediot Ahronot” reports that Deutsche Bank has pulled out of the tender to buy the Co-Op Blue Square Consumer Cooperative Society. The paper also reported that following the publication of Blue Square’s poor third quarter results, the chain will probably be sold for NIS 400 - 450 million, which is below initial estimates.
On Thursday, the TASE closed higher on a NIS 180 million turnover. The Tel Aviv 100 rose 0.78% to 338.72 points, the Tel Aviv 25 index rose 0.76% to 345.59 points, and the Teltech rose 1.15% to 173.43 points.
Arbitrage gaps
| Stock | % Change* |
| Audiocodes | -2.0 |
| Blue Square Israel | 0.1 |
| Delta Galil | -0.9 |
| Elbit Systems | 0.0 |
| Elron | -1.1 |
| Formula | 1.4 |
| Koor | 5.2 |
| Magic | 1.0 |
| Matav | -0.9 |
| Nice | 1.8 |
| Partner | -1.8 |
| Teva | -1.2 |
| Tower | -2.1 |
*%change required in Tel Aviv to meet New York closing price
Published by Globes [online] - www.globes.co.il - on 24 November, 2002