Bank Hapoalim shares dipped into the red on huge volumes this morning, after a share lock-up from a major employee savings plan ended today. Employees are now eligible to able to sell 55 million Hapoalim shares, worth about NIS 330 million at current prices.
Hapoalim shares fell 3% at the opening on a NIS 50 million turnover. Half an hour later, at 10:15 a.m. Israel time, the stock was down 2.2% on a NIS 80 million turnover. Average daily turnover in the share is NIS 16.2 million.
Separately, Hapoalim said in a statement to the TASE this morning that the workforce reduction program at the bank would cost NIS 510 million, and that it would post the charge in its fourth quarter report. The cost savings from the layoffs will amount to NIS 200 million a year, the bank said.
There are also concerns that Hapoalim may have to write down loans it gave to medical laser company Lumenis (Nasdaq: LUME), which owes the bank over $170 million and continues to draw on a Hapoalim credit line to stay alive.
Yesterday, Lumenis shares dropped below $1 on Nasdaq and closed at $0.96, reflecting a $36 million company value.
In the foreign exchange market, the shekel has advanced to NIS 4.862/$, a 0.25% appreciation since Tuesday. The gain comes in the wake of reports that Prime Minister Ariel Sharon had expanded his coalition to 68 out of 120 Knesset members, after concluding a deal with the ultra-nationalist HaIhud HaLeumi party.
Hebrew daily “Yediot Ahronot” reports that Sharon yesterday approved an emergency economic plan, which will be presented to the US Administration as part of Israel’s request for special grants and loan guarantees.
According to the report, the plan calls for a cut of between NIS 9.5 and NIS 14.5 billion in the state budget and a series of reforms in the capital and labor markets. Israel also promises that its budget deficit will not exceed 3% of GDP.
On the TASE, the Tel Aviv 25 index is currently unchanged at 305.9 points, the Tel Aviv 100 is unchanged at 313.9 points and the Tel Tech 15 index is down 0.06% at 170.17 points. Turnover totals NIS 94 million, with the vast majority of that accounted for by Hapoalim trades.
Dual-listed Teva (Nasdaq: TEVA) is rising 0.6% on a 0.2% positive arbitrage gap.
“Globes” reported on Tuesday on generic-Remeron, an anti-depressant that Teva launched two weeks ago. According to the report, the launch was extremely successful, and the anti-depressant could contribute $20 million to Teva’s first quarter profits.
Meanwhile, Bank Leumi is down 0.3% and Bezeq is up 0.4%, with both shares trading on low volumes. Oil exploration company Givot Olam Energy is up 16% after jumping 200% in three days.
Three days ago, Givot reported finding formation droplets of oil in the Meged 4 prospect, near Rosh HaAyin.
Published by Globes [online] - www.globes.co.il - on 26 February, 2003