The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 index closed up 0.17% at 528.81 points, the Tel Aviv 100 index rose 0.26% to 558.69 points, and the Tel-Tech 15 index rose 0.55% to 395.91 points. Turnover totaled NIS 486 million.
The TASE started out the day with moderate rises, but quickly retreated to the vicinity of its starting point. The market dropped suddenly around noon, when a car explosion in Ashkelon was reported. Soon after, however, the police announced that the bomb was a criminal, not a terrorist act, and the market immediately corrected upwards, and wound up the day slightly ahead.
Teva recovery continues
The Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) share continued its recovery today on the TASE with a 2.4% gain, following yesterday’s 4.3% leap on Nasdaq. Because of the Labor Day weekend in the US, yesterday was the first chance for investors to respond to Teva’s plan for a $300 million buyback.
Another matter contributing to Teva’s rise today was its strategic cooperation with IMPAX Laboratories. The two companies announced today that they had begun marketing of 20 mg Omeprazole delayed release capsules, a generic version of AstraZeneca’s Prilosec, a drug for treating ulcers and gastro-esophageal reflux disease (GERD). AstraZeneca’s sales of 20mg Prilosec totaled $1.2 billion over the past twelve months.
Nevertheless, IBI analyst Elah Alkalay says that this news is not very significant for Teva: “Estimates are that 80% of current sales of the product are generic.”
Tshuva selling off Delek shares
UBS has offered to buy Delek Group (TASE:DLEKG) shares from Yitzhak Tshuva for NIS 50 million. The shares, which were purchased at NIS 370, 0.6% below the share’s opening price, were distributed mostly to UBS clients; only a few were scattered among investment institutions, mostly foreign.
Following the deal, turnover in the Delek Group share reached a high NIS 33 million, while its price remained unchanged at NIS 372.
The major bank shares continued to draw attention today, while gaining ground. Bank Hapoalim (LSE:BKHD; TASE:POLI) rose 1.8% on a NIS 57 million turnover, the largest on the TASE. Towards the end of trading, Bank Hapoalim announced plans for another share issue by Signature Bank, its New York subsidiary, following the successful issue at the beginning of the year. Signature Bank plans to raise $150 million in the new issue.
Bank Leumi (TASE:LUMI) was up 0.8%. As far as is known, foreign concerns have begun accumulating bank shares in recent days, following a series of good recommendations for them by UBS and others.
Incidentally, keep in mind that the Bank Hapoalim share, which has picked up 20% this year, currently reflects a 6% premium on the bank’s shareholders’ equity, while the Bank Leumi share, which has rise a mere 13% in 2004, still reflects a 14% discount on Bank Leumi’s shareholders’ equity. This overhang is due mostly to the state’s plans to complete privatization of the bank by distributing options to all Israeli citizens, among other methods, and to concern that the balance of shares (less than 5%) held by Migdal Insurance (TASE:MGDL) will also be put on the market, following the sale of s Bank Leumi shares several months ago.
Possible control battle in Tadiran Communications
Sources inform “Globes” that three groups are interested in taking over Tadiran Communications (TASE:TDCM), which not long ago itself tried to take over Elbit Systems (Nasdaq:ESLT; TASE:ESLT). Now Elbit Systems itself is apparently one of the bidders.
In any case, there will be little boredom in either Tadiran Communications or Elbit Systems in the near future. The Tadiran Communications share was off 0.8% today on a lively NIS 18 million turnover, while Elbit Systems slid 1.1% on a huge turnover (for the share) of NIS 34 million.
Chemical shares Israel Chemicals (TASE:CLIM) and MA Industries (Makhteshim Agan) (TASE:MAIN) have been weak in recent days. On the other hand, analysts covering the two companies say that their situation has never been better. Both companies reported record results for the second quarter, and both continue to benefit from high prices in their target markets (mostly the agricultural market).
That made no difference, however, to Israel Chemicals, which lost 1.7% today, thereby continuing a 10% decline since the share’s peak in June. MA Industries, which won a positive review from Clal Finances Batucha only yesterday, dipped 0.4% today, and has now sunk 13% since its June peak.
Published by Globes [online] - www.globes.co.il - on Wednesday, September 8, 2004