The strong optimism on Israel's capital market in the final weeks of 2004 is expected to continue into 2005. The Tel Aviv Stock Exchange (TASE) and overseas bourses are expected to continue rising next year, according to the annual "Globes" money survey of investment managers.
84% of TASE traders predict that the Tel Aviv 25 index will still be above 600 points at the end of 2005. A third of the respondents predict that the Tel Aviv 25 index will reach 626-650 points at the end of 2005, and another third predict that it will reach 601-625 points.
Respondents are also optimistic about the US markets. The average prediction for Nasdaq is a rise from the current 2,160 points to 2,314 points by the end of 2005. The average prediction for the Dow Jones Industrial Average is a rise from the current 10,500 points to 11,166 points by the end of 2005.
As expected, the majority of respondents recommend stocks as the best investment instrument next year. Most recommend in Tel Aviv 75 index stocks, with Tel Aviv 25 index stocks in second place.
The euro is in seventh place, despite, or maybe because of, its sharp rise over the past year. As expected, the least recommended are CPI-linked instruments, because of low inflation, and dollar-linked instruments, because of the dollar's plunge against other currencies in the past year.
Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) was the most popular share in the survey. The least popular share was Osem Investments (controlled by Nestle (SWX:NESN)) (TASE:OSEM).
In a breakdown by sector, technology and chemicals shares, including pharmaceuticals, held the lead.
Published by Globes [online], Israel business news - www.globes.co.il - on December 28, 2004