The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 index was up 0.07% at 646.93 points, the Tel Aviv 100 index rose 0.21% to 669.36 points, and the Tel-Tech 15 index rose 0.41% to 418.33 points. Turnover totaled NIS 478 million.
Trading on the TASE was very slow-paced today, with foreign players, mostly from Europe, taking a day off for Easter.
The trend in blue chip shares today was mixed, with no clear direction. Bank Hapoalim was up 0.5%, but Bank Leumi fell by 0.2%, both on much lower than average turnovers.
Teva, which jumped 3.2% on a lively volume yesterday, inched up 0.2% on a light volume today. The company announced yesterday that it had received conditional approval for its generic version of a Pfizer drug with a $2.4 billion market in the US. The new drug is expected to contribute $200 million in revenue and $30 million in net profit to Teva when marketing begins in 2007.
The Africa-Israel Investments share started out today by responding to the company’s excellent report for 2004. "Globes" predicted over a week ago that that the company would report a NIS 400 million profit. The company actually reported a NIS 405 million net profit, 235% more than in a 2003.
As expected, Africa-Israel reported today that it would distribute a NIS 200 million dividend (NIS 4.24 per share) - half of its profit. The ex date is April 4, and the distribution date is April 17. The trend in the share today was positive, but it fell to 0.2% below its starting point by the end of the day, after having risen by 3.2% in the two preceding days.
Record year for IDB
2004 was a record year for IDB. A long string of sell-offs of holdings by various companies in the group produced an impressive NIS 1.05 billion profit for IDB Development, which handles all the group’s holding company activity, and a NIS 595 million profit for IDB Holding, the group’s roof company. IDB Development’s 2003 profit was NIS 133 million, and IDB Holding’s was NIS 2 million. In addition to record profits, the two companies announced the expected generous dividends for their shareholders.
The trend in the IDB group shares was mixed. Discount Investment Corporation was down 0.9%, Clal Industries and Investments lost 0.7%, and IDB Holding slipped 0.3%, while IDB Development picked up 0.6%.
The Israel Corporation rose by 1.9% today. The company will publish its results tomorrow, as will its main subsidiary, Israel Chemicals. Both companies are expected to report record results. Zim Israel Navigation reported its initial results today, including a NIS 171.8 million net profit. Israel Corporation gained 1.9% today, and Israel Chemicals 1.8%.
Harel Insurance Investments also published good results. The company posted a NIS 406 million net profit in 2004, compared with NIS 401 million in 2003. Harel’s profit from insurance business was the highest so far in the industry NIS 685 million. The company’s share rose by 0.1% today.
Polgat soared 9.7% today, after a court approved its huge NIS 152 million dividend.
Quite a bit has been written about Tower Semiconductor and its Fab 2, which has become a bottomless money pit. The Ministry of Industry, Trade, and Labor today announced that the company’s major shareholders had met with Minister of Industry, Trade, and Labor Ehud Olmert. The company’s owners undertook to invest $30 more in it to give it a breathing space.
Investors, who have seen the share lose 80% of its value in one year, may be giving it another chance. Tower was up 6.9% today, but the road back up is a long one, and the company’s bonds are still being traded at a super junk yield of 37%, index-linked.
Published by Globes [online] - www.globes.co.il - on March 28, 2005