The Tel Aviv Stock Exchange (TASE) fell today. The Tel Aviv 25 index was down 1.21% at 657.63 points, the Tel Aviv 100 index fell 1.43% to 662.04 points, and the Tel-Tech 15 index fell 0.80% to 400.43 points. Turnover totaled NIS 2.019 billion.
The shekel depreciation against the dollar and the euro continued today, due to concern about the survival of the government, and alarm that the disengagement plan would take be carried out under fire.
The shekel-dollar exchange rate soared 0.89% to NIS 4.54/$, its highest level this year. The rate has rise by NIS 0.135/$ since June 9, a 3.1% shekel depreciation against the dollar. Spot foreign currency transactions were estimated at $2 billion, an all-time record.
The shekel-euro exchange rate also continued its upward correction today, skyrocketing 1.53%, its steepest rise in recent years, to NIS 5.5431/€. Since last Thursday, the shekel-euro exchange rate has risen by NIS 0.144/€, a 2.7% rise.
Sharp declines in share and bond instruments continued on the capital market today for the fifth straight day. Small-cap shares continued to lead the bear market, joined by the Tel Aviv 25 index shares, which fell more steeply than in recent days. The bond market also continued its plunge in shekel instruments.
Despite high trading volume, following selling on the part of mutual funds, most veteran traders in the market believe that high prices in recent months, combined with the approaching disengagement date, are mainly responsible for the wave of selling.
At the same time, the price of oil hit an all-time record of $60 a barrel in the US. Gasoline and diesel fuel prices at filling stations in Israel are expected to jump 7-9% at the beginning of July, assuming that global oil prices do not change.
No significant news from companies was forthcoming in the market today, and if there was any, it didn’t manage to change the direction of trading. Bank Leumi stood out among the bank shares with a 4% slide, following Knesset Finance Committee approval of the plan to distribute its shares to the public. The atmosphere in trading in the other bank shares was also depressing; Bank Hapoalim lead the pack with a 1.5% loss.
Of those with good news to tell, Israel Chemicals is worthy of mention. The company announced that it was raising the prices of its bromine and bromine products by up to 30%, but nevertheless fell 2%. NICE Systems reported an order for its products in India, and dipped 0.1%. Electra said that it planned to float is Electra Real Estate subsidiary, and still dropped 0.3%.
Of the leading shares, Teva went up 0.5%, MA (Makhteshim-Agan) Industries shed 2.5%, and profit taking in Africa-Israel Investments continued, with the share tumbling 4.4%. Among the IDB group shares, Discount Investment Corporation took center stage with a 2.7% dive. On the other hand, Osem-Nestle continued its winning streak with a 2.5% gain.
Of the medium-sized shares, El Al Airlines continued to suffer from the rise in oil prices, plummeting 5.2%. Real estate shares were also down sharply, with Danya Cebus dropping 5.4% and Property and Building 4.2%. Elbit Medical Imaging also continued its slide, after reporting the conversion rate for its share swap with Elscint, and wound up 4.2% lower on the day. Delek Automotive Systems sank 3.8% on the ex-date for its dividend.
Things also went poorly among the Yeter index shares, with the Yeter 30 index losing 16% since the beginning of June. Two prominent losers were Arazim Investment (8.3%) and Rabintex Industries (5.8%).
I’ll wind up with medical devices company Medcon Telemedicine Technology, which put an end to speculation today by announcing its sale to US healthcare company McKesson Corporation. The Medcon share, which climbed 2.9% today, will be sold at $105, a premium of almost 40% on the market price.
Published by Globes [online] - www.globes.co.il - on June 20, 2005