The share price of German auto manufacturer Volkswagen plummeted almost 30% last week, with the company market cap dropping €17 billion to €58 billion on the German stock exchange. Volkswagen has been the focus of public attention, after the company admitted committing fraud for years in the air pollution tests of its diesel vehicles in the US. Volkswagen installed software making it possible to artificially reduce the results of official tests for emissions of polluting gases. The company thereby exposed itself to potential fines amounting to billions of dollars. Volkswagen's CEO resigned.
The drop in the Volkswagen share price also affected Israeli investment institutions holding Volkswagen shares. An examination by the stocker.co.il website showed that Israeli investment institutions held Volkswagen shares worth an aggregate NIS 226 million, the value of which fell by 29%, amounting to NIS 66 million, in recent days.
Altshuler Shaham Ltd. held Volkswagen shares worth NIS 141 million before the share price fell, leaving the company with a loss on paper of NIS 41 million. The next worst loss was by Meitav DS Holdings Ltd. (TASE:MTDS), which lost NIS 11 million on paper.
Smaller losses were suffered by the State Employees Advanced Training Fund (NIS 650,000) and Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) (NIS 457,000). Altshuler Shaham was also the biggest loser among the mutual funds. Its funds held Volkswagen shares worth NIS 12.2 million, meaning that its loss on paper was NIS 3.5 million. Migdal Insurance and Financial Holdings Ltd.'s (TASE: MGDL) mutual funds lost a similar amount. Others among the big losers included Psagot Investment House Ltd. (a NIS 2.7 million loss) and Ayalim Mutual Funds (NIS 1.7 million). The mutual funds of Analyst, Meitav DS, Poalim IBI Underwriting and Investments Ltd. (TASE:PIU), and Alumot Sprint suffered losses on paper varying from tens of thousands to several hundred thousand shekels.
Published by Globes [online], Israel business news - www.globes-online.com - on September 24, 2015
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