Stocks tumble at opening

Dual-listed stocks opened on wide arbitrage gaps after falls in New York on Friday, and the banks are also sharply down.

The opening of trading on the Tel Aviv Stock Exchange was delayed by a few minutes this morning because of volatility in the share prices of Opko Health and Liveperson in the pre-opening stage. The two were among several dual-listed stocks that opened with large negative arbitrage gaps after the falls in New York on Friday. Opko Health had a negative arbitrage gap of 9.9%; Liveperson 13%; Nova 4.5%; Kenon 3.7%; and Ormat 3.1%. The weighted arbitrage gap for Tel Aviv 35 Index stocks was 1.3%.

The leading indices have fallen sharply this morning. The Tel Aviv 35 Index is down 3.25%; the Tel Aviv 125 Index is down 3.37%; and the BlueTech Global Index is down 2.90%. All the leading stocks are down sharply: Bank Leumi is down 3.76%; Mizrahi Tefahot Bank is down 4.14%; Delek Group is down 3.17%; Discount Bank is down 4.29%; and Bank Hapoalim is down 3.51%.

Last week, the Tel Aviv 35 Index fell 0.8%.

The shekel weakened significantly against the US dollar on Friday. The representative shekel-dollar rate was set 1.11% higher, at NIS 3.3750/$. Against the euro, the shekel strengthened very slightly, and the representative rate was set 0.03% lower, at NIS 3.5827/€.

In the US, Consumer Price Index figures released on Friday showed annual inflation running at 8.6%, the highest rate recorded since December 1981. The US Federal Reserve is due to announce an interest rate decision on Wednesday. Most analysts expect a rate hike of 50 basis points, but Jefferies and Barclays are predicting a hike of 75 basis points following the high inflation figure for May.

US stock indices fell sharply on Friday after the inflation figures were released. The S&P 500 closed off 2.91%; the Dow Jones was off 2.73%; and the Nasdaq 100 was off 3.56%.

Published by Globes, Israel business news - en.globes.co.il - on June 12, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018