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.
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