UBS: Israel a defensive play during uncertainty

UBS

Analysts for the Swiss investment bank stress that the economic data in Israeli is comparatively good.

While global markets are plagued by the recent volatility, UBS analysts are recommending Israel as a defensive play during the financial uncertainty. Roni Biron and Margarita Streltses published a special report on Tuesday showing that the economic data in Israel is good comparatively.

The UBS analysts noted that the Israeli economy grew by close to 3% in 2014, the unemployment rate was under 6%, the budget deficit stood at 2.8%, and a current account surplus of 3.7%. The Swiss investment bank also cited the "strength and stability" of the local currency, which they believe to be supported by the natural gas findings and the government's proactive monetary policy.

The UBS report claims the domestic business sphere must deal with high levels of regulations and that the country's financial market is influenced by a variety of geo-political events, citing the two as some of the risks facing the Israeli economy.

The Swiss bank recommended defensive investments in companies like Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF), and the Israeli banks.

Published by Globes [online], Israel business news - www.globes-online.com - on August 26, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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