Easy go, easy come back: TASE bounces on huge turnover
Banks index climbed 2.2%, screens were green as stocks rebounded from Thursday 'Sharon slump'
Easy come, easy go, they say, but today the Tel Aviv Stock Exchange reversed that natural of affairs and corrected half its loss suffered after Prime Minister Ariel Sharon collapsed on Wednesday last week.
The "Sharon effect" cut share prices by 4% on Thursday, though that morning losses had been greater than 6%. Today, Sunday, as Sharon remains in coma at the Hadassah Hospital in Jerusalem, the TA-25 index rose 2.1% to 833 points, the TA-100 index bounced by 2.3% and the TelTech-15 index added a steep 3.2%.
Turnover was very heavy for a Sunday at NIS 1.5 billion.
The day began with gains of about 1.7%, propelled by the banks, which ended the day 2.2% higher. Just as the screens were painted red on Thursday, today's color was green across the board.
The trend will become clearer from tomorrow, when foreign investors come back from their weekend and Xmas holidays. Today there was no trade in the forex market, but bonds shot up. Long-term Shahars gained 0.35% with yields dropping to 6.2%. Linked Galils rose 0.64%, while yields dropped to 3.83%.
Hapoalim rose 2% on tremendous turnover of NIS 390 million, the biggest of the day. Leumi gained 3.3%.
Teva was responsible for the day's third highest turnover. It increased 1.3%. Israel Chemicals gained 2.9% and Makhteshim Agan rose 1.1%.
Real estate stocks soared remarkably. Alrov gained 12% and Golan charged ahead by 19% Delek Real Estate, Habas and Ocif each rose in the range of 5% to 7.2%.
This morning Union Bank strongly counseled investors to diversify their portfolios with overseas securities. Some 40% of the stock component should be foreign, the bank advised. At home it likes exporters less dependent on the local market that still have value to offer over the long run, and named stock picks ICL, Ormat, Makhteshim Agan and Africa Israel, all of which are highly exposed to overseas.
Discount Investment rose 3.9% after announcing that subsidiary Cellcom is paying its shareholders a NIS 1.7 billion dividend. Nice: Discount Investment owns 94.5% of Cellcom and is in line for NIS 1.5 billion. Its parent company IDB Holding Corporation, which announced buying NIS 25 million worth of IDB Development stock today, rose 1.4%.
While on holding companies, Delek Group climbed 5.1% and The Israel Corporation advanced by 2.5%.
Inspire Investments gained 0.2% after announcing that it is buying 50% of wet wipes maker DPL for NIS 18.7 million.