Market Report / Brisk trading as Maof option expires
The Banks-5 index ended the day down 1%, but was trading 2% lower earlier in the trading session. The Real Estate-15, on the other hand, rose 1.5% for the day.
The trading day yesterday opened against the backdrop of the expiration of the December Maof option contract on the Tel Aviv-25 index. It was set at 1,165.74 points, which was 1.7% lower than the close on Wednesday. Over the course of the day yesterday, sharp declines nearly disappeared and trading was higher for a time as investors returned to the market in a big way. The TA-25 index ended the day 0.15% lower, however, at 1,184.12 points on heavy volume of NIS 2.63 billion.
The broader Tel Aviv-100 was 0.17% lower at 1,048.18 points. The Banks-5 index ended the day down 1%, but was trading 2% lower earlier in the trading session. The Real Estate-15, on the other hand, rose 1.5% for the day.
The trading day also appeared to be influenced by continuing concern over the yet unresolved efforts to avoid the fiscal cliff in the United States as the new year approaches.
Among noteworthy developments in share trading was Israel Opportunity Energy Resources, which plummeted by 33% following reports that the amount of natural gas in its Ishai exploration area is lower than initial estimates based on seismic data. Shares in Eden Energy Discoveries, which has an indirect interest in the Ishai license area, declined by 28% for the same reason.
Modiin Energy Partnership shares were off by 20.6% yesterday against the backdrop of rights offering the partnership issued yesterday. TheMarker has learned that the partnership managed to raise NIS 56 million in the offering, although it had hoped to attracted NIS 75 million. Interested parties Tzachi Sultan and the IDB group provided NIS 16 million of the sum. The Oil and Gas index as a whole declined by 2.1% yesterday.
Also notable on the down side were shares of Nochi Dankner's IDB Holding Corp., which fell 11.1% to a market cap of NIS 553 million. The company's bonds, as well as those of IDB Development, declined by as much as 4.4% amid efforts by the IDB group to reschedule debt. In other news relating to IDB, on Wednesday, Discount Investment Corp. announced that Danny Naveh, the former health minister, had joined its board.
A new debt rescheduling agreement became a reality yesterday for Kamor, the troubled real estate and shipping company controlled by Danny Brenner. On Wednesday, the main points of the agreement were hashed out with the company's bondholders and trustees. The deal, which already had the nod from the company's board of directors, calls for repayment to bondholders to be deferred by two years. In return, they will receive shares of the company's stock and Brenner will inject another NIS 10 million into the business.
And a week before the deadline Yitzhak Tshuva's Elad Canada is set to buy back shares in an effort to delist the company. Tshuva apparently realized that the price the company was offering the public was too low and raised it by 12% to NIS 16.60 per share. It closed in trading yesterday at NIS 16.24.