Share prices fell on the Tel Aviv Stock Exchange yesterday, pulled down by energy stocks. Global markets were also well in the red for the day. The benchmark TA-25 index lost 0.5%, to close at 1,113 points, while the broader TA-100 index fell 0.7% to end the day at 991 points. Most of the major indexes were well in the red for the day, though technology shares gave the best showing. The Biomed index rose 0.6% and the TA BlueTech-50 index gained 0.2% - but the Tel Tech-15 index fell slightly. The Banks-5 index dropped by a steep 1.6%, after opening with gains. The Real Estate-15 index lost 1.1% and the TA-Oil and Gas index closed down 4.5% after dropping throughout the trading day. The TA-Insurance index lost 1.7% on continued fears over the situation at Nochi Dankner's IDB group.
Turnover was once again low at only NIS 774 million. August volume was extremely low, averaging NIS 886 million per day, about 40% below the average in 2011.
Large-cap corporate bond indexes were down 0.1% to 0.2%, and government bonds were off a similar percentage for the day. The partners in the Myra and Sarah offshore gas fields took a beating on reports of problems with the test wells, which may turn out to be dry. At the very least, production is expected to be significantly delayed. An announcement on the test results is expected in the next few days. Ofer Nimrodi's Israel Land Development Corp. Energy and Modiin Energy, the partners in the licenses, saw their shares fall yesterday by 28% and 18%, respectively. Other local news weighing down the TASE were questions surrounding the 2013 state budget and the additional spending cuts that are planned for this year. (See story on Page 12. )
The severe volatility of the dollar-shekel exchange rate in recent months has calmed down over the past few days, during which the dollar has been traded in a narrow band around the NIS 4.02 mark. Friday's speech by U.S. Federal Reserve chairman Ben Bernanke is still having its effect, but it is slowly wearing off.
The dollar fell very slightly against the shekel yesterday. The representative rate was set at NIS 4.01, slightly higher than the level for most interbank trading during the day. The euro rose 0.2% against the local currency, to a representative rate of NIS 5.06.
The local movements of the dollar exchange rate are in a large part determined by the greenback's moves in world forex markets, and in particular it is linked to the future of the euro and European markets. But there are those in Israel who expect the shekel to strengthen in any case. "The shekel has a limited potential to strengthen in the short term, but in the long-term view the dollar may once again weaken to the NIS 3.90 level, and possibly even lower," said Prico group CEO Yossi Fraiman.
Asian markets were down yesterday, with Chinese shares returning to levels not seen since March 2009. Hong Kong and the Nikkei fell to their lowest levels in over a month.
European markets also lost ground as investors turned cautious in the run-up to a European Central Bank meeting this week. Traders said concerns remained that any new debt-buying scheme by the ECB might still not be enough to fully address the region's sovereign debt crisis.
Reuters contributed to this report.
