Last update - 00:00 09/01/2007
Lukewarm HSBC report cools off markets, just a little
By Tal Levy
A report by investment bank HSBC cooled off capital markets yesterday, which had opened higher but still managed to pull out gains for the day. The TA-25 eked out a 0.1 percent gain to close at 933.20 points, while the TA-100 added 0.3 percent to end at 941.40 points. The Tel-Tech 15 did somewhat better, rising 0.5 percent to 373.15 points.
The report stayed neutral on the Isarel, stating, "Overall, we struggle to come up with many strong positive recommendations in the country. Our preferred sectors are telecoms and chemicals, but the Israeli market remains a convincing and heavy underweight."
Teva Pharmaceutical Industries (TASE:TEVA) jumped 1.7 percent, after receiving a buy rating and a target price of $50 from WR Hambrecht. Its current price is $32.
Major banks fell out of favor yesterday, as Bank Hapoalim (TASE:POLI) lost 1 percent and Bank Leumi (TASE:LUMI), which extended CEO Galia Maor's contract yesterday, fell 1.4 percent.
Elbit Systems (TASE:ESLT) closed down 0.6 percent after the company announced yesterday that it had signed an $58 million deal to supply the Belgian army with unmanned turrets and electro-optic systems for armored vehicles.
The Delek Group (TASE:DLEKG) shares moved up 1.7 percent after winning two recommendations yesterday - a buy from Meitav, which began coverage of the group, and from Clal Finance.
Real estate stocks bounced back yesterday, with Alrov Properties and Lodgings (TASE:ELRO) leading the way. Alrov soared 8.9 percent. Africa Israel (TASE:AFIL) gained 0.8 percent. On Sunday, the company completed an NIS 75 million deal for 23.5 percent of Packer Plada to raise its controlling stake to 65.7 percent.
Minrav (TASE:MNRV), which shot up over 20 percent Sunday, added another 8.1 percent yesterday. The company confirmed a report in TheMarker that Arcadi Gaydamak was considering to acquire control of the company, which is worth $90 million.
Alony Hetz Properties and Investments (TASE:ALHE) leaped 2.6 percent after announcing it would sell its 43 percent stake in Ogen Real Estate for NIS 250 million at a 22 percent premium over its market value. The deal will fetch Alony Hetz a pre-tax profit of NIS 140 million.