Subscribe to Print Edition | Thu., January 08, 2009 Tevet 12, 5769 | | Israel Time: 02:02 (EST+7)   Back to Homepage web haaretz.com Haaretz Toolbar Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Haaretz Magazine Business Real Estate Joy of Giving Travel Week's End Anglo File

Israel stocks join world markets in rally By TheMarker Correspondent and Staff , By Nathan Sheva Tel Aviv shares roared north yesterday for the seventh straight day of trading, despite the drag of the battles raging in the south. Traders who can't actually explain the rebound on the basis of any concrete developments generally ascribe the surge to the "January effect," referring to an oft-believed yet empirically impure assumption that share prices rise in January. Sometimes they do, sometimes they don't. This January, stocks have been rising even as Israeli ground forces roll deeper into the Gaza Strip. Advertisement Back in Tel Aviv, blue chips rose strongly yesterday, gaining more than 3% on fairly brisk trading, relative to the thin turnovers posted in recent weeks. "The mood in the market was good today," said one investment manager. "The positive sentiment even led institutional investors" - which means big investment funds and insurance companies - "to move from the safe harbor of government bonds to riskier vehicles such as corporate bonds and shares." Whence the cheer, given that nobody thinks the global economic crisis is over yet or even turning a corner? Good question, but the fact is that foreign markets have also been rallying strongly. Oil prices have too, but yesterday the price per barrel slipped below $50 again, on more weak U.S. economic data and as traders took profits following a one-month high hit earlier in the day. London and other European indexes closed higher yesterday, for the sixth trading day in a row. Tokyo's benchmark Nikkei index ended with mild gain. Hong Kong ended a three-day rally because of a rout among Chinese telecoms stocks. Here in Israel, morale among investors is high because the fighting in the south is going as planned, says the investment manager. "Also, there's optimism over [U.S. president-elect Barack] Obama's move into the White House later this month." Obama's no magician He for one doesn't believe the upward run will continue much longer, though. "At some point the market is going to understand that Obama is not a magician," he said. "The trouble isn't over yet." The benchmark TA-25 index gained 3.4%, to end yesterday at 702 points, and the broader TA-100 index rose 4%, to 618 points. The TelTech-15 ended the day 5.5% higher and the Real Estate-15 index jumped 8.3% yesterday, bringing its total gain this year to 18%. That's some rebound in less than a week, and brings sorely needed relief to investors in the sector in which heavyweight stocks lost 80% and more last year. Israeli property [prices hadn't been considered to be in bubble territory, but many large real estate companies invested heavily abroad. Total turnover crept up to NIS 1.3 billion. The session was characterized by strong gains among several heavyweights, including Israel Chemicals and Makhteshim Agan, which have been favorites among foreign investors for years. Shares of Israel Chemicals soared 10%, on robust turnover of NIS 200 million, thanks to a strong rally by fertilizer stocks in world markets. A modest increase was also seen in seed prices. Makhteshim Agan Industries, which makes pesticides, gained a whopping 9.8%, sending the share price of its holding company Koor Industries soaring 13%. Africa Israel did a star turn on the spiraling Real Estate-15 index yesterday, leaping 10.2%. After months of rumors, Yali Shefi, chief executive of the Phoenix assurance company, announced his resignation after a four-year tenure. Investors seemed undismayed and sent Phoenix stock soaring 12%. The price of Delek Automotive shares regained 2.9%, after two days deep in the doghouse, during which time the Mazda and Ford importer's stock lost 10%, following press reports of dreadful sales in December. For more on the impending fortunes of car importers, see Page 11. Ormat Industries leaped 10.6% on news that the Swiss investment bank UBS had upgraded its rating for subsidiary Ormat Technologies to Buy. The analysts set Ormat Tech a 12-month price target of NIS 33, which is 28% above market. Another stock in the spotlight was Aladdin Knowledge Systems, which leaped 43%, on reports that the firm is, after all, going to be sold, possibly for as much as $160 million. That's double its market cap, before yesterday's jump. Bookmark to del.icio.us   Humanitarian initiative There is a way for Israel to prove it is committed to universal moral values. Top Targets An Islamist site is compiling a list of U.K. Jews to target over Gaza op.

Read & React Bradley Burston / A Jew's prayer for the children of Gaza Responses: 52 IDF: Shelled UN school in Gaza used as hideout by Hamas Responses: 100 ANALYSIS / Using aggressive tactics in Gaza to save soldiers' lives Responses: 23 Venezuela's Chavez: Gaza operation is a Palestinian 'holocaust' Responses: 26 Amira Hass: Lucky my parents aren't alive to see Israel bomb Gaza Responses: 40 More Headlines 23:29 Israel bombs south Gaza tunnels, tells local residents to flee 01:09 Barak: If cease-fire deal doesn't meet Israel's demands, Gaza operation will continue 21:55 Clashes resume in Gaza City after 3-hour humanitarian truce 22:58 Rice: Gaza truce needed, but must not allow return to 'status quo ante' 18:30 Defense sources: Even if Hamas agrees to truce, its armed wing may resist 23:37 25 Gaza rockets strike Negev over course of Wednesday 21:27 Obama vows to 'engage immediately' on Mideast once inaugurated 12:57 A Jew's prayer for the children of Gaza 18:20 Get up to the minute coverage of the warfare in Gaza directly to your email 11:35 ANALYSIS / Israel must double, triple, quadruple its medical aid to Gaza 14:34 Report: Islamist site compiling list of U.K. Jews to target over Gaza op 20:40 In battle for public opinion, IDF Web site puts female face forward 16:14 Israel defers vote on expanding Gaza ground op amid growing truce bids 22:00 Joe the Plumber named conservative Web site's war correspondent in Israel 14:53 Nasrallah: Hezbollah will make Lebanon war look like 'a walk in the park' 01:51 German court rules Nazi hit man unfit to stand trial 01:24 IDF reserve forces receive fictitious calls for duty in Gaza 21:35 WATCH: Former Israeli Ambassador to the U.S. Zalman Shoval on Gaza conflict 21:33 U.S. rabbi raises $100,000 to buy care packages for IDF troops in Gaza 14:19 Amira Hass / 86 hours after Gaza home shelled, family still lacks medical aid Previous Editions Select Day 07 jan 06 jan 05 jan 04 jan 02 jan 01 jan 31 dec 30 dec 29 dec 28 dec 26 dec 25 dec

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