Out of the CEEMEA group, Israel and Russia look in relatively good shape from the perspective of equity prices, says Citigroup, that referring to the Central Eastern Europe, Middle East, Africa group.

"South African equities look particularly expensive relative to debt," Citigroup writes, while earnings-yield ratios have deteriorated in Hungary, Poland and the Czech Republic. They look better in Israel and Russia, write analysts Andrew Howell and Geoffrey Dennis.

The main thrust of the report is the effect of rising yields on U.S. treasuries, which pressured stock markets the world wide, though emerging markets were spared to a degree.

Inflation in Israel is all but nonexistent, the bank says. "Very low interest rates and reasonable valuations made Israel attractive based on its earnings-yield ratios," the analysts say.

Israel is attractive in the short run, mainly during times of storm in the markets. It loses less ground at such times, Citi says.

The bank's list of high-yielding CEEMEA shares relative to local bond yields includes none other than Bank Hapoalim (TASE: POLI)  and Bank Leumi (TASE: LUMI).