Stocks fell sharply on Monday on the Tel Aviv Stock Exchange, with the major indexes falling over 1%. For once, the lastest fear sending the market down was not the European debt crisis, but events closer to home: the victory of the Muslim Brotherhood's presidential candidate in Egypt, Mohammed Morsi.
A number of foreign institutional investors sold off their holdings in Israeli stocks Monday morning in the wake of the Egyptian election. Among the companies that were affected the most were Osem, which rose 1.7%; Super-Sol, which lost 3.1%; Strauss, which was unchanged for the day; First International Bank of Israel, off 2.8%; and the Delek Group, down 1.1%.
A further Spanish aid request sent European markets falling, which also had its effect on the TASE.
In addition, investors were waiting Monday for local news, and after the market closed the Bank of Israel announced it was lowering July interest rates by 0.25%, to 2.25%, the first drop in five months. The news matched analyst expectations.
The blue chip TA-25 index fell 1.3% on Monday to close at 1,066 points and the broader TA-100 index dropped 1.2% to end the day at 978 points.
All the major indexes were in the red, except for the Biomed index, which rose 0.2%. The TA-Banks index fell 0.7% and the Real Estate-15 index dropped 1.4%. The TA-Communications index once again stood out, for the worse, and dropped another 1.9%, after falling 4.3% on Sunday. The Oil and Gas Exploration index was off 0.1% and the BlueTech-50 index fell 0.6% for the day.
Turnover remained low, but average for recent months, at NIS 959 million for the day.
Large-cap corporate bond indexes were mixed, with the TelBond-60 index rising by 0.15%.
Teva lost 2.5% on profit taking after climbing 11.7% on Sunday following its victory in a key patent case in the U.S. over its flagship Copaxone drug. Teva's volume yesterday was the highest on the TASE, NIS 96 million, over 10% of the entire turnover on the TASE yesterday. Teva turnover on Sunday was also huge, at NIS 165 million.
Shares of the companies in Nochi Dankner's IDB group were mixed. IDB Holdings fell 3.5% yesterday, the day after it rose 8% on news Dankner had personally bought another NIS 5 million of company shares. Discount Investment dropped 4.3% after falling 4.1% on Sunday.
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