The Tel Aviv Stock Exchange ended lower yesterday, taking its cue from Wall Street's direction over the weekend.

The TA-25 index of blue chips closed down 0.2% at 1,216.77 while the TA-100 dropped 0.3%% to finish at 1,082.59. Both indices posted 0.8% increases for the week.

The TA-Banking index, which dropped on Wednesday, rebounded yesterday to advance 0.3% to 1,079.74, all on paltry turnover of just NIS 504 million. The Real Estate-15 index declined 0.2% to 285.91 while the TA-Banking index dropped 0.5% to a close of 1,084.84.

The Oil and Gas index ran against the trend, rising 0.4% to 1,121.17, led by a 2% advance for Ratio, a 1.5% rise for Avner and a 9.4% jump for Shemen Oil & Gas.

U.S. stocks ended an unusual storm-shortened trading week with a selloff on Friday, as shares erased early gains sparked by a stronger-than-expected payrolls report.

Government data showed employers added 171,000 people to their payrolls last month, topping expectations. The jobless rate ticked up to 7.9 percent as more workers restarted job searches, a positive signal for the economy. But for that very reason, investors feared that the U.S. Federal Reserve will have less of an incentive to continue economic-stimulus steps.

Yaniv Pagut, chief strategist at the Ayalon Group, said investors are concerned about the outcome of American elections on U.S. fiscal policy.

"Without reference to the identify of the winner, it seems that the closely matched contest will give an excuse for Republicans and Democrats to draw blood in the struggle over the fiscal cliff in the time left till December 31," he said. "We believe the level of tension over spending cuts and raising taxes is going to rise, which will manifest itself in volatile markets."

Israel Chemicals and its parent company, The Israel Corporation, continued to serve as the focus of investor attention yesterday amid continuing speculation about a possible takeover bid by Potash Corporation of Saskatchewan. ICl slumped 2.4% on volume of NIS 70.3 million, making it the most heavily traded stock of the day. Israel Corporation was down 3% following a report yesterday that no agreement between PotashCorp and the Israeli government had been reached.

Technology shares were generally lower, with the BlueTech 50 index down 0.2% for to 330.13. But computer translation company Babylon gained 3.2% ahead of its expected offering in the United States. Mellanox climbed 4% on arbitrage tradings it recovered from disappointing third-quarter earnings reported three weeks ago.

EZChip closed 3.6% up ahead of its quarterly results this Thursday. Harel Finance lowered its target price for the company's U.S.-traded shares to $36 and tagged in a Market Outperform.

Yitzhak Tshuva's Delek Group ended 0.8% higher. Over the weekend Delek Logistics Partners, a unit of the group's Delek U.S. Holdings sold eight million common units for $21 each, at the top end of its projected price range of $19 to $21. The units jumped more than 6% in their first day of trading on the New York Stock Exchange.

Teva Pharmaceuticals advanced 1.6% on turnover of nearly NIS 36 million, in second trading session after reporting third-quarter earnings last week that beat analysts' expectations.

Reuters and AP contributed to this report.