Global equities surge lifts Israeli stocks

Israeli stocks powered ahead yesterday in keeping with a strong global uptick, propelled by strong manufacturing data from the United States and China, the world's two biggest economies.

Share prices rose strongly throughout Europe, with London's benchmark FTSE-100 index and Frankfurt's DAX rising 2.7%, the Paris CAC-40 outdoing both with a 3.8% leap and U.S. stocks posting gains of 2% to 3% as of mid-session in New York.

U.S. T-bills and gold both beat a retreat yesterday as investors ventured out of safe harbor for the rougher ride of stocks. Investor confidence was boosted by surprisingly strong U.S. and Chinese manufacturing data. The key catalyst was the widely watched U.S. Institute for Supply Management manufacturing index, which rose to 56.3 in August, beating economists' consensus forecast for a fall to 53.

"All of a sudden the economic world is not coming to an end, and that is sharpening the appetite for risk assets," David Dietze, chief investment strategist at Point View Financial Services, told Reuters.

Over in Tel Aviv, the benchmark TA-25 index gained 1.7% to 1,154 points and the broader TA-100 index advanced the same percentage to close at 1,064 points. The Banks-5 index gained 1.6%. Turnover was on the thin side at NIS 1.5 billion.

Among the sharpest gainers yesterday were oil and gas stocks: Isramco advanced 4.3% and Ratio Oil & Gas Exploration soared 10.6%. Modiin gained 7% and Avner rose 5%. Market animals had no particular explanation for the gush.

Then there's Rabintex, which fell 4% after reporting weak results for the second quarter (see Page 8 ).

The banks also surged after filing strong quarterly results earlier this week. Hapoalim closed 1.5% higher, Leumi gained 1.8% and Discount added 2.5%. Against the trend, Beinleumi lost 1.7%.