The leading stock indices abroad and in Tel Aviv clearly demonstrated "inverse correlation" yesterday. While the European indices rose, the Maof index of leading stocks on the local exchange took a downward turn.
The FTSE 100 gained 1 percent while the DAX in Frankfurt registered a 0.8 percent hike.
The Maof was feeling low on opening, and by noon, it had lost 1.3 percent. The index rallied before day's end, closing down only 0.5 percent.
This last-minute recovery was more surprising given that the IMF had just released updated forecasts on the Israeli economy, predicting a mere 0.3 percent growth this year and 1.7 percent in 2002. (For full story see page 6).
Total turnover on the Tel Aviv Stock Exchange reached NIS 224 million yesterday. Hapoalim turnover was NIS 53.7 million, down 1.2 percent. The bank has lost about 20 percent of its market value in the past four months, and is trading at only 83 percent of its shareholders equity. The bank is also completing its takeover of Mishkan, its mortgage bank subsidiary, based on a sum of NIS 205 million.
Hapoalim holds 98.18 percent of Mishkan's issued capital, but once Hapoalim's holdings exceeded 95 percent, it was obliged to buy out the remaining stakes. Once the sale is completed, Mishkan's shares will be delisted. Mishkan is one of the country's largest mortgage banks with net profits in the first nine months of the year of NIS 89 million, down from NIS 120 million in the same period last year.
Hapoalim began buying up Mishkan shares at the beginning of 2001, denying at the time it intended to buy the firm outright.
However, three weeks ago, when its holdings reached 84.92 percent, it announced intentions to buy out Mishkan, offering NIS 925 for each remaining share, a figure it upped last week to NIS 1,107.
Leumi slipped 0.5 percent on turnover of NIS 10.5 million. Elbit Systems gained 1.3 percent on NIS 18 million volume, completing a 7.3 percent rise in December.
Much of yesterday's trading apparently was explained by Maof players positioning themselves for the expiry of December Maof options next week.
Turnover in bonds was high yesterday, with volume reaching NIS 738 million. Trading on the fixed rate Shahar shekel bonds was particularly volatile, though the 2670 series finished the day down 0.26 percent on a very high turnover of NIS 148.7 million, setting the yield at 6.4 percent.
The Shahar 2680 series similarly fell yesterday on volume of NIS 46.5 million. At its peak, the bond gained 0.1 percent, but as soon as rumors of the break up in negotiations over the economic package deal came in, the bond fell back to earth.
