Market report / Israel Corp stock soars 7%

Israeli stocks powered ahead yesterday, driven by a rebound in world markets, but total turnover was thin at NIS 1.3 billion, indicating that not many players were jumping into the arena in Israel despite the sharp gains in European and Asian markets and upbeat futures for the New York opening. London shares gained 1.6% and Hong Kong finished the day up 1.8%, while Shanghai closed near a three-month high after gaining 0.5%.

Over here, the benchmark TA-25 index rose 2.5% to close at 1,017 points and the broader TA-100 index gained 2.7% to close at 949 points. The Banks-5 index climbed 3.7% and the Real Estate-15 index outdid the lot, jumping 4.1%.

Israel Corp. stock gained 6.7% after its shareholders approved a rescue for Zim (see Page 8).

Yesterday the Bank of Israel published its quarterly inflation report. Israel's economic turnaround was rapid, the central bank says, and the government's deficit is lower than had been expected by this point in the year. The central bank repeated its forecast for 2009 - zero GDP growth - and reiterated its 2.5% growth forecast for 2010.

Evidently the optimism is spreading: A poll by the market survey company Ziegelman Institute of 200 Israeli managers found that 27% plan to expand their workforces in the first quarter of 2010, and only 10% are planning layoffs.

Onto some stocks: Africa Israel gained 1.1% after losing 7.1% the day before. Its bonds lost an average of 4%. Earlier this week Bank Leumi's equity research arm repeated an Underperform rating for the stock.

Discount Bank gained 4%; nothing like that whiff of scandal, is there? Both the supervisor of banks and finance minister have publicly expressed wonder at the way the controlling shareholder, the Bronfman-Schron group, went about shedding the bank's chairman, who in any case refuses to submissively step down. So much for asking him to.

Teva Pharmaceutical Industries gained 0.5% after the company unveiled mixed results earlier this week. Teva also revised its 2009 earnings forecast to between $3.30 and $3.40 per share, up from its earlier forecast of $3.20 to $3.40. In 2010 Teva expects to net $4.40 to $4.60 per share. We'll see.

Harel Investments gained 2.1% after the company reported that it had completed its acquisition of insurance firm Dikla, which is now a fully-owned subsidiary.

Koor Industries gained 2.7% after the company reported that it had netted NIS 154 million from its latest selloff of Credit Suisse stock. So far, since Koor began speculating in shares of the Swiss bank, it has netted NIS 3.2 billion. Of that amount, NIS 251 million (so far) will be posted in its fourth-quarter financial statement.