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The Tel Aviv Stock Exchange closed the most volatile week in recent memory with modest losses and a sharp drop by real estate shares. The blue chip TA-25 fell 0.4 percent to 1,091.20 points, down 4 percent for the week. The broader TA-100 index eased 0.2 percent 1,073.32 points, off 6 percent for the week. Still, the indexes are up 18 percent and 16.5 percent for the year. Turnover was NIS 1.7 billion.

Bond prices recovered a modest 0.2 percent, pushing down the yield on long-term bonds to 6.04 percent.

Fallout from the subprime crisis in the U.S. helped depress prices in Israel as well. This put a damper on the opening this week of the second-quarter reporting season, in which Teva Pharmaceutical Industries (TASE:TEVA) and Super-Sol (TASE:SAE) showed significant improvements in the bottom line. Teva fell 2.7 percent Wednesday despite reporting-second quarter profits of $515 million, but bounced back 1.9 percent yesterday. Super-Sol inched up 0.1 percent yesterday.

Given Imaging (TASE:GIVN) was the darling of the day with a 6.75 percent gain. The biomed firm reported strong Q2 results Wednesday night, beating analyst expectations with a 20 percent jump in sales.

The stormy story of the day was the debt crisis at real estate holding company Heftsiba, which owns three public companies - Heftsiba Global, Heftsiba Jerusalem Gold and Heftsiba Hofim. Real estate experts estimate Heftsiba debts at between NIS 800 million and NIS 1 billion.

Electra (TASE:ELTR) recently signed a deal to acquire control of Heftsiba from Boaz Yona and paid NIS 30 million last weekend for 90 percent of the company. Electra shares plummeted 7.6 percent. The TASE halted trade in companies owned by Boaz Yona until it can clarify the situation.

Among real estate stocks, Gazit Globe (TASE:GLOB) fell a further 2.4 percent, ending a dismal week in which its shares retreated 11 percent. Africa Israel (TASE:AFIL) lost 2.7 percent.