Market Report / TA-25 falls 1.1% - after February options expire

Tel Aviv stocks were down strongly to end the trading week. February options on the TA-25 index expired yesterday on the Tel Aviv Stock Exchange at an exercise price of 1,178 points, up 0.5% from the previous day's close.

The TASE was influenced by Wall Street, which rose on Wednesday after U.S. Federal Reserve chairman Ben Bernanke addressed Congress. Bernanke reaffirmed an extended period of low U.S. rates, but offered a relatively somber assessment of the American economy despite recent signs of strong growth. He also raised concerns about global growth.

By the end of the day, all the screens had turned red and the TA-25 fell 1.1% to close at 1,159 points. For the week, the blue-chip index was down 0.5%. The broader TA-100 also lost 1.1% yesterday - ending the day at 1,092 points; it was also down 0.5% for the week. Turnover stood at a high NIS 3 billion due to the options expiry.

The TASE will be closed for trading on Sunday for the Purim holiday, making yesterday the last trading day for February.

The TA-25 did quite well for the month, rising 4.7%, while the TA-100 gained 4.5%. The biggest gainer in February was EZchip Technologies, which jumped 38% over the month. The worst performer was Alvarion, down 9% in February.

A tepid rally in Asian shares faltered early yesterday, while the dollar rose after Bernanke's remarks. European shares fell the most in three weeks due to more worries about Greek debt. The euro stayed weak at $1.35, further paring the gains it had made soon after Bernanke's remarks and heading closer to a nine-month low last week. Wall Street was also deep in the red.

Worries about a possible downgrade of Greece weighed on the European single currency, pushing it down from above $1.36 on Wednesday. Gold stood at $1,096 an ounce, down 3% from Monday's peak above $1,130. Oil prices also hovered just above the $80 mark, but were also off Wednesday's highs.

Locally, the dollar strengthened against the shekel by almost 0.4% - to a representative rate of NIS 3.785. The euro fell against the shekel by 0.1% - to NIS 5.105.

Israel Chemicals fell 2.5%, however its parent company, the Israel Corporation, gained 0.7%.

The Zerah oil exploration partnership remained unchanged, despite news reports during the day saying there were positive signs from Zerah's Tamrur Cliff exploratory well. The share rocketed up 18% on the news but investors retreated, or took profits in the share, as the day wore on.

Walla! rose 1% after releasing its financial report on Wednesday, with a 15% rise in profits for the year, but only a 3% rise in revenues.

Tower Semiconductors gained 2.7% as it reported on its fourth quarter of 2009, showing a 30% rise in revenues compared to the same quarter the year before. But Tower still lost $31.4 million for the quarter.

Ormat Technologies, a subsidiary of Ormat, reported a $16 million profit for the fourth quarter of last year, but it was mostly due to a one-time tax savings deal. Ormat fell 3.7%.

Discount Mortgage Bank reported a 11% drop in revenues from financing and credit in 2009, though profits increased by 9% to NIS 31 million. The share was unchanged, but its parent, Israel Discount Bank, fell 1.9%. Bank Leumi lost 1.7%.

Reuters contributed to this report.