Market Report / TA-25 up 1.2% for the day, 0.7% for the week

Tel Aviv stocks rose strongly on the last trading day of the week yesterday. The optimism on the Tel Aviv Stock Exchange took over in the footsteps of Wall Street the day before and major European markets yesterday.

The TA-25 rose 1.2% and closed at 1,122 points and the TA-100 gained 1.3% to end the day at 1,039 points. Bank shares did even better, with the Banks-5 index up 2.4% and the Real Estate-15 rose 1.9%. Turnover was a relatively low NIS 1.26 billion.

For the week, the TA-25 rose 0.7%. The blue chip index is now up 71% this year and is only a little more than 9% below its all-time high.

European shares snapped their three-day losing streak yesterday, helped by banks recovering from recent losses on worries over some of the region's more exposed economies and Dubai's debt problems.

The FTSEurofirst 300 index of top European shares closed up 1% after losing 3% in the previous three sessions. Banks were the top gainers. Asian markets were mixed as worsening government finances in the West and weak economic figures in Japan continued to shake investors' confidence in a global recovery. Tokyo's Nikkei 225 stock average fell 1.4% while South Korea's Kospi rose 1.1%.

Wall Street was higher as improved U.S. trade figures offset disappointing employment data from the world's largest economy.

Investors in Europe and Asia remained unsettled after a top ratings agency lowered its credit rating outlook on Spain to negative. Wednesday's move by Standard & Poor's raised more fears about the consequences of governments piling up massive debts as they support battered economies with unprecedented stimulus spending.

The dollar fell against the euro for the second straight day yesterday after a narrower-than-expected U.S. trade deficit for October and some improvement in jobless claims, reducing safe-haven demand for the greenback.

Teva rose 0.2% after it repayed large bridging loans it had received from Bank Leumi and Bank Hapoalim for its purchase of Barr Pharmaceuticals. Each bank had put up NIS 2.9 billion, and also needed the repayment to free up its loan book.

Cable company HOT rose 0.5% after its controling owner Patrik Drahi announced he would be buying cellular operator MIRS for $170 million, and would later merge it with HOT. (See story on Page A8.)

Stocks that stood out this week, for good and for bad, included: Rami Levy, which climbed 5.6%; Strauss, up 2.9% and 012 Smile, which gained 3.6%. On the down side were Delek Real Estate, which lost 4.5% for the week; Africa Israel, whose continued solvency problems lead it to fall 5.6% and Makhteshim Agan, which was down 1.5% for the week.

This article includes reporting from news agencies.