In recent months the Tel Aviv Stock Exchange reactions to terror attacks and bad economic news have been immediate and volatile. Yesterday, however, the TASE managed to weather the double blow of a terrorist attack in Immanuel that left eight people dead, and yesterday's higher than expected 1.3 percent consumer price index rise.
It suffered only moderate losses on the leading indices and the shekel also showed relative stability on the foreign exchange markets.
The Maof index ended the session down by 0.6 percent at 375 points, recovering from early losses of 1.3 percent. The Tel-Tech slipped 0.7 percent and the Tel Aviv 100 was down by 0.5 percent. Total turnover was a low NIS 165 million, less than the volume in Teva Pharmaceuticals alone last Thursday.
Some market players said that in recent days institutional investors, helped by low turnover, had been turning the trend to positive with a low investment of only several million shekels.
Yesterday's trend seemed to bear this out with trade turning by 1 percent in a short period.
In the banking sector, Israel Discount Bank jumped 4.2 percent on turnover of NIS 4 million, fueled by the interest of several financial institutions in its subsidiary, Israel Discount Bank of New York.
Since June 23, when the financial markets hit a low, Israel Discount Bank has gained 21 percent. The other banks have also made impressive gains in the last three weeks but Discount outshone them all.
Teva Pharmaceuticals gained 1.2 percent on turnover of NIS 25 million, the heaviest of the session. Koor Industries was up 2.35 percent and Industrial Buildings edged up 1 percent. Bezeq fell 2.1 percent, Makhteshim Agan lost 1.6 percent and the Israel Corporation was down 1.5 percent.
Investec Bank yesterday issued a stock market buy recommendation for its clients. Analysts at the bank said that the Maof 25 is entering a positive period and that the current weakness of the index after going below resistance levels is natural. Investec's analysts recommended to their clients that they take advantage of the indexes current weakness to increase their holdings in the Maof in expectation of significant advances in the near future.
After Monday's sharp appreciation in the value of the shekel against the dollar the American currency regained some ground yesterday with the representative rate set at NIS 4.686, up 0.34 percent on Monday's rate. The dollar began to gain ground on Monday evening after publication of the consumer price index and yesterday's terrorist attack also supported the trend.
The currency basket gained 0.63 percent and the euro jumped 1.4 percent against the shekel.
The bond marketed also responded moderately to the CPI increase. Shekel denominated bonds fell 0.5 percent on average, while index linked bonds gained slightly.
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