Market Report / Tel Aviv stable as banks fall 1.8%

Tel Aviv shares were little changed yesterday with the TA-25 down less than 0.1% to close at 1,042 points and the TA-100 up slightly more than that to end at 975 points. Real estate shares gained 0.5% but the Banks-5 fell 1.8%. Turnover was NIS 1.7 billion.

The TA-25 has been cruising above the 1,000-point psychological barrier for the past two weeks after climbing 60% so far in 2009. The blue-chip index is now about 16% below its record high of October 2007. The TA-100 is 18% below its all-time high.

Most Asian stock markets climbed yesterday as a rash of better-than-expected earnings reports from major U.S. companies buttressed confidence in the world economy. European markets were lower.

A number of Asia's bourses were up nearly 1%, following gains in the United States, after Wall Street touched new highs for 2009 on Monday. Oil prices, meanwhile, rose above $80 a barrel for the first time since last year as the dollar continued to founder. Asian markets, already among this year's best performers, have been pushing higher as the weakening dollar and immense liquidity lead foreign investors to channel funds into the region.

The dollar once again fell against the shekel yesterday by 0.22% and hit a representative rate of exactly NIS 3.7000. The fall came a day after the Bank of Israel bought about $400 million to slow the greenback's fall.

The euro was up against the shekel by 0.09% to a representative rate of NIS 5.539, while around the world the dollar was stable against the euro and most other major currencies, but at a 14-month low of $1.4975 per euro.

On Sunday the Bank of Israel hinted to exporters that they should protect themselves from further drops in the dollar since the bank could not intervene in forex markets without limits.

Bank Leumi fell 2.1% yesterday and Bank Hapoalim lost 2.3%.

Africa Israel was down 1.5% after plunging 9% on Monday, as the saga of its debt restructuring negotiations continues. Africa is still up 20% over the past month. Kardan NV gained 5%.

The Delek Group lost 0.5% as the firm became a party of interest in Shari Arison's real estate and infrastructure company Housing and Construction (Shikun U'Binui).

Zim's agreement with bondholders will be put to a vote on November 1 by Israel Corporation shareholders. (See Page 8.) The Israel Corp. lost 0.2%. Its Israel Chemicals subsidiary gained 0.9% after its rival Potash climbed 6.5% on Monday on speculation of a buyout by mining giant BHP.

Ormat Industries rose 0.9%, Bio-Light gained 7.7% and Pilat Media jumped 10.5%.

The Associated Press contributed to this report.