Market Report / Wall Street worries keep pushing Tel Aviv down

After falling 4% in a week, Tel Aviv Stock stocks rose about 1% early yesterday, but the gains did not last long, despite some support from U.S. markets at the end of last week.

The TA-25 lost 1% for the day to close at 934 points, and the broader TA-100 dropped 0.9% to end at 852 points. The TelTech-15 was down 0.7%. Turnover was NIS 1.3 billion.

The lack of information on a bailout - or otherwise - for Lehman Brothers, and news that AIG intended to raise $20 billion to cover its losses led Israeli investors to go on the defensive and prepare for the possibility of big losses in world markets today.

However, Israel Chemicals bucked the trend and jumped 5.1%, while its parent, The Israel Corporation, rose 1%. Israel Chemicals, which has tumbled 38% from its high of over two months ago, rose yesterday partly because global fertilizer stocks were on the rise.

Financial stocks led the Tel Aviv Stock Exchange down, with Bank Leumi dropping 3.4% and Bank Hapoalim losing 2.3%.

The Real Estate-15, which had been up by about 1.8% earlier in the day, was down 3% at the end of trading. Africa Israel fell 4.1%, continuing its deterioration to its lowest levels in three years.

Ocif jumped 6.9% after controlling shareholder Arcadi Gaydamak confirmed last Thursday evening he was negotiating to sell control of the company.

Teva dropped 2.5% after losing a legal battle at the end of last week in a U.S. court over exclusivity on its anti-psychotic generic drug Risperdal.

IDB Development fell 3% and Discount Investments was down 1.1%.

Among small-cap shares, Evogene jumped 5.7% in heavy trading. The stock is now up 118% in three weeks after Monsanto decided to invest in the biotech company.