Market Report / World crises drive Tel Aviv down
The biggest losers once again were real estate stocks as the crisis in the subprime mortgage market and fears of a credit crunch sent the real estate index down 2.8 percent.
The Tel Aviv Stock Exchange ended its trading week yesterday the same way it started, with hefty losses in a volatile session. The TA-25 dropped 1.7 percent to close at 1,072.7 points, and ended the week down 1.8 percent despite a rise of almost 4 percent from Monday through Wednesday in which the blue-chip index rose almost 4 percent.
The TA-100 fell 1.8 percent yesterday, and bond markets were also off, with long-term Shahars dropping 0.9 percent. Their yields have now reached 6 percent. Long-term Galil shekel-linked bonds lost 0.6 percent. Turnover was NIS 2 billion.
Stocks had opened with gains of about half a percent, with investors encouraged by another good day on Wall Street Wednesday, but sharp losses in Europe spread to Israel on news the European Central Bank was intervening in the credit crisis there. Another factor stinging stocks yesterday was a survey by Morgan Stanley predicting that the Bank of Israel would raise interest rates by 1 to 1.25 percent by the end of this year.
The biggest losers once again were real estate stocks as the crisis in the subprime mortgage market and fears of a credit crunch sent the real estate index down 2.8 percent. For the week the index was off 1.3 percent. Africa Israel dropped 2.7 percent and Gazit Globe fell 2.2 percent after both opened the day up 1.5 percent.
The Banks-5 Index was down 3.1 percent for the week, about half of which came yesterday. Bank Leumi lost 1 percent for the day and Bank Hapoalim was down 1.5 percent.
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