Small losses, but banks climb 1.5%

Stocks were down slightly to end the trading week on the Tel Aviv Stock Exchange yesterday. The blue-chip TA-25 index eased 0.2% to close at 1,118 points, and the broader TA-100 lost 0.3% to end the day at 1,029 points. The Real Estate-15 was unchanged, but bank shares climbed 1.5%.

July TA-25 options expired in the morning; the TA-25 was down by almost 0.4% at expiry, with the exercise price set at 1,116.46 points. Turnover hit NIS 1.1 billion before the expiry, and total turnover for the day was well above average at NIS 2.5 billion - but still quite low for an options-expiry day.

For the week, the TA-25 was unchanged and the TA-100 was down 0.35%.

Global stocks fell on concerns about a slowing economic recovery, which overshadowed a batch of strong quarterly earnings from major companies. Global equities measured by the MSCI All-Country World Index slipped 0.1%. In Europe, the FTSEurofirst 300 index of top shares fell 0.4%.

U.S. stocks also sagged in volatile trading after weak outlooks from technology companies and downbeat comments from a Federal Reserve official gave investors little reason to buy.

The euro climbed to a 12-week high against the dollar, rising above $1.31, up more than 0.5%. Oil prices were up to nearly $79 a barrel. Gold prices fell.

The dollar fell more than 0.4% against the shekel to a representative rate of NIS 3.789. The euro rose 0.2% against the local currency to NIS 4.958.

Mellanox falls 30% for the week

Stocks that stood out for the week included Gazit Inc., up 10.5%; Jerusalem Economic Corporation, up 10.2%; NICE Systems, up 8.8%; and Discount Investments, up 8.7%. On the downside were Mellanox, off 29.6%; Teva Pharmaceutical Industries, down 12.5%; Prolor Biotech, off 17.7%; and Ceragon, off 8.5%.

Teva was in focus again yesterday. Besides publishing excellent second-quarter results this week, the company is facing growing competition for its biggest profit-maker, multiple sclerosis drug Copaxone. (See story on Page A8. ) The share fell another 3.9% for the day.

Investment bank UBS left Teva with a Buy recommendation but lowered its target price from $69 to $64, still 30% above the stock's market price yesterday. Merrill Lynch also retained its Buy rating for the share, but lowered its profit forecast for the company.

Isramco lost 1.7% yesterday and Delek Drilling rose 0.7%.

Israel's largest supermarket chain Super-Sol was, as usual, the first large Israeli company to release its quarterly financial report. For the second quarter, revenues were down 3.5% to NIS 2.7 billion, but net profit climbed 8% to NIS 104 million. The share rose 2.1% on the report. (See story on Page A8. )

This report includes reporting by Reuters.