TASE rises amid rosy reports and economic data

The Tel Aviv Stock Exchange finished the trading day yesterday with gains, as second-quarter financial reports continued to flow in. The blue-chip TA-25 index gained 0.4% to close at 1,153 points, and the broader TA-100 index gained 0.3% and closed at 1,059 points.

The Real Estate-15 index was up 0.2% and the Banks-5 index was up 0.6%.

The TA-25 is 7.4% below its all-time high, which was reached earlier this year.

The Central Bureau of Statistics announced Sunday that inflation for July was slightly lower than anticipated, at 0.5% rather than 0.7%. The Consumer Price Index was up by all of 1.8% for the last 12 months, which puts it smack in the middle of the price-stability zone set by the Bank of Israel. In the wake of the announcements, economists are speculating that Bank of Israel Governor Stanley Fischer will leave interest rates unchanged at 1.75% for at least another month.

The Israeli market received another positive economic indicator yesterday: The gross domestic product increased in the first half of the year at a 4.1% annualized pace, following a 3.3% rise in the previous half and a 1.5% increase in the parallel period in 2009. The figures, released by the Central Bureau of Statistics, represent fixed prices and are seasonally adjusted. The second quarter of the year saw economic growth of 4.7% at an annualized rate.

Despite that, Harvard University's endowment sold off all its holdings in Israeli companies in the second quarter, and shifted the money into Chinese stocks, according to its reports to the U.S. Securities and Exchange Commission. In total, it sold off $40 million in shares, including $30 million in Teva Pharmaceuticals, and the rest in companies including Check Point, Partner Communications and Cellcom. Teva's share price gained 0.7% yesterday, while Cellcom was up 1.4%.

Givot Olam Exploration gained 4.3% yesterday. Its investors will have to wait another day or two for the results of production tests on the Meged 5 drilling site, near Rosh Ha'ayin.

Israel's publicly traded companies have another two weeks to submit their second-quarter reports, and they were coming in fast and furious yesterday.

Africa Israel Industries, controlled by Africa Israel, revealed yesterday that its revenues for the second quarter were up 43% over the parallel, to NIS 466 million. It doubled its operating profit, to NIS 35 million. Net profit for shareholders was three times what it was in the parallel, at NIS 15.2 million. Africa Israel Industries' stock was up 4.3%, while the parent company's stock was down 0.2%.

Alrov Real Estate announced that its net profit attributed to shareholders was down 14% over the parallel, at NIS 21.5 million. Its stock was down 0.2% yesterday.

Amot Investments, controlled by Alony Hetz, announced that its net profit attributed to shareholders was up 58% for the quarter over the parallel, to NIS 55.5 million. Amot's stock was up 0.6%, while Alony Hetz was down 0.5%. Mizrahi Tefahot yesterday became the first big bank to file its financials for the quarter, revealing that its net profit was up 34% over the parallel, to NIS 201 million. Its stock was up 3.2% yesterday.

The Psagot Investment house thinks Poland is on a positive economic track and recommended buying into Kardan NV, setting a target price of NIS 23.1, which is 35% more than the stock's current valuation. Psagot cited the financial reports published by GTC Poland, of which Kardan owns 45%. Kardan's stock was up 3.5% yesterday.