Market Report / TA-25, TA-100 Drop 0.75% as Investors Wait on the Sidelines

The blue chip TA-25 index and the TA-100 index both lost 0.75% to close.

Stocks fell yesterday on the Tel Aviv Stock Exchange. Local investors spent much of the day on the sidelines waiting for the December and all of 2012 inflation numbers, which were published only after the TASE closed, and turnover was low. The December consumer price index rose 0.2%, surprising most analysts who forecast no change. In addition, the mixed trading on Wall Street on Monday helped pull the market down. Other local news that added to the pessimism yesterday were the reports on the huge state budget deficit, and the cuts and tax increases that would be required after the coming election next week.

The blue chip TA-25 index and the TA-100 index both lost 0.75% yesterday to close at 1,210.24 and 1,070.21 points respectively. All the major indexes were well in the red with the TABanks index dropping 1.4% and the Real Estate-15 index also losing 1.4%. The TA-Insurance index was almost unchanged, and the Oil and Gas Exploration index fell 0.1%. The TA-Technology index lost 1.2%.

Turnover was low once again at NIS 877 million. The low volume may also have been the result of investors waiting it out until after the election.

The large-cap corporate bond TelBond-20 index rose 0.1%, as did the TelBond-40 and TelBond-60 indexes. .

The dollar was little changed as forex markets waited for the inflation numbers. The greenback rose very slightly to a representative rate on NIS 3.734. The euro moved in the opposite direction against the local currency, down 0.1% to a representative rate of NIS 4.983. This reflected the movement of the two major currencies in global forex markets, where the euro was down 0.1% against the dollar for the day.

Given Imaging plunged 13% yesterday after the company announced it is no longer considering a sale or merger and will stick to internal growth. (See story on Page 8.)

World equity markets slid and safe-haven U.S. Treasury debt rose yesterday as a looming battle in Washington over the government's borrowing limit and a recovery in the yen weakened demand for riskier assets.

Reuters contributed to this report.

Bloomberg