Market Report / Israel's Budget Disappointment Keeps TA-25 in the Negative

TA-100 edges higher, led by financial, energy stocks.

The Tel Aviv Stock Exchange ended higher on Tuesday, led by financial and energy shares, as global markets rallied on some rare good news from Europe.

But disappointment with the Israeli government's 2013-14 draft budget, which economist said is likely to deter growth, kept the benchmark TA-25 index in negative territory most of the session. In the end, the index finished up, but by just 0.07% to 1,210.68 points. The broader TA-100 index ended 0.1% higher at 1,088.41 while the TA Midcap 50 index extended its rally, rising 1.25% to 508.64.

Financial stocks paced the market. Bank Hapoalim rose 1.5% on turnover of NIS 55.8 million, making it the most active share of the day. Harel advanced 2.9%, First International Bank of Israel 1.9% and Cal Insurance 1.7%. Ratio led oil and gas stocks, with a 2.4% gain.

Major stock indexes inGermanyand the United States hit all-time highs on Tuesday. The MSCI index of global shares, which tracks stocks in 45 countries, edged past its June 2008 high, and Germany's DAX index notched a record high, topping the previous high set in 2007.On Wall Street, the S&P 500 touched an intraday record high of 1,623.74.

Germany, the region's largest economy, reported a rise in industrial orders in March, confounding expectations for a drop.Meanwhile, the success of Portugal's first 10-year bond in more than two years, in addition to putting the country on course to exit its bailout on time, qualifies it for an ECB debt support program.

In foreign currency trading, the shekel gained on the dollar and euro. Against the greenback, the Bank of Israel rate was set at NIS 3.56, a drop of 0.3% for the U.S. currency. The euro, meanwhile, edged 0.08% down on the shekel to NIS 4.6731.

"The heating up of the northern front is a reminder of what kind of neighborhood we live in and how volatile the situation is," commented Gideon Ben Nun, CEO at Agio Risk Management & Financial Decisions. "At this point it seems Fischer is holding back and that the security tension is the main factor affecting the shekel."

Super-Sol shares topped the TA-100 index yesterday with a 3.54% gain after it reported a 45% jump in quarterly net profit to NIS 55 million from rising sales at itsdiscount stores and cost-cutting measures. Revenue increased 6.3 % to NIS 2.98 billion.

Yitzhak Tshuva's Delek Group climbed 1.2% to NIS 959 making up for lost ground in Monday's trading when it dropped 1.6%. A sale of stock by holding company met orders totaling NIS 200 million, more than twice the amount offered.

Mazor Robotics gained another 2.9% to NIS 18.52, capping an 8.6% two-day rally.Ladenburg Thalmann raised its target price for the company on Monday to NIS 22.67 from NIS 14.90 as Mazor reported it had won a second order from India for its Renaissance line of robots.

Allot Communications dipped 0.1% in heavy trading. The company reported a first quarter GAAP net loss of 6 cents a share, turning around from a year-earlier profit of 10 cents. Analysts polled by Thomson Reuters had expected the company to report earnings of 11 cents.

Perrigo, the world's largest maker of private label nonprescription drugs in the United States, dropped 1.9% after it poured cold water on analyst expectations by reporting adjusted net earnings of $134 million in the first quarter, equivalent to $1.42 a share. Analysts expected adjusted earnings to reach $1.44 per share.

Kamada, the maker of plasma-based drugs, was down 2.6% after reporting a $2 million loss in the first quarter, four times its loss the previous year, with revenues dropping 35% to $12.6 million.

With reporting by Reuters.

Nir Keidar