Market Report / Tel Aviv Shares Gain After Volatile Trading

U.S. government shutdown and debt ceiling concerns send the dollar tumbling internationally.

Monday’s session on the Tel Aviv Stock Exchange was marked by volatile trading, with leading indexes losing ground for most of the day before making an about-face to close above the flatline.

Tel Aviv had been trading in the red against the background of the ongoing U.S. government shutdown and its repercussions. The change of direction at the end of the day occured despite the fact that Wall Street opened with losses.

The blue-chip Tel Aviv-25 Index gained 0.4% to close at 1,281 points, breaking a two-and-a-half year high for the second day in a row, while the broader Tel Aviv-100 Index gained 0.35% to close at 1,167 points. The Banks-5 gained 0.2%, the Real Estate-15 gained 0.85% and communications shares gained 1.5%.

Total turnover was a relatively high NIS 1.25 billion.

Internationally, the dollar fell and global equity markets slumped on Monday, as the impasse over the week-old U.S. government shutdown got entangled in negotiations to raise Washington’s borrowing limit or risk default on U.S. sovereign debt. In Europe, stocks drifted lower in thin trading volumes as the U.S. budget impasse kept investors on edge, sending a benchmark index to a one-month closing low. In Asia, shares in Japan and Hong Kong also lost ground.

In Israel, notable shares included Africa Israel, which gained 6.5% as it launched a new mall in Romania.

Givot Olam gained 2.5% in the wake of an updated estimate indicating there are 610,000 more barrels of oil at its Meged 5 well than previously thought.

Haifa Oil Refineries lost 9.15%, as the market internalized the fact that its shareholder, Petrochemical Enterprises, would have no choice but to head into a NIS 1.9 billion debt arrangement. Petrochemicals’ share lost 7.2%, as institutional investors dumped stock in the two companies. Alon Blue Square gained 4.5%, and Isramco gained 2.9%.

With reporting by Reuters. 

Reuters