Market Report / TASE Gains Ground as IDB Closes Up 25%

Stronger U.S. housing data and improving German business morale boost global equity markets.

Dror Raich
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Dror Raich

All the leading indexes on the Tel Aviv Stock Exchange closed in the green yesterday, as did exchanges in Europe.

The blue-chip Tel Aviv-25 Index gained 0.4% to close at 1,325 points, while the broader Tel Aviv-100 Index gained 0.5% to close at 1,195 points. Technology shares gained 1.1%, while biomed shares gained 1.4%. The Real Estate-15 was up 0.7%, while oil and gas shares closed virtually unchanged.

Total turnover was NIS 939 million, which is slightly below the recent average.

Meanwhile, global equity markets rose yesterday on a strengthening U.S. housing market and improving German business morale, while U.S. Treasury prices fell ahead of a Federal Reserve decision on whether to finally begin to unwind its stimulus. In Asia, Japan’s Nikkei share average jumped 2 percent to a one-week closing high yesterday, while Hong Kong shares had their best day in two weeks.

IDB Holding gained 25% on turnover of 11 million shekels - 10 times the usual average - following the court ruling Tuesday transferring control of the company from Nochi Dankner to Moti Ben-Moshe and Eduardo Elsztain. Market animals speculated that the high turnover was due to investors’ belief that the new owners could create more value at the company.

Brainsway gained 1.7%. The company received FDA approval to begin human clinical trials of its product on patients with obsessive-compulsive disorder.

Other notable shares included Mazor Robotics, the TA-100’s biggest gainer, up 8.3%; chipmaker TowerJazz, up 6.5%, after signing an agreement with U.S. bank Wells Fargo for a $70 million credit line; and Clal Biotechnology, up 4%.

Shares that lost value included Pluristem, down 2.8%; Alon Blue Square, down 1.7%; Osem, off 1.6%; and the Delek Group, down 1.5%.

With reporting by Reuters.

Federal Reserve Chairman Ben Bernanke announces the decision to begin trimmingCredit: Reuters

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