The Ticker: TA-25 Index Linked to Dollar to Be Launched

Private equity deals plunged in third quarter; CyberArk shares fall despite strong quarter; Telit wins big Internet of Things contract

Bloomberg

TA-25 index linked to dollar to be launched

The Tel Aviv Stock Exchange said Sunday it is launching a new index tracking the bourse’s top stocks aimed at foreign investors, the TA-25 Neto-Dollar index.

The new index, which will go live next Sunday, is aimed at creating a platform for foreign investors who want to trade the TA-25 through overseas exchange-traded funds, or ETFs. It will comprise the same stocks as the TA-25, which groups the bourse’s blue chips, but the component stocks’ closing prices will be adjusted for the shekel-dollar rate as published by WM Reuters daily at 4 P.M. London time. In addition, dividends will be incorporated into the index in a net basis, in other words at 75% their gross rate. It will be calculated retroactively to a base of 1,000 points in 2005, the TASE said.

Robby Goldenberg, the TASE’s senior vice president and head of trading, derivatives and indices, said the index was created the behest of an unidentified overseas ETF manager. (Shelly Appelberg)

Private equity deals plunged in third quarter

Private equity deals in Israel dropped sharply in the third quarter, Israel Venture Capital research said yesterday. Funds did just 20 transactions in the quarter worth $419 million, 43% less than the quarterly average for the previous five years and down 73% from an especially strong second quarter.

The largest deal in the quarter was the $50 million buyout of e-commerce company Payoneer by the U.S. private equity investor Wellington, but foreign investment in PE deals was generally down, as were deals in high tech. Nevertheless, Omer Ben-Zvi, a partner at Shibolet & Company, the law firm that conducted the survey with IVC, said the number of transactions was similar to the previous quarter even if the dollar values were down.

“It is too early to conclude a down trend based on a single quarter, partly because the survey figures are strongly impacted by single large-size deals,” he said. (Eran Azran)

CyberArk shares fall despite strong quarter

CyberArk shares fell on Friday even after the network security company reported a 56% year-on-year increase in net profit and handily beat analysts’ forecasts.

The company said adjusted net grew to $9.2 million or 26 cents a share, from $5.9 million or 20 cents, while revenue was $40.1 million, up 43% on the year. That compared with an average estimate of 11 analysts surveyed by Zacks Investment Research for earnings of 13 cents a share.

“We were pleased to cross the 2,000 customer mark in the quarter. We gained traction in a number of Fortune 500 companies, including a new win with one of the world’s most recognized technology brands,” said CEO Udi Mokady.

CyberArk said fourth-quarter revenue would be in the range of $43 million to $44 million, which represents 18% to 21% year-over-year growth, while adjusted net income will be in the range of 18 to 20 cents. CyberArk shares closed down 4.1$ at $47.23 in New York on Friday. (TheMarker)

Telit wins big Internet of Things contract

Telit, the maker of the Internet of Things technology, said on Friday it won its second major contract in the space of a week. The latest is from Swisscom, a major Switzerland-based telco.

Telit will provide a platform that allows Swisscom to provide end-to-end IoT services and application development. The contract, for which no financial details were disclosed, calls for shipping over 150 million Cloud-ready IoT modules over the next five years.

Earlier last week Telit said it had secured supply agreements for its cellular modules with two leading, but unnamed, automotive suppliers that will generate revenues of up to $33 million. Telit shares haven’t benefited from the deal flow: The stock dropped 10.7% in London on Friday to 241 pence ($3.63). In early September it was trading at 356 pence. (Shelly Appelberg)

Shares pressured by property, energy, telcos

Tel Aviv shares ended lower yesterday, with property, energy and telcos weighing on the market. The benchmark TA-25 index ended the day down 0.7% at 1,570.19 points, while the TA-100 lost 0.6% to 1,358.37. Turnover was a relatively brisk 753,600 shekels ($192,000) for a Sunday, with Perrigo leading the most actives on a 1.4% gain to 635.80 shekels with just days to go until the deadline to vote of the Mylan takeover bid. Gazit Globe led property shares lower, tumbling 4.2% to close at 40 shekels. Kenan Holdings dropped 5.12% to 46.99 after it said it would provide $43 million in shareholder loans to its financially troubled Qoros automotive joint venture in China and guarantee up to $28 million in loans. Tech shares were higher. TowerJazz jumped 5.1% to 55.76 shekels and LivePerson reversed Thursday’s big drop to finish ahead 4.6% at 30.11. Bond prices were down sharply, with the government’s 10-year shekel bonds declining 0.62% to a yield of 2.19%. (Eran Azran)