Business in Brief: Wix Planning Super Bowl Ad by DreamWorks

Amos 5 written off as total loss; Elovich, Eliahu backing renewable energy; IBI: Invest in foreign stocks, not TASE; Real estate, energy stocks drag down TASE.

AP

Amos 5 written off as total loss

The Amos 5 satellite is probably gone for good, and is being written off as a total loss, Space Communications officially announced Wednesday. The company lost contact with the communications satellite three weeks ago. “The failure is final and further operating of the satellite is impossible,” it stated. The satellite’s manufacturer, ISS, believes Amos 5 suffered an electrical failure, putting it entirely offline. Declaring Amos 5 a total loss enables Space Communications to proceed with its insurance claim. The company is likely to receive the full $158 million for which Amos 5 was insured. The company’s stock has lost 42% since the satellite disappeared. (Omri Zerachovitz

Elovich, Eliahu backing renewable energy

Shaul Elovich and Shlomo Eliahu are hoping to capitalize on the Paris environmental summit in order to make good on a 400 million euro investment in renewable energy sources abroad. Participants in the Paris summit called for cutting greenhouse gas emissions around the world by cutting back on fossil fuel use. Elovich’s firm Enlight and Eliahu’s insurance company Migdal are forming a jointly held investment venture, called Leading Renewable Energies, and giving it 100 million euros to invest. (Yoram Gabison)

IBI: Invest in foreign stocks, not TASE

Don’t expect to turn too much profit investing in the Tel Aviv Stock Exchange next year, predicts IBI Investment House. Foreign stocks would be a better investment, said IBI CEO Ido Cook, speaking at the investment house’s annual press briefing. The investment house also suggests hedge funds, which have been primarily the territory of major investors. Furthermore, the TASE stock indexes are no longer a faithful representation of Israel’s economy as far as investments are concerned, says Cook. Instead, Cook suggests investors look into the new index Bluster Israel Global, which gives high-tech stocks a 33% weight, as opposed to the 10% on the Tel Aviv-100 Index. (Assa Sasson)

Wix planning Superbowl ad by DreamWorks

Wix is planning to air an ad during the U.S. Superbowl this year as well, the Israeli web company announced Wednesday. As a result, the company will have a high advertising expenditure during the current quarter and the first quarter of 2016, it noted. Wix is launching a major campaign surrounding the Superbowl ad, as it did last year as well. The ad, along with related online content and social media promotion, will be developed in partnership with DreamWorks Animation. Wix says that the advertising investment, while high, should pay off in new customers within seven months. Last year’s campaign reached 300 million people, on top of the 115 million who saw the ad during the Superbowl, the company said. (Omri Zerachovitz)

Real estate, energy stocks drag down TASE

The Tel Aviv Stock Exchange finished Wednesday's trading session with losses, led downward by real estate and energy shares, despite gains on Wall Street the previous day and the announcement that consumer prices had fallen, which is likely to encourage the Bank of Israel to leave interest rates at their current all-time low. The blue-chip Tel Aviv-25 Index closed down 0.5%, at 1,501 points, while the broader Tel Aviv-100 Index lost 0.4% to close at 1,296 points. Bank shares dropped 0.8%, while real estate was off by 1.5%. Total turnover was NIS 1.3 billion. Notable shares included Space Communications, which dropped another 5% yesterday after announcing that its missing Amos 5 satellite was a total loss. Call Insurance lost 4.5%, and the Israel Corp. lost 3.4%. El Al gained 4% on the news that oil prices were dropping. Alon Blue Square gained 17% on the news that businesswoman G. Yafit was pulling together investors to negotiate the purchase of the company’s Mega Ba’ir supermarket chain. (Eran Azran)