Business in Brief: Tel Aviv Stock Exchange Releases Fear Index

TASE releases fear index ■ Apax fund looking to buy Osher Ad ■ Tel Aviv ends down, Matomy plummets 44 percent

TheMarker
Send in e-mailSend in e-mail
Send in e-mailSend in e-mail
Stock prices flash on an electronic screen displaying world clocks at the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on December 11, 2014.
Stock prices flash on an electronic screen displaying world clocks at the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on December 11, 2014.Credit: Ariel Jerozolimski/Bloomberg
TheMarker

Apax fund looking to buy Osher Ad

The Apax Israel fund is in talks to buy half of Israel’s discount supermarket chain Osher Ad at a valuation of up to 1 billion shekels ($267 million). The privately held chain is known for its steep discounts and caters to the ultra-Orthodox market. It has 18 outlets in Israel and one in Brooklyn, and was founded in 2009. The chain is expected to bring in revenues of 4 billion shekels in 2018, and have a net profit of 100 million shekels. It is expected to keep on being managed by its three founders, Avraham Moshe Margalit, Aryeh Boim and Yehuda Landau. Should the sale go through, this will be Apax’s second purchase of a chain known for its low prices. Last year, Apax bought 55% of the Max Stock chain for 300 million shekels. (Guy Erez)

TASE releases fear index

The Tel Aviv Stock Exchange released its own fear index on Sunday morning, named the VTA35, which tracks the level of volatility reflected by options on shares in the Tel Aviv-35 Index. This brings Tel Aviv’s exchange in line with other major exchanges around the world, many of which have their own volatility indexes, including VIX, VSTOXX and VFTSE. The VTA35 is adapted to the characteristics of options on the Tel Aviv exchange, and will be based on the options’ implied volatility over the course of the next 30 days, in annualized terms. Standard deviations will be presented as percentages. The calculation will be based on the sell and buy prices of two call options and two put options that are nearly in the money, within 30 days of expiry. (Assa Sasson)

Shufersal Q3 profit edges up

Shufersal, Israel’s largest supermarket chain, said on Sunday that net profit rose slightly in the third quarter on record revenue as it integrated a newly purchased drugstore chain. The company posted net profit of 64 million shekels ($17 million) versus 63 million a year earlier. Revenue increased 9.4% to a record 3.3 billion shekels as same-store sales rose 3.6%. Shufersal last year agreed to buy New-Pharm Drugstores, which operates dozens of branches in Israel, for 130 million shekels. Expenses rose to 763 million shekels from 664 million due to the integration of New-Pharm and to costs associated with the launching of a new credit card as well as a rise in salary expenses. Holding firm Discount Investment Corp. in June reduced its stake in Shufersal and no longer controls the company. (Reuters)

Tel Aviv ends down, Matomy plummets 44 percent

The Tel Aviv Stock Exchange closed Sunday’s trading session with losses, as the blue-chip Tel Aviv-35 Index shed 0.6% to close at 1,598 points and the broader Tel Aviv-125 Index lost 0.5% to close at 1,440 points. Bank shares lost 1.1%. Notable shares included Matomy, which lost 44%. Its bond lost 30% on market speculation that the company is heading toward a debt settlement. Another big loser was Ability, which lost 30% after raising $10 million on Friday at a share valuation 30% under its market cap. (Assa Sasson)

Click the alert icon to follow topics:

Comments