Tel Aviv stocks were higher on Sunday in relatively heavy trading as the Tel Aviv Stock Exchange ended its first day with six revamped share indices, including the new TA-35 index of blue-chip stocks.
- Guide to the Perplexed Investor in Israeli High-tech Startups
- Friday Trading Needed for Israel to Join European Stock Index
- Tel Aviv Stock Exchange's Main Indices to Grow as Part of Shakeup
The TA-35, which replaces the TA-25, ended the session up almost 1.1% to 1433,37 points on turnover of 909 million shekels ($242 million), a relatively high figure for a Sunday. The TA-125, replacing the TA-100, rose nearly 1% to 1,265.72.
Rounding out the list of new indices is the TA-All Share, which takes the place of the TA-Composite index and includes all the other approximately 310 companies not in the TA-125. The TA-90 is an expanded version of the TA-52 and encompasses the 90 largest companies by market cap after the TA-25.
The TA-50 Small Cap was replaced by the TA-SME 60 that counts the 60 biggest companies by market cap not in the TA-125, and finally the TA-Growth index, the TA-Small Cap Composites which counts 126 small-cap stocks whose float is less than 10%.
The new indices are designed to help index-tracking funds, which are a major player in the market, by spreading their weightings over more companies, as well as to give more companies exposure to investors.
The new entrants to TA-35 rose sharply on Sunday, with SodaStream adding 5.3% to end at 175.20 shekels, Aloni Hetz 3.4% to 33.19 and Cellcom Israel 2.7% to 39.50.
The companies most affected by the new caps index weightings were drug makers Teva Pharmaceuticals, Perrigo and Mylan, and Bank Hapoalim and Bank Leumi. Teva fell 1.8% to 199.40, but that was probably due to its releasing earnings on Monday.
Perrigo ended up 1.35% to 300, and Bank Leumi climbed 1.1% to 16.06.
Among other gainers in Sunday’s trading, Clal Insurance rose 2.8% to close at 54.68 after it said its fourth-quarter profit after tax would be between 400 million and 500 million shekels. LivePerson led TA-125 stocks higher, advancing 5.9% to 26.47. The company reported poor fourth-quarter results last Thursday, but its Wall Street price rebounded on Friday as investors looked at the numbers again and turned more bullish.