Tel Aviv Stocks Climb as Exchange Inaugurates TA-35 Index

TA-25 and other TASE stalwarts give way to six new market measures.

The Tel Aviv Stock Exchange (TASE) building in Tel Aviv.
Bloomberg

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.

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.