TASE Follows Europe Into the Red

Stocks in Tel Aviv edged downward Wednesday, following Europe into the red as the World Bank issued a pessimistic forecast for global growth.

Oren Freund
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Oren Freund

Stocks in Tel Aviv edged downward Wednesday, following Europe into the red as the World Bank issued a pessimistic forecast for global growth, stating that countries around the world are not yet recovering from the economic crisis. World stock markets fell modestly while prices of safe-haven German bonds and U.S. Treasuries rose as weak economic data from Europe raised concerns about the health of the global economy. European shares closed mixed, while Asia had a negative bias.

On Ahad Ha’am Street, all but one of the major indexes closed in the red. The blue-chip TA-25 index closed down 0.1%, at 1,209 points, while the broader TA-100 index also shed 0.1%, to close at 1,070 points. The Banks-5 index lost 0.9%, insurance shares lost 0.6% and the Real Estate-15 index was unchanged. Turnover was a relatively low NIS 807 million.

Notable shares included biomed company Brainsway, which gained 5.3% on particularly high turnover after announcing Tuesday that it had received approval to sell its flagship product, the Deep TMS (transcranial magnetic stimulation ) device for treating depression, in Canada.

Also gaining ground was Givot Olam, which gained 2.1% amid its plans to start drilling in the Meged 6 oil field.

Given Imaging, controlled by the IDB Group, rebounded 2.2% after dropping 13% on Tuesday. The fall came after Given announced it is no longer looking for a merger and is instead examining the possibility of a total buyout. Discount Investment Corporation, Given’s direct parent within the IDB group, said Tuesday it was looking for a company to buy its full holdings in Given.

Discount’s share price lost 0.9% yesterday, while IDB fell 1.5%.

The Ofer family recently signed the necessary documents to restructure their holding in Bank Mizrahi-Tefahot, which they control, TheMarker reported yesterday. This means they’ll hold the bank via an unleveraged company, in keeping with the bank regulator’s demands. The restructuring reportedly had been delayed by a family feud. Mizrahi-Tefahot shares fell 1.2% yesterday.

Eden Springs announced that it is considering selling off its subsidiary Eden Holland, which is responsible for most of its water and coffee operations in Israel and in 15 European nations. The company is hoping to sell the subsidiary at a valuation of NIS 250 million to NIS 375 million, which would garner it NIS 175 million to NIS 250 million for its holding. Shares of Eden Spring gained 0.2% Wednesday.

Inside the Tel Aviv Stock Exchange.Credit: Bloomberg