Tel Aviv Shares Join Global Stock Market Rebound

Benchmark index up 2.7% in late morning trading and market stages broad rebound, though China, which has been at the center of the rout, sees drop.

Shares on the Tel Aviv Stock Exchange rebounded on Tuesday as volatile global markets got some respite from the latest blood-letting by bargain hunters buying up Asian and European stocks.

The TASE’s benchmark TA-25 index was up 2.7% at 1,611.42 points late morning local time, clawing back some of the 7.5% loss it sustained the first two days of the week. The TA-100 was ahead 3% at 1,401.47.

The turnaround was broad based, with virtually the entire market higher. Only four stocks among the 100 comprising the TA-100 index were lower, led by Opko Health, which was down 5.6% at 42 shekels ($10.86). Teva Pharmaceuticals led the most actives on a 3.6% gain to 253.60 shekels.

Energy shares, which had been pounded twice over by the share market slump and falling oil prices, were higher, too, with the Oil and Gas index up 3.9% at 1,092.83 as global oil prices saw their first rises in five days. Tech shares, which had been pacing the market lower, turned sharply higher, with Allot Communications leading TA-100 stocks up on a 7.8% jump to trade at 19.90 shekels.

Corporate bond prices recovered, too, with the Tel-Bond 20 index up 0.48%. But government bonds continued lower, with the 10-year shekel bond down 0.39%.

The global currency market was also calmer. The dollar rose against the yen as it pulled out of a four-day long slide that had left it at a seven-month low. But against the shekel it was down 0.3% at 3.8674. The euro extended its gains against the Israeli currency but by only a modest 0.1% to 4.4636.

The global rebound didn’t include China, which has been at the center of the rout. China's main equity markets saw another huge 8% drop overnight and Japan's Nikkei had slumped 4%, but the rest of Asia was calmer overall.

Europe also started on a firmer footing after Monday's global beating had wiped around 450 billion euros ($520.70 billion) off the value of its leading stock markets. The pan-European FTSEurofirst 300 index clawed back 1.7%  of the more than 5% it had lost as London .

"We are seeing signs of relief with European stocks opening higher despite China extending its losses," said Piotr Matys, an emerging markets expert at Rabobank in London.

"We are trying to decouple but I think it's too early to declare the worst is over though and we are out of the woods. The way I see it is that this is a bit of a technical correction after things got a bit oversold."