Business in Brief / Tel Aviv Stock Exchange Reverses Course and Posts Rise

TASE decides what makes a company Israeli; Israel Chemicals signs pact with Spanish regional government; Brooklyn developer to tap Israeli bond market.

Bloomberg

Stock market reverses course and posts rise

The stock market had second thoughts Monday about the fallout from last Friday’s Paris terror attacks, reversing a sharp sell off from the previous day to end higher. The Tel Aviv Stock Exchange’s benchmark TA-25 index rose 1.85%, to end the day at 1,545.42 points. The TA-100 rose 1.8% to 1,340.44, with 1.1 billion shekels ($283 million) in shares changing hands. Perrigo was again the most active share of the day, rebounding from its Sunday losses to end 2% higher at 590.50 shekels. Teva Pharmaceuticals gained 2.8% to end at 230 shekels. Anther big gainer was Protalix, which added 4.8% to end at 3.82 shekels after receiving U.S. approval to move ahead with Phase III clinical trials of its PRX-102 for the treatment of Fabry disease. Delek Drilling and Avner, the two energy units of Delek Group, rose sharply after they reported a 66% increase in third-quarter profits. Delek Drilling ended up 3.05% at 12.85 shekels, while Avner was up 2.6% at 2.46 shekels. (Shelly Appelberg) 

TASE decides what makes a company Israeli

The Tel Aviv Stock Exchange Monday detailed the factors it will take into account when deciding whether a publicly traded company is Israeli enough to be included in the bourse’s share indices. The decision comes amid concerns in the last few weeks about small foreign biomed companies seeking to raise capital easily on the TASE by getting themselves included in the indices, thus forcing fund managers whose portfolios are weighted to the indices to buy and hold their shares. The TASE didn’t provide an exact formula for judging a company’s Israeliness, but said it would include the extent of its operations in Israel – including research and development facilities, domestic workforce, local assets, location of headquarters and the percentage of Israeli shareholders. TASE CEO Yossi Beinart will have the final say, the bourse said. The Israel Securities Authority still has to approve the rules, which will go into effect on December 22 and won’t be imposed retroactively. (Omri Zerachovitz)

Israel Chemicals signs pact with Spanish regional government

Israel Chemicals’ Spanish subsidiary, Iberpotash, signed an accord over the weekend with the regional government of Catalonia that designates ICL’s operations in the Bages province a strategic investment. The agreement, in which ICL says it plans to make investments in the area through 2065, comes after the two sides signed an environmental act that commits ICL to presenting a plan by the end of the year for cleaning up the mountains of salt that have accumulated over the years from potash production at the company’s facility in the Catalonian town of Sallent. Under a court order, ICL has to complete the work by 2035 and 6.9 million euros ($7.4 million) in guarantees that it will complete the work. The agreement comes as ICL is fighting the Israeli government on plans for a windfall profit tax on natural resources, which has caused the company to freeze local investment. ICL shares ended 3.5% higher at 20.42 shekels. (Assa Sasson)

Brooklyn developer to tap Israeli bond market

Brookland Upreal, an Israeli-owned real estate company that develops hip projects in Brooklyn, plans to tap the Tel Aviv bond market a second time next week for 120 million shekels ($30.8 million). The company, which describes its target customers as first-time buyers ages 25-35 looking to live in “hipster” neighborhoods, raised 120 million shekels on the Tel Aviv Stock Exchange a year ago that now yields 7.3%. It filed a shelf prospectus in August for the current sale. But unlike many of the other U.S. property developers selling debt in Israel, Brookland offers collateral, mainly because its credit rating is relatively low. In any case, since its last issue the company has shown a sharply improved financial performance as new projects have been completed. In the first nine months of the year, it had $40 million in revenues from home sales, up from $9.3 million the same time in 2014. Net profit attributable to shareholders, meanwhile, edged up to $3.4 million from $3.2 million. (Eran Azran)