Tel Aviv Stocks Slide as Wall Street Falls

Tel Aviv stocks resumed their southward slither after a two-day hiatus in the black.

Tel Aviv stocks resumed their southward slither after a two-day hiatus in the black. At yesterday's opening the TA-25 index had been only 0.3 percent below the psychologically (but not otherwise) significant 1,200-point mark. By Wednesday's end the blue-chips index had lost 1.3 percent to 1,143.6 points. Oh well.

The session was choppy, this is true: the TA-25 even touched that summit at one point, only to recede as Wall Street opened in the red. The psychological (not technical) resistance level won the day. The TA-25 index lost 1.2 percent to 1,143.6 points and the TelTech-15, which is dominated by dual-listed stocks and had been the first index to reverse into the red yesterday, fell by a lesser 0.2 percent.

Bonds also retreated: long-term fixed-income Shahars sank 0.3 percent and linked Galils inched down by 0.1 percent. Total turnover in shares and bonds was average to heavy at NIS 2.2 billion.

Shares of The Israel Corporation lost 3 percent, but then they've gained 78 percent this year, so no worries just yet. Subsidiary Israel Chemicals, which is a major part of Israel Corp's business, lost 1.4 percent.

The Real Estate-15 index lost 2.4 percent, dragged down in some part by heavyweight Gazit Globe, which lost 3 percent even though it's quite the darling of more than a few equity analysts. Africa Israel, another giant company, lost 2 percent, which shaved back its 11 percent ascent in the last month.

Bank stocks sank hard after strongly gaining ground the day before. Bank Leumi ended the day down 1.8 percent on heavy turnover of NIS 111 million and Bank Hapoalim tumbled 3.2 percent.

IDB group company Discount Investment Corporation dived 4.7 percent. Yesterday morning the company issued NIS 250 million worth of shares, in order to preserve its position on the TA-25 index, which has rules regarding minimal public float. The problem is that the offering necessarily dilutes the company's shareholders, hence the negative sentiment.

Shares of Ormat Industries bucked the trend and gained 2 percent after Wall Street-listed subsidiary Ormat Technologies, which handles the alternative energy company's global business, announced that it would be raising $188 million on Wall Street at a share price of $45.90.