Tel Aviv Stock Exchange Rises on Positive Inflation Data; Banks, Tech Lead Gains

The Tel Aviv Stock Exchange (TASE) closed in positive territory on Tuesday, with the TA-35 index gaining 1.3%. The market sentiment was boosted by inflation data that surprised positively, reversing a recent downward trend. Financial and cleantech stocks were among the top performers.

Epitome Medical saw a significant surge of 29% after shareholders approved the compensation package for its new CEO, Dolv Rafaeli, despite institutional investor opposition. The package includes a base salary of $500,000 annually, potentially rising to $540,000 with revenue targets, an annual bonus of up to 75%, and a 5% equity grant. Rafaeli took over in August as Epitome transitions to a direct-to-consumer sales model in the U.S. for its weight-loss capsule, following FDA approval and the end of its partnership with Nestle.

107 Group also experienced a substantial rise after calling an extraordinary general meeting to approve the acquisition of the remaining 49% of its subsidiary, "Accessibility for All," bringing its ownership to 100%. The company also plans a private capital raise at a price significantly above market value, aiming to raise approximately 1 million shekels at 1 shekel per share, with the total proceeds potentially reaching 1.6 million shekels including options. This private placement represents a premium of about 98% over the stock's closing price prior to the announcement.

Max Stock announced that its shareholders approved revised compensation terms for founder and CEO Uri Max. Monthly management fees will increase to 240,000 shekels, along with an annual bonus and equity awards valued at approximately 5.2 million shekels, capped at 6.8 million shekels annually. These terms are reduced from the original proposal.

A shareholder in Ayalon Insurance is demanding the company reverse or freeze its decision to forgo the option to acquire control of Altshuler Shaham Finance. The shareholder threatens legal action, including an injunction, if the demand is not met. This action stems from the ongoing deal where Wensure Globaltech, Ayalon's controlling shareholder, is acquiring control of Altshuler Shaham Finance. The shareholder questions whether Ayalon relinquished a business opportunity without adequate compensation.

Investment bank Jefferies issued positive recommendations for bank stocks, projecting double-digit upside for four companies. Bank Leumi received a price target of 92 shekels (22% upside), Bank Hapoalim 91 shekels (18% upside), Discount Bank 43 shekels (23% upside), and Mizrahi Tefahot 300 shekels (31% upside).

Energyx strengthened after signing 17-year power purchase agreements in the U.S. totaling approximately $1.1 billion in cumulative revenue, providing long-term revenue visibility for its American operations.

Afcon Holdings reported that Israel Railways approved additional work for its subsidiary on a train substation project, valued at approximately 100 million shekels. This brings the total project scope to about 560 million shekels, with no changes to the completion schedule.

Pension fund ratings for August showed Altshuler Shaham leading in retirement tracks for ages up to 50 and 50-60, with returns of 2.17% and 1.92% respectively. Meitav led the track for those 60 and over with 1.28%, while More was first year-to-date and over three years across all age tracks.