Three Companies Face Removal from Israel's TA-35 Index Amid Market Shifts

As the Tel Aviv Stock Exchange prepares for its November 5 index rebalancing, a critical ten-day trading period begins this Thursday, determining the composition of the TA-35 index. Real estate developer Yigal Damri is at risk of being delisted for the fourth consecutive time. Damri has previously staved off removal by raising significant capital, totaling 1.4 billion shekels, and through other financial maneuvers. However, current market conditions present a greater challenge, with Damri's company ranked 47th with a market cap of 8.76 billion shekels, requiring an additional 1.4 billion shekels in market value to remain in the top 39 companies.

Food retailer Shufersal, currently ranked 42nd with a market cap of 9.68 billion shekels, is also on the verge of removal following a 12.5% stock drop after weak second-quarter earnings. Holding company Kanon, controlled by Idan Ofer, is also a candidate for delisting, sitting at 40th place with a market cap of 10.1 billion shekels. The inclusion of cybersecurity firm Palo Alto Networks, which joined the index in August via a fast track, has increased the TA-35 to 36 companies, necessitating the exit of one company.

Renewable energy firm Doral, with a market cap of 11.5 billion shekels and a 200% stock increase over the past year, is the leading candidate for promotion to the TA-35. It faces competition from fellow renewable energy company Energix, valued at 11.4 billion shekels. Hotelier Fattal is a less likely candidate for promotion.

Significant changes are also expected in the TA-90 and TA-125 indices. New entrants to the TA-90 are expected to include construction firm Tidhar, biotech firm Alpha Tau, and chip company Telsys. Conversely, Electra Real Estate, Eretz, and Qualitao are among the companies likely to be removed from the TA-90 due to substantial value declines.