Yigal Dery Faces Potential Exclusion From Tel Aviv Stock Exchange's Top Index

Yigal Dery, the owner of Y.H. Dery, a major Israeli construction firm, is at risk of being removed from the Tel Aviv 35 Index, the stock exchange's benchmark index. The potential exclusion hinges on the upcoming index rebalancing in early November, which is determined by trading data from a crucial ten-day period starting this Thursday and ending October 15th. Dery's position in the index is vital, especially after raising approximately 1.4 billion shekels from institutional investors like Phoenix, Meitav Dash, Harel, and Menora earlier this year. His current market capitalization stands at 8.759 billion shekels, about 1.5 billion shekels below the threshold for inclusion in the index, placing him at 47th position, while the 39th company will enter the index. Analysts and investors are closely watching Dery's strategy in the coming days, including the possibility of him purchasing company shares to boost market value. Shufersal is also reportedly working to remain in the index, and Cannon is striving to be included. Unlike previous instances where Dery managed to retain his index position through significant efforts, his current distance from the threshold is considerable. Exclusion from the Tel Aviv 35 Index carries not only a reputational blow but also significant financial implications. Institutional investors would be compelled to adjust their portfolios, potentially leading to sales of Dery's company stock. For a developer like Dery, whose financing relies heavily on the confidence of large institutions, a drop to the Tel Aviv 90 Index could increase future borrowing costs due to reduced exposure from major funds. This situation unfolds as Dery, a prominent and respected figure in Israeli construction, recently received a lifetime achievement award. He has expressed a commitment to 'eliminate the concept of the periphery,' aiming to develop areas outside major urban centers. Dery, originally from the southern region, began his career as a farmer before founding Y.H. Dery in Netivot in 1989. The company grew from a family business in the Negev to one of Israel's largest development and construction firms. Y.H. Dery went public on the Tel Aviv Stock Exchange in 2004 and joined the flagship index in 2024.