Mixed Open Expected for Tel Aviv Stock Exchange Amid Global Trends
Translated & summarized from Globes by baba
The Tel Aviv Stock Exchange is expected to open mixed today, with dual-listed stocks showing a negative arbitrage gap. Yesterday, the exchange closed lower, led by declines in the defense, insurance, and banking sectors. Key stock movements included Next Vision's sharp fall after a major sale and Ackerstein Group's surge on a US asset sale agreement. Investors are awaiting US Federal Reserve minutes for monetary policy direction amid global economic uncertainties.
The story in 6 lines · by baba
- Tel Aviv Stock Exchange expected to open mixed, with dual-listed stocks showing a negative arbitrage gap.
- US markets closed at record highs, but Tel Aviv saw declines yesterday, with TA-90 hitting an 11-month low.
- Next Vision stock plunged over 12% after Fidelity sold a significant stake in the company.
- Ackerstein Group shares jumped over 7.5% following an agreement to sell its US operations for $30 million.
- Investors await US Federal Reserve minutes for insights into future interest rate policy.
- Oil prices are rising amid geopolitical tensions in the Middle East, with Brent crude near $101 per barrel.
The Tel Aviv Stock Exchange is poised for a mixed opening this morning, despite Wall Street reaching new highs. Dual-listed stocks are expected to return with a notable negative arbitrage gap of approximately 0.5%. Chip stocks Kamtec and Tower are anticipated to see significant declines of around 5.5% and 3% respectively, with Palo Alto and Nice also expected to drop over 1%.
Yesterday, the Tel Aviv Stock Exchange closed lower, with the TA-35 index down about 0.6% and the TA-90 index falling 2% to an 11-month low. The defense index led the decline, dropping 3.5%, followed by insurance and banking indices. Next Vision saw a sharp drop after Fidelity sold about 65% of its stake for approximately 1.3 billion shekels, a move attributed by some to technical reasons but which caused the stock to lose over 3 billion shekels in value.
Conversely, Ackerstein Group surged over 7.5% following a binding memorandum of understanding to sell its US operations for $30 million. Tower, RP Optical, and Palo Alto also saw gains at the Wall Street open, while Gilat, Qualitea, and Argo each lost over 7%.
The TA-Oil and Gas index is expected to attract attention today, particularly New-Med and Ratio shares. Despite the Competition Authority's withdrawal of objections to a $6.7 billion deal between New-Med and Dalia Power Plants, New-Med maintains the deal is canceled due to unmet conditions. Meanwhile, Wall Street closed at record highs, with the S&P 500 and Nasdaq both reaching new peaks. Oil prices remained stable, and bond yields retreated but are now climbing again.
Investors are closely watching the release of the Federal Open Market Committee (FOMC) meeting minutes for clues on future monetary policy. Recent weaker employment data and PCE figures have tempered expectations for immediate interest rate hikes, though the overall picture remains complex. Bond yields are high, influenced by fiscal shocks in Europe and Middle East geopolitical tensions. Analysts are divided on the Fed's next steps, with some believing the Fed has room to wait for more data, while others anticipate further rate hikes.
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