El Al and Doral Poised for TA-35 Index Inclusion; Damari Out
Translated & summarized from Globes by baba
El Al Israel Airlines and Doral Energy are expected to join the TA-35 index in November, while Damari, Shufersal, and Kanon are at risk of removal. The TA-90 index will also see significant reshuffling, with six stocks poised for promotion and six for demotion. Palo Alto Networks' recent inclusion temporarily expanded the TA-35 to 36 stocks, necessitating two removals for the upcoming rebalancing. Final decisions on index composition will be confirmed after Thursday's trading.
The story in 6 lines · by baba
- El Al and Doral Energy are favored to join the TA-35 index, marking their first inclusion.
- Damari, Shufersal, and Kanon face potential removal from the TA-35 index.
- The TA-35 index will be rebalanced in November, moving from 36 to 35 stocks.
- Six stocks are expected to be promoted to the TA-90 index, with seven facing removal.
- Capital raises by Damari, Shufersal, or Kanon could alter their TA-35 status.
- Final index changes will be confirmed after Thursday's trading session.
Tel Aviv Stock Exchange indices are set for a semi-annual rebalancing in November, with El Al Israel Airlines and renewable energy firm Doral Energy emerging as frontrunners to join the prestigious TA-35 index. This would mark the first time for both companies in the benchmark index. Doral leads in market capitalization at 11.44 billion shekels, followed closely by El Al at 11 billion shekels. Other contenders, Energix and Fattal, are currently below the threshold. The inclusion of Palo Alto Networks in August, which temporarily raised the TA-35 to 36 stocks, means three stocks will be removed to make way for two new entrants.
Construction company Damari, owned by contractor Yigal Dery, is the most likely to be removed from the TA-35, with a market cap of 7.86 billion shekels. Despite past capital raises that saved it from delisting, Damari would need to raise approximately 2 billion shekels to remain. Food retailer Shufersal, owned by the Amir brothers, is also on the chopping block with a market cap of 9.56 billion shekels. Holding company Kanon, controlled by Idan Ofer, is also at risk with a 9.76 billion shekel valuation. However, a capital raise of around 160 million shekels by Kanon or 360 million shekels by Shufersal could alter the outcome.
The TA-90 index will also see significant changes, with six stocks seemingly set to be promoted. These include real estate and infrastructure firm Tidhar, biotech company Alpha Tau, and real estate firms Avissar, Talsys, Afcon, and simulator company Bagira. Six stocks are expected to be removed from the TA-90, with Electra Real Estate, Erit, Qualcomm, Ackerstein, Nassi VeBinyan, and Sela Real Estate appearing to be the most likely candidates. Gilat Satellite Networks is also on the verge of removal, but a last-minute surge or capital raise could save it, potentially displacing Wishor, Tamar Petroleum, or Acro.
The final decisions will be made after the close of trading on Thursday, with the changes taking effect in November. The article notes that rapid capital raises by companies facing delisting have previously altered index compositions.
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