Israeli Stocks Close Higher Amid Global Economic Data
Translated & summarized from Bizportal by baba
The Tel Aviv Stock Exchange closed higher on Monday, with the TA-35 index gaining 0.8%, influenced by US inflation data and concerns over potential interest rate hikes. Elbit Systems surged 6.1%, while Kamatech dropped 6.3% after issuing financial forecasts that disappointed the market. Tower Semiconductor rose following a new production agreement. Renewable energy stocks saw mixed performance, and the market is nearing the end of a period for index rebalancing.
The story in 7 lines · by baba
- Israeli stock market indices closed higher, led by the TA-35 index's 0.8% gain.
- Elbit Systems stock jumped 6.1%, driving significant trading turnover.
- Kamatech shares plummeted 6.3% after its financial forecasts failed to meet market expectations.
- Tower Semiconductor saw an increase following a new multi-year production agreement.
- US inflation data and potential interest rate hikes influenced global market sentiment.
- The period for index rebalancing is nearing its end, with potential shifts in TA-35 and TA-90.
- Renewable energy stocks experienced mixed results during the trading session.
The Tel Aviv Stock Exchange closed with gains on Monday, with the TA-35 index rising 0.8%, the TA-125 by 0.6%, and the TA-90 by 0.4%. The market experienced a peak of about 1.5% gains during the day. Investor sentiment was influenced by US inflation data, which showed a 3.7% rise and a core index of 2.6%, exceeding forecasts. This led to a surge in US bond yields, fueling concerns that the Federal Reserve might raise interest rates again.
Several other indices also closed in positive territory, including real estate up 0.8%, banks up 0.7%, financial services up 0.7%, and oil and gas up 0.5%. The trading turnover for TA-125 stocks reached approximately 3.8 billion shekels.
Among prominent stocks, Elbit Systems surged 6.1%, leading turnover with about 365 million shekels. Tower Semiconductor also saw gains, rising 3.2% following an announcement of a multi-year agreement with Sumitomo Electric Industries to secure dedicated production capacity for its silicon germanium technology, crucial for data center connectivity. Kamatech, however, experienced a significant drop of 6.3% after releasing its financial forecasts. While predicting third-quarter revenues between $160-161 million and fourth-quarter revenues of around $180 million, the company's 2027 revenue projection of over $800 million, a growth of more than 35%, fell short of market expectations for even stronger performance.
Renewable energy stocks showed mixed results. Doral Energy rose 1.4%, Enlight Energy gained 1.4% with a year-to-date increase of about 49%, and Econerg, Enerjix, and Nofar Energy also closed higher. Conversely, OPC Energy saw a slight decrease of 0.4%.
Other notable movers included Bazan, up 4.7%, Meitav Investments, up 4.4%, and the Tel Aviv Stock Exchange itself, up 2.9%. On the downside, Electra Real Estate fell 13.2%, Palo Alto Networks dropped 4.8%, and Nice declined 4.1%. El Al also closed down 2.5%. The race for inclusion in the TA-35 index is nearing its end, with El Al and Doral among the frontrunners, while Damari, Shufersal, and Canon are expected to be excluded. Electra Real Estate, Eretz, and Qualitao are candidates for removal from the TA-90 index.
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