Tel Aviv Stock Exchange Closes Higher Amid Mixed Performance
Translated & summarized from Ice by baba
The Tel Aviv Stock Exchange closed higher on Wednesday, with the TA-35 index gaining 0.79% and the TA-125 index rising 0.64%. Elbit Systems was the top performer, its stock jumping 6.41% following a major international contract. Electra Real Estate was the biggest loser, its shares dropping 11.66%. Investors await the September CPI data, expected to show a monthly decrease but a rise in annual inflation to 1.8%. The Bank of Israel is likely to maintain its interest rate at the next meeting.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange indices TA-35 and TA-125 closed higher on Wednesday.
- Elbit Systems shares surged 6.41% after announcing a $270 million international contract.
- Electra Real Estate shares plummeted 11.66%, marking the day's largest decline.
- September CPI is projected to decrease monthly but increase annually to 1.8%.
- The Bank of Israel is expected to hold interest rates steady at 3.25%.
The Tel Aviv Stock Exchange concluded Wednesday's trading session with a positive trend, as the TA-35 index rose by 0.79% to 4,162.77 points and the TA-125 index climbed 0.64% to 4,025.15 points.
Elbit Systems emerged as the top-performing stock, with its shares increasing by 6.41% to 217,500 agorot. This surge follows the company's announcement last month of securing contracts worth approximately $270 million with an international client for its SPECTRO and AMPS NG family observation, intelligence gathering, and target acquisition systems. These electro-optical systems, described as the sophisticated "eyes" for military platforms, utilize multiple sensors, laser designation, and AI-driven analytics to identify and track targets at long ranges, in various conditions.
Other notable gainers included Wisr GlobalTech, up 5.53%, Bazan, up 5.23%, Meitav Investment House, up 4.17%, and Rimmon, up 3.98%.
Conversely, Electra Real Estate experienced the most significant decline, with its stock plummeting 11.66% to 1,689 agorot. Palo Alto Networks saw a 6.47% decrease, and NICE shares fell by 4.51%. Camtek and Akrstein Group also registered losses.
Investors are also anticipating the release of the September Consumer Price Index (CPI) on Thursday. The Stock Exchange's research unit forecasts a monthly decrease of about 0.3% in the CPI, while the annual inflation rate is expected to rise to approximately 1.8% from 1.5% in August, nearing the Bank of Israel's target range. The monthly decrease is largely attributed to the transportation and communication sector, particularly a seasonal drop in airfare and fuel prices due to a reduced fuel excise tax. Despite the expected monthly dip, the annual inflation increase suggests underlying price pressures may persist, especially if the fuel tax reduction is not extended beyond October. The Bank of Israel's Monetary Committee is expected to keep the interest rate unchanged at its upcoming meeting on October 21st, despite inflation remaining within the target, due to global interest rate environments, rising bond yields, and economic recovery in Israel.
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