Tel Aviv Stock Exchange Surges on Positive Economic Data
Translated & summarized from 0404 by baba
The Tel Aviv Stock Exchange saw a significant rise on Friday, with the TA-35 index climbing nearly 2%, driven by strong performances in technology, renewable energy, and insurance stocks. This surge follows positive economic news, including a drop in September inflation to 1.6% and a 0.6% decrease in apartment prices, fueling expectations of an interest rate cut. Key companies like Camtek, Enlight, and Menora Mivtachim saw substantial gains. El Al and Doral Energy are set to join the TA-35 index on November 5.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange's TA-35 index rose by up to 2.2% on Friday, with TA-90 and TA-125 also gaining.
- Technology, renewable energy, and insurance sectors led the market gains, with specific stocks like Camtek and Enlight surging.
- Positive economic data, including lower inflation and falling housing prices, supports expectations of an interest rate cut.
- El Al and Doral Energy will be added to the TA-35 index on November 5, while Damari, Shufersal, and Cannon will be removed.
- The dollar traded around 3.09 shekels amid the market activity.
The Tel Aviv Stock Exchange experienced a strong trading day on Friday, with the TA-35 index rising between 1.7% and 2.2% in afternoon trading, hovering around 4,230 points. The TA-125 index gained approximately 1.9%, and the TA-90 index climbed about 2.2%. This marks a weekly gain of roughly 2.3% for the TA-35 index. Leading the upward trend were the TA Technology index, up 3.3%; the Renewable Energy index, up 3.4%; and the Insurance index, up 3%. The dollar traded around 3.09 shekels.
Following recent global declines in chip stocks, Asian markets recovered this morning, and Wall Street closed higher last night. In Tel Aviv, chip stocks were prominent, with Camtek up 6.7%, Tower up 5%, and Nova up 4.5%. Other notable gainers included Nayax, up 5.7%, and Nice, up 2.6%. Insurance stocks also saw significant increases, with Menora Mivtachim rising 5%, Clal Insurance and Migdal each adding 4%, and Harel and Phoenix up 2.8% each. The stock of the Tel Aviv Stock Exchange itself also increased.
Renewable energy companies performed well, with Enlight jumping 5.8% and Nofar Energy up 5.7% after announcing agreements to supply energy storage systems for projects in Romania totaling about 860 megawatt-hours. Generative Capital rose 4.8%, and Energean gained 4.6%. In real estate, Mega Or climbed 5.5% and Azrieli Group rose 4.5%.
On the downside, Electra Real Estate fell about 5% and Opko dropped 2.7%, both after sharp gains yesterday. ICL decreased by 1.5%, and Teva saw a slight decline.
These market gains follow a 0.5% decrease in the September consumer price index, bringing the annual inflation rate down to 1.6%. Apartment prices also fell by 0.6% last month. These economic indicators strengthen expectations for an interest rate cut, with the yield on ten-year Israeli government bonds continuing to fall towards 4%. The Bank of Israel is scheduled to announce its interest rate decision on Wednesday, with the current rate standing at 3.25%.
El Al Airlines stock rose about 1% and Doral Energy gained 3.5% today, after it was confirmed yesterday that both companies will be included in the TA-35 index for the first time in the semi-annual index update, effective November 5. Damari, Shufersal, and Cannon will be removed from the TA-35 and moved to the TA-90 index.
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