El Al Stock Soars, Securing Spot in Prestigious TA-35 Index After Hijacking Attempt
Translated & summarized from Now 14 by baba
El Al Israel Airlines has been added to the prestigious TA-35 stock index for the first time, driven by a stock surge following an attempted hijacking on a Flydubai flight and strong quarterly profits. Doral Energy, a green energy company, will also join the index due to its significant stock growth. Three companies, Shufersal, Demri, and Canon, will be removed from the TA-35. These index changes will impact investment funds that track the market.
The story in 6 lines · by baba
- El Al Israel Airlines will join the TA-35 stock index for the first time after its stock price surged.
- An attempted hijacking on a Flydubai flight is cited as a factor boosting investor confidence in El Al.
- Doral Energy, a green energy firm, will also be added to the TA-35 index due to strong stock performance.
- Shufersal, Demri, and Canon are being removed from the TA-35 index.
- The index changes are part of the Tel Aviv Stock Exchange's semi-annual review and will take effect in November.
- Inclusion in the TA-35 index can influence trading activity by exchange-traded funds.
El Al Israel Airlines has been included in the Tel Aviv Stock Exchange's flagship TA-35 index for the first time, following a significant surge in its stock price. This rise was notably spurred by an attempted hijacking on a Flydubai flight, which, according to the report, led investors to anticipate increased preference for the Israeli airline among Israeli travelers. The incident occurred after El Al reported a nearly doubled profit in the preceding quarter. Despite strong financial results, the stock had been stagnant until the hijacking attempt, after which it climbed sharply within two days to meet the market capitalization requirements for the index.
Alongside El Al, Doral Energy will also join the TA-35 index. Doral's stock has seen a remarkable increase of over 150% in the past year, reaching a market value exceeding 11 billion shekels. Unlike El Al's surge, Doral's gains are attributed to broader trends in the green energy sector, driven by company revenue growth and investor capital flowing into the industry. Even with a recent dip since summer, its earlier performance was sufficient for index inclusion.
In a less common move, three companies, Shufersal, Demri, and the holding company Canon, will be removed from the TA-35 index. The index will now comprise 35 companies, with only two additions and three removals, a deviation from the usual balance. This unusual composition stems from the recent inclusion of cybersecurity giant Palo Alto Networks, temporarily bringing the index's total to 36 companies.
The inclusion in a major index like the TA-35 carries significant implications beyond prestige. Exchange-traded funds and tracking funds that mirror the index must adjust their portfolios, potentially leading to increased purchases of newly added stocks like El Al and Doral, and sales pressure on those being removed. However, the net effect on stock prices depends on the volume of trades by various funds and the weight each stock holds in the new index.
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