Tel Aviv Stock Exchange Ends Higher as Construction Sector Surges
Translated & summarized from Globes by baba
The Tel Aviv Stock Exchange closed higher, led by a 2.9% surge in the construction sector, while the TA-35 index rose 0.2% and the TA-90 index jumped 1.4%. Technology stocks, particularly semiconductors, weighed on the market, with Tower Semiconductor falling nearly 5%. Notable individual stock movements included Israel Canada's rise ahead of its merger and defense companies like Israel Shipyards and Third Eye seeing significant gains due to major deals. The shekel weakened slightly against the dollar.
The story in 6 lines · by baba
- Tel Aviv Stock Exchange closed higher, driven by a 2.9% rise in the construction sector.
- The TA-35 index gained 0.2%, while the TA-90 index surged 1.4%.
- Semiconductor stocks, including Tower Semiconductor, dragged down the technology sector.
- Israel Canada stock climbed nearly 5% amid its impending merger with Acro.
- Defense companies Israel Shipyards and Third Eye saw significant gains from major deals.
- The shekel weakened by 0.15% against the dollar by market close.
The Tel Aviv Stock Exchange concluded trading on a positive note, with the TA-35 index seeing a marginal 0.2% increase, weighed down by technology stocks. In contrast, the TA-90 index demonstrated strength, surging by 1.4%. The construction sector was the primary driver of the positive sentiment, with its index jumping 2.9%. Other sectors also performed well, including communications, software, insurance, and finance, which saw gains of 2%, 1.8%, 1.7%, and 1.4% respectively.
However, the semiconductor sector acted as a drag on the main index. Tower Semiconductor experienced a nearly 5% drop, and alongside declines in Nova, Camtek, and Qualitau, pulled the TA-Technology index down by 0.5%. The oil and gas sector also saw a 0.6% decrease, with Navitas notably underperforming, and the food sector lost 0.4%.
Among individual stocks, Israel Canada continued to attract interest due to its impending merger with Acro, climbing nearly 5%. This deal proceeds despite a downturn in the luxury housing market, which has erased approximately 3 billion shekels from the combined value of the two companies. A significant cash flow relief for Israel Canada comes from a deferred payment of 310 million shekels to Acro's controlling shareholders, reducing the immediate cash requirement to 930 million shekels.
Defense companies also had a strong trading day. Israel Shipyards saw continued gains amid reports of a major deal with Cyprus valued at over $100 million. Third Eye, a company developing AI systems, surged after signing two binding memorandums of understanding with U.S.-based Aelyon for a collaboration potentially worth $40 million.
In infrastructure and energy, Generation Capital closed higher after successfully raising 1.16 billion shekels in debt to finance its acquisition of Shikun & Binui Energy. Shapir Engineering also garnered attention following its agreement to sell its gas distribution company, Super N.G., to Al-Eyd Fund for 230 million shekels.
The local currency market saw a reversal, with the dollar weakening by 0.15% to trade around 3.0926 shekels by the close.
