Tel Aviv Stock Exchange Ends Lower Amid Volatile Trading
Translated & summarized from Bizportal by baba
The Tel Aviv Stock Exchange closed lower after a volatile trading day, with the TA-35 index down 1.1%. Businessman Rani Zim is increasing his stake in his company, Rani Zim Commercial Centers, for NIS 75 million. Refinery company Bazan warned of potential operational harm if its business licenses are not renewed by Haifa Municipality. Defense firm Civan Technologies saw its stock fall despite potential large orders, and other companies like Max Stock and Malam-Team saw gains.
The story in 6 lines · by baba
- Tel Aviv Stock Exchange's TA-35 index closed down 1.1% after a volatile trading session.
- Rani Zim is buying a 7.5% stake in his company for NIS 75 million, valuing it at NIS 1 billion.
- Bazan warned of potential operational harm if Haifa Municipality revokes its business licenses.
- Defense firm Civan Technologies' stock dropped despite potential orders up to $40 million.
- Max Stock and Malam-Team shares rose, while Qualitea shares declined.
- Israel Aerospace Industries expects to be listed on the stock exchange within the next year.
The Tel Aviv Stock Exchange concluded a volatile trading day with significant declines, particularly in the final hour. The TA-35 index, which had shown gains earlier and even climbed around 4 PM, reversed course to close down approximately 1.1%. The TA-90 index fared slightly better, falling around 0.4%. The pressure intensified in the last trading hour, pushing the indices away from their daily highs and closing near their lowest points.
Businessman Rani Zim is increasing his stake in his shopping center company, Rani Zim Commercial Centers, by purchasing 7.5% of its shares from the Hageg Real Estate group for NIS 75 million. This transaction values the company at NIS 1 billion, a premium of about 30% over its market price, though it aligns with its book value. Zim also secured an option to buy an additional 7.5% at a higher price, which could lead to the end of joint control with Hageg. Hageg is selling to reduce debt and free up cash for other investments, while Zim aims to increase his exposure to the company's assets and future growth, potentially regaining control. Hageg initially invested approximately NIS 195 million in the company when Zim faced difficulties.
In other market news, defense company Civan Technologies saw its stock drop 3.7% after recent positive reports. The company announced memorandums of understanding with US-based Aelyon for developing autonomous systems, with a potential for orders up to $40 million, contingent on Aelyon's fundraising and sales capabilities. Civan also reported a follow-on order of about NIS 5.2 million, which remains cancellable. Additionally, a memorandum of understanding with a European defense manufacturer outlines potential procurement of hundreds of systems by 2029.
Refinery and petrochemical company Bazan issued a warning of potential "material harm to its operations" if Haifa Municipality does not renew its business licenses, potentially halting operations. This follows an earlier statement where Bazan downplayed the impact of a benzene pollution incident on maintenance work. The municipality's threat represents a broader risk to the company's continued operation.
Other notable stock movements included Max Stock rising 5.2% and Malam-Team adding 4.8%, while Qualitea fell 5.7%. In bond markets, the Bank of Israel's credit officers survey indicated a continued decrease in demand for credit from construction and real estate companies in the third quarter, with banks increasing credit margins for them. Conversely, banks are easing lending for small businesses and household consumer loans.
Israel Aerospace Industries Chairman Boaz Levy expressed confidence that the company will be listed on the stock exchange within the next year, following a nearly six-year delay, alongside efforts to advance the IPO of Rafael. He stated that regulatory and legal issues hindering the process are being addressed.
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