Israeli Stocks Open Mixed Ahead of Elections, Nice Leads Gains
Translated & summarized from Bizportal by baba
Israeli stocks are trading mixed on the final day before elections, with tech firm Nice leading gains with a 5% arbitrage gap. Historically, the market has performed well in the year following elections, though indecisive outcomes can precede weakness. Prime Minister Netanyahu's digital currency proposal to circumvent sanctions was countered by the Bank of Israel, which deemed it impractical. El Al Airlines is also seeking approval for a significant compensation package for its chairman.
The story in 5 lines · by baba
- Nice stock is expected to open with a 5% positive arbitrage gap on the Tel Aviv Stock Exchange before elections.
- The Tel Aviv 125 index has historically gained 16.4% in the year following elections since 2003.
- Bank of Israel stated crypto cannot bypass sanctions, contradicting Prime Minister Netanyahu's proposal.
- El Al Airlines chairman is seeking a 7 million shekel annual compensation package.
- Cellcom is considering acquiring control of iCon Group for approximately 500 million shekels.
Israeli stock markets are set for their final trading day before national elections, with futures indicating a mixed opening. The Nasdaq futures are up 0.2% to 0.3%, following a mixed close on Wall Street Friday where the Nasdaq fell 0.2%, the S&P 500 dropped 0.5%, and the Dow Jones lost 1.2%, though the chip index rose 0.4%.
Technology company Nice is expected to open with a significant positive arbitrage gap of approximately 5% on the Tel Aviv Stock Exchange, after its stock climbed 3.4% in New York on Friday. Other arbitrage stocks showed varied performance: Palo Alto Networks is projected to open with an 8.3% positive gap, Camtek with 2.1%, Elbit Systems with 0.7%, Nova with 0.6%, and ICL with 0.1%. Conversely, Tower Semiconductor is expected to open with a 0.8% negative gap, and Teva Pharmaceutical Industries, which fell 2% in New York, with a 0.6% negative gap.
Historically, the Tel Aviv 125 index has shown an average return of about 16.4% in the 12 months following elections since 2003, compared to an average annual return of 11.5% over the entire period. However, elections without a clear outcome have preceded periods of weakness, with an average drop of about 5% in the three months prior.
Prime Minister Benjamin Netanyahu's proposal to prepare for banking sanctions using digital currencies and blockchain has drawn a response from the Bank of Israel. The central bank stated that crypto cannot serve as a workaround for sanctions and emphasized the importance of maintaining ties with trade partners. The article notes practical challenges, including the traceability of crypto transactions and the integration of economies exporting billions in high-tech goods into international clearing systems.
In other market news, El Al Airlines is seeking approval for its chairman, Amikam Ben Zvi, to transition to a full-time role with an annual compensation package of approximately 7 million shekels. The airline's stock is also slated for inclusion in the TA-35 index. Additionally, Cellcom is exploring the acquisition of control in iCon Group, the importer of Apple products and owner of the iDigital chain, with preliminary negotiations valuing the company at around 500 million shekels.
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