Teve, El Al, Shufersal Among Major Changes in Tel Aviv Stock Exchange Indices
Translated & summarized from Ice by baba
The Tel Aviv Stock Exchange is set to update its leading stock indices, with significant changes expected for companies like Teve, El Al, and Shufersal. Teve's weighting will be reduced due to recent gains, potentially causing sell-offs of up to 1.5 billion shekels. El Al and Doral Energy will join the TA-35 index, while Demri, Shufersal, and Kanon will be removed. The TA-90 index will also see new additions, including Tidhar and Avisarur.
The story in 5 lines · by baba
- Teve's weighting in the TA-35 index will be reduced, potentially leading to 1.5 billion shekels in sell-offs.
- El Al Israel Airlines and Doral Energy are set to be added to the TA-35 index.
- Demri, Shufersal, and Kanon will be removed from the TA-35 index.
- Palo Alto Networks and Tower Semiconductor are expected to see significant trading volumes.
- Avisarur is set to join the TA-90 index just three months after its stock market debut.
The Tel Aviv Stock Exchange is preparing for a significant rebalancing of its leading stock indices, scheduled to take effect after trading concludes on Thursday. These adjustments are expected to cause substantial shifts in the weighting of major companies, introduce new stocks, and remove others, potentially driving trading volumes into the billions of shekels.
Teve (Teva Pharmaceutical Industries) is anticipated to draw considerable attention due to its recent significant price increases. These gains have pushed Teve's weighting in the TA-35 index beyond the 7% maximum limit. Consequently, to reduce its index weight, the stock is projected to face sell-offs amounting to approximately 1.5 billion shekels.
Palo Alto Networks, which joined the leading indices in August via the exchange's fast track, will also be a focal point. Its required increase in index weighting is expected to generate trading volumes of around 1 billion shekels. Tower Semiconductor is also poised for significant demand as its weighting in the TA-35 index increases, following a period of relative weakness.
Other dual-listed stocks, including Elbit Systems, Gilat, and Kanon, are expected to see trading volumes in the hundreds of millions of shekels each. The changes extend beyond trading volumes, with two prominent companies set to enter the TA-35 index: El Al Israel Airlines and Doral Energy. El Al's inclusion reflects its standing in the Israeli aviation market and its operational resilience, while Doral benefits from the growth trend in the renewable energy sector.
Conversely, three companies are slated for removal from the main index: real estate firm Demri, facing a weak housing market; Shufersal, which has lost about 33% of its value since its May peak; and holding company Kanon. Following these changes, the TA-35 index will return to its intended 35-stock composition, having temporarily held 36 stocks since Palo Alto Networks' August addition.
The TA-90 index will also see notable changes, with several companies that recently went public expected to join. Among them are Tidhar, set to enter less than six months after its shares began trading, and Bagira. Avisarur is particularly noteworthy, expected to join the TA-90 index just three months after its stock market debut, making it one of the newest additions in this update.
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