Tel Aviv Stock Exchange to Open Amid Global Market Fluctuations
Translated & summarized from Ice by baba
The Tel Aviv Stock Exchange is expected to open on Wednesday influenced by Wall Street's decline and mixed Asian market trends. US markets fell due to higher-than-expected inflation data, increasing interest rate hike expectations. Despite global volatility, the TASE closed Tuesday with strong gains, led by financials. Several companies, including Gilat and Tower Semiconductor, reported significant stock movements and adjusted forecasts.
The story in 6 lines · by baba
- Tel Aviv Stock Exchange to trade amid global market shifts and US inflation concerns.
- US markets declined Tuesday, with Dow Jones, S&P 500, and Nasdaq all posting losses.
- October US inflation rose 0.4%, fueling expectations of a December interest rate hike.
- Asian markets showed mixed performance, with Japan and South Korea rising, Hong Kong falling.
- TASE closed Tuesday with significant gains, particularly in insurance and banking sectors.
- Gilat Satellite Networks shares dropped sharply after lowering annual revenue forecast.
The Tel Aviv Stock Exchange (TASE) is expected to trade on Wednesday amidst a mixed performance in Asian markets and following declines on Wall Street. On Tuesday, the Dow Jones Industrial Average fell by 0.30%, the S&P 500 lost 0.38%, and the Nasdaq Composite dropped 0.74%. This downturn in the US was partly influenced by the release of US Consumer Price Index data for October, which showed a 0.4% increase from September, exceeding the expected 0.3%. Consequently, the yield on 10-year US Treasury bonds rose to 4.99% from 4.88% the previous evening, fueling expectations of a potential interest rate hike in December.
Futures trading ahead of the US market open on Wednesday indicated a rebound, with Nasdaq 100 futures up 1.5% and S&P 500 futures gaining 0.6%. Asian markets showed varied results: Japan's Nikkei index climbed 1.4% and South Korea's Kospi rose 2.4%, while Hong Kong's Hang Seng index decreased by 0.7%, and Shanghai's index saw a 0.6% increase.
In contrast, the TASE closed Tuesday with significant gains. The TA-35 index rose by 2.17%, the TA-125 by 2.02%, and the TA-90 by 1.59%, primarily driven by insurance and banking stocks. However, Gilat Satellite Networks experienced a sharp decline of 18.16% on a trading volume of NIS 51.1 million after the company lowered its annual revenue forecast from $500-520 million to $455-475 million. Tower Semiconductor also saw a negative arbitrage gap of 4% after rising 3.18% in Tel Aviv but falling 3.08% in New York.
Azrieli Group fell 1.55% on NIS 167.1 million in turnover, following reports of a freeze on electricity allocations in Norway. The company stated that this is unlikely to significantly impact its revenue-generating facilities or those under construction. The stock exchange's own shares rose 0.21% before its earnings report, which showed a 19% increase in quarterly revenue and a 37% rise in profit to NIS 68.3 million.
Wednesday marks another day for earnings reports on the TASE, with notable companies including Bezeq, ICL (Israel Chemicals Ltd.), and Nayax scheduled to release their results. Bezeq reported a 44% increase in comparative net profit to NIS 372 million and a 1.2% rise in revenue to NIS 2.17 billion, maintaining its annual profit forecast of NIS 1.15-1.2 billion.
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