G City Deal Collapses as Israeli Market Awaits Tel Aviv Stock Exchange Opening

The G City real estate deal has been officially canceled after Haim Katzman decided last night to call off the transaction. Katzman informed Tzachi Abu of his decision following a review of the agreement between Ari Nadlan and Yespro, controlled by Kidan Dahari and Yaron Adiv. The contract stipulated that the buyers of G City shares from Norstar, controlled by Katzman, would seek to quickly gain control of the company, prompting Katzman to withdraw.

Meanwhile, the Tel Aviv Stock Exchange is preparing to open after a strong rally on Wall Street, where the Dow Jones rose 1.3% to a new high, the S&P 500 gained 1.5%, and the Nasdaq increased by 2.1%. Oil prices partially recovered with Brent crude up 1.4% and WTI rising 1% following a previous drop of over 5%. The 10-year US Treasury yield stabilized at 4.69%, down 7 basis points from yesterday, while Israel's 10-year bond yield stands at 3.86%.

The Wall Street gains have led to positive arbitrage openings in dual-listed chip stocks: Tower Semiconductor is up 7.5%, Camtek 4.8%, and Banova 2%. Today, Tower Semiconductor and the Tel Aviv Stock Exchange will release their Q2 earnings reports. Yesterday, the Tel Aviv market closed lower with the TA-35 down 0.9%, TA-125 down 1%, banks index down 0.8%, real estate down 1.9%, construction down 2.7%, and cleantech down 2.2%. The insurance index was the only gainer, rising 2.1%.