Economy12:50 · 32m ago

Discount Brokerage Predicts Damari Exiting TA-35, New Stocks Joining TA-125 in November Index Update

Globes

Translated & summarized from Globes by baba

Key points

01Damari is expected to leave the TA-35 index and move to TA-90, attracting about 230 million shekels in demand.
02New TASE rule applies graduated weighting to stocks entering TA-125, spreading full weight over three updates.
03Five stocks, including Alpha Tau and Tadmor, are forecasted to enter TA-125, with demand ranging from 12 to 84 million shekels.
04Five stocks, including Sela Nadlan and Qualitau, are expected to exit TA-125 with significant supply volumes.
05The TA-125 currently has 126 stocks due to Palo Alto Networks' fast-track inclusion; merger completion will restore it to 125.
06Doral is borderline for TA-35 entry; if it joins, another stock like Cannon or Shufersal may exit alongside Damari.

In this story

People

Yigal Damari

OrganizationsDiscount Brokerage, Tel Aviv Stock Exchange, Damari, Doral, Cannon, Shufersal, Telsys, Afcon

PlacesTel Aviv

The story · English

The upcoming index update at the Tel Aviv Stock Exchange (TASE) is scheduled for November 5, with the cutoff date on October 15. Discount Brokerage economists have released a preliminary forecast on the expected changes to the main indices. They anticipate that Damari, a residential construction developer controlled by Yigal Damari, will be removed from the TA-35 index and moved to the TA-90 index, generating an estimated demand of about 230 million shekels. Damari has previously managed to remain in the TA-35 despite volatility, including a last-minute institutional share sale raising 420 million shekels in May.

The economists note that Doral is on the borderline for entering the TA-35, and if it joins, another stock such as Cannon, the Tel Aviv Stock Exchange itself, or Shufersal might exit alongside Damari. A key focus of this update is the implementation of a new TASE rule applying a graduated weighting factor to stocks entering the TA-125 index, spreading their full weight over three updates (0.25, 0.5, and 1.0 respectively). This rule will now also apply to existing stocks moving into leading indices, such as Telsys and Afcon.

Currently, the TA-125 index contains 126 stocks due to the fast-track inclusion of Palo Alto Networks. Discount expects that the completion of the merger between Israel Canada and Acro will restore the index to 125 stocks, balancing five entries and five exits. Expected entrants include Alpha Tau, a biomedical company developing cancer treatments, with a demand of about 26 million shekels; Telsys with 39 million shekels; infrastructure firm Afcon with 35 million; real estate company Tadmor with 84 million; and security firm Begira with 12 million shekels. Demand will continue over subsequent updates due to the weighting factor.

Stocks forecasted to exit the TA-125 include Sela Nadlan with a supply of approximately 276 million shekels, Assets and Building with 45 million, semiconductor testing equipment maker Qualitau with 246 million, defense company Arit Industries with 145 million, Electra Real Estate with 74 million, and Vishur Globaltech with 34 million shekels. Several other stocks are also near the borderline for removal, including Gilat, Ackstein, Israel Shipyards, Neto Melinda, Danal, RP Optical, and Delta Brands.

Read the original at Globes