Teva, all-clear from Iraq lifted TASE to robust gains

Tel Aviv stocks finished the first session after Yom Kippur with gains of about 1%, boosted by the smiles sweeping the world markets on hopes that war with Iraq may be avoided.

Israeli stocks started the day with gains of 1.5% as investors learned that Iraq agreed to allow UN weapons inspectors to return. The indices were also lifted by the 0.4% rise in consumer prices in August, which was within the range of expectations, and of course the weighty Israeli drugmaker Teva, which keeps coming out with happy news.

The Maof-25 index ended up 1.2% to 375.9 points and the TA-100 index gained a more modest 1% to 363.6 points. The Tel-Tech-15 index slipped by 0.7%. The total volume of trade was a slim NIS 202 million.

With all due respect to Saddam, the talk of the town was Teva Pharmaceuticals (Nasdaq:TEVA), which was back in its usual position the top of the most-traded list. The Israeli drugmaker gained 3.1% on massive turnover of NIS 67.3 million, about a third of the total turnover, after announcing no less than four United States Food and Drug Administration approvals in the last several days, including final approval for Nizatidine capsules, used to treat duodenal ulcers. Annual sales of Eli Lilly's brand drug are $225 million.

Teva also got the nod for fluvoxamine maleate, the generic equivalent of Luvox, developed by Solvay Pharmaceuticals, the U.S. member of the Belgian Solvay group. It is used to treat obsessive compulsive disorder in children and adults.

In other Teva news, it is being sued by Eli Lilly for alleged patent violation over another flagship drug, Zyprexa used in the treatment of schizophrenia. The drug generates over $3 billion a year for Eli Lilly. Teva has filed for FDA permission to make the generic version of Zyprexa, claiming that the drug's patent is invalid.

And on yet another front, on Thursday last week a U.S. district court granted Teva's motion for a summary judgment to invalidate patent number 4,587,252 for a combination of hydrocodone and ibuprofen. Hydrocodone bitartrate and ibuprofen tablets are the AB-rated generic equivalent of Abbott Laboratories' Vicoprofen painkiller tablets.

There are a few other stocks on the Tel Aviv Stock Exchange other than Teva, and investors smiled on IDB group stocks this Tuesday, though they all weakened versus steeper gains in the morning. IDB Holding Corporation (TASE: IDBH ) gained 1.2%, IDB Development Corporation (TASE: IDBD ) rose 0.1% and Discount Investment Corporation (TASE: DISI ) finished up 0.8%.

Clal Industries and Investments (TASE: CII ), another IDB group member, which today reported selling its holdings in Mivtach Shamir Holdings (TASE: MISH ) to Meir Shamir and Ashtrom Industries (TASE: ) for NIS 26.1 million - surged by 2.7% on turnover of NIS 3.4 million.

The big banks are spiraled up, with Bank Hapoalim(TASE: POLI ) gaining 1.2% and Bank Leumi Le-Israel(TASE: LUMI ) gaining momentum throughout the day to end on a gain of 1.9%.

Koor Industries (NYSE:KOR) took a hammering, though it cut steeper morning losses to end only 1% down on high volume of NIS 6.5 million. Investors were evidently punishing the holding company over the sorry performance of affiliate ECI Telecom (Nasdaq:ECIL), which has shed 10% of its share price in three days of trade, reducing its market cap to a measly $185 million. And once upon a time, each of its units was evaluated in the hundreds of millions and more.

Liberty Properties surged 10.4% even though there were only a few - literally - transactions in its stock. Market sources say the company's controlling shareholder, the Elco group, was involved in those deals.