This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

With bond yields at 12%, who needs stocks: Israeli stocks sink 2%

Tel Aviv stocks ended down 2% Sunday with losses almost across the board, in the wake of Wall Street's soggy performance late last week.

America's woes and the beating of regional war drums aside, there just isn't much enthusiasm for stocks anyway. "With bonds yielding 12%, who needs stocks?" said one market player. The yield on fixed-interest shekel denominated Shahar bonds has climbed above 12%. But Roy Laufer of Nessuah Zannex points out that the drop in Shahar bonds comes one day before a treasury offering of NIS 300 million worth of series 2670 bonds.

The Nasdaq tumbled 4% to end the week at a low of 1,139 points and the Dow rumbled south by another 3%, to 7,500 points.

In Tel Aviv, spooked investors sent the Maof-25 index gradually spiraling down 1.8% to 333.9 points, while the Tel Aviv-100 index fell 2% to 325.1 points and technology stocks retreated by 3.1%, weighed down by dual-listed shares. These were some of the steepest losses in weeks, as Israeli stocks had remained relatively resilient to the turbulence shaking world markets.

The total volume of trade was razor-thin at NIS 135 million, attesting to the lack of interest in stocks.

Drugmaker Teva Pharmaceuticals (Nasdaq: TEVA) sank by a hefty 2.5% on turnover of NIS 15.5 million, after starting on an arbitrage gap of 1.2%.

Other dual-listed shares pulling down the index included Partner Communications (LSE:PTNRq; TASE, Nasdaq: PART ) , which fell by 1.9%, cutting a steeper mid-day loss. Another loser was Elron Electronic Industries (Nasdaq:ELRN), which sank by 1.2%, having cut a starting drop of almost 2%.

Scitex Corporation (Nasdaq:SCIX), which has gained 15% in the last two trading days, tumbled 7.3% on profit-taking.

The IDB group of holding companies skulked in the doghouse, with IDB Holding Corporation (TASE: IDBH) losing 0.7%, IDB Development Corporation (TASE: IDBD) sinking 2.4% and Discount Investment Corporation (TASE: DISI) down 2.7%. Another group company, Clal Industries and Investments (TASE: CII ) , dropped by 3%.

The big banks were also in disfavor today, with Bank Hapoalim (TASE: POLI ) retreating by 1.9%, and Bank Leumi (TASE: LUMI ) sagging by 2.4% to its lowest point since February 1999. Israel Discount Bank (TASE: DSCT) lost 0.8%.

Analyst Ronit Goodman of Nessuah Zannex said today that the recent downgrade the banks suffered at the hands of Standard & Poor's damages mainly their image in the eyes of foreign institutions. But over the long run, she warned, the marginal climb in the costs of credit will roll over onto companies, with a consequent increase in defaults and bankruptcies, and hence a jump in provision for doubtful debt by the banks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,151.62 +177.31 1.04%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.5670 +17.3410 0.38%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs