Cease-Fire Lifts Israeli Stocks

TEL AVIV -- Just days into the cease-fire between Israel and Hezbollah, the Israeli market seems determined to pickup right where it left off before the war. A host of positive bank earnings supported war-resistant bulls, as Tel Aviv's main indices climbed to pre-conflict levels.

Shares of Bank Hapoalim, Israel's largest bank, closed 3.2% higher on Thursday after it reported second-quarter net income of roughly $150 million, reflecting a 16% return on equity. The bank's shares completed a 6% jump since the cease-fire took effect on Monday.

The TA-25 index completed a 5.4% weekly climb, closing just above its July 11 level -- the day before Hezbollah attacked Israel's northern border and kidnapped two Israeli soldiers. The Israeli banks index added 4% on Thursday, completing a 10.5% weekly surge, reflecting heavy buying on the part of foreign institutional investors. (Israeli markets are closed Fridays and Saturdays.) ...