Tel Aviv stocks closed down 2% on Tuesday. The Maof-25 blue chip index closed off 2.1% to 416.4 points, and the TA-100 index dropped 1.9% to 401.9 points. Technology shares dropped 1.1%. Total turnover was NIS 331 million.
Leading indices dropped 1.5% at opening, and losses progressively deepened. Blue chips at one point were down 2.3% to 415.7 points
The negative mood was attributed to negative economic data published on Monday. In Q4 gross domestic product shrank 7.2%, and unemployment worsened to 10.2%, up from 9.6% in Q3. In addition, the dollar on Monday rose by 1% and went on rising today.
Negative backwinds from Europe and Nasdaq futures didn't help, and neither did the continued fighting in the region.
Elbit Systems (Nasdaq:ESLT) gained 2.2% on NIS 8.5 million volume, after winning a Defense Ministry tender. Elbit Systems will be providing the Israel Air Force with a new light trainer aircraft. The deal is expected to generate several million shekels a year.
Bezeq was at the center of attention, and dropped 4.3% on high turnover, NIS 44 million. The company issued a profit warning for 2001, and said results will show marked negative effect relating to substantial losses in subsidiary Pele-Phone, where Bezeq owns 50%. Cellular provider Pele-Phone is expected to make big one-time write-downs in Q4 on capital equipment. The results do not indicate deteriorated performance, Bezeq said.
IDB group stocks again closed down, following the cancellation of the Kardan-IDB deal for the control in IDB. IDB Holding Corporation closed off 1.2%, IDB Development Corporation closed down 2.5%, Discount Investments dropped 4.1%, and Clal Industries closed off 3%. IDB stocks have lost an aggregate 8% since the reports of the deal's collapse.