Tel Aviv stocks slid 2% on Tuesday
on bad macro news, terror

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.

Ha'aretz reported that Polar Investments and Africa Israel are in talks to form a group for acquiring IDB, and that the Israel Corporation is also interested. It is estimated that regardless which group acquires the control, the deal will be based on a company value lower than $1.3 billion, the value for the Kardan-IDB deal.

Polar dropped 3.4%, Israel Corporation closed down 2.2%. Africa Israel closed unchanged.

Koor Industries (NYSE:KOR) closed down 5%.

The Delek group dropped 4.7%.

Clal Insurance dropped 4.5%, Migdal Insurance closed off 4.3%.

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