Tel Aviv stocks closed with 0.7% gains on Monday. Trading was dull most of the session as investors awaited Bank of Israel Governor David Klein announcement on key lending rates at 16:30 today. The governor raised interest rates by 0.6%, from 3.8% to 4.4%.
Following the announcement, the Maof-25 index was was up 0.8%, and ended the session with 0.7% gains to 419.8 points. The TA-100 index closed up 0.5% to 403.0 points. Technology shares dropped 0.7%. Total volume was low at NIS 100 million.
Mizrahi Bank closed off 0.1%. Controlling shareholder Muzi Wertheim has exercised the option he received five months ago from Abe Feinberg's heirs, allowing Wertheim to acquire the heir's 12.7% interest in the bank. Wertheim is to assume responsibility for the loans taken by the heirs for the purpose of the deal.
Bank Hapoalim closed up 0.1%, Bank Leumi gained 0.2%, Bank Discount closed down 0.4%. Yedioth Ahronoth today published an interview with Supervisor of Banks Yitzhak Tal who said that he has advised the banks to distribute dividends this year only in special cases. Tal said that dividend distribution should reflect economic developments in coming years, and not depend only on current profitability
Market players said that investors who regard investment in bank stocks as investment in bonds with positive dividend yield, may not acquire such shares due to Tal's demand.
IDB Holding Corporation climbed 0.6% and Kardan closed up 0.1%, following estimates that Kardan might renew negotiations for acquiring control in the IDB group. This depends on whether Oudi Recanati will agree to lower the price of his IDB shares.