Tel Aviv stocks are off 0.4% Monday morning as communications equipment giant Ericsson (Nasdaq:ERICY) plunges 20% in pre-bell trade in Europe.
Ericsson today released its financial results for Q1, posting heavy losses. The results were worse than expected.
The Maof-25 blue chip index is off 0.4%, the TA-100 index is down 0.7%, and technology shares are off 0.8%.
Despite the negative start, market sources estimate that the recent positive trend will continue in coming days, although stocks are likely to post more moderate gains. The estimate is based on relative security calm, and to the army's pullout from most Palestinian town centers. In addition, Prime Minister Ariel Sharon on Sunday announced the end of the Defensive Shield operation that began some three weeks ago, in the course of which army forces conducted anti-terror operations in Palestinian territory. Other factors contributing to the lifting of uncertainty: Yesterday, the Finance Ministry presented PM Sharon a NIS 13 billion emergency economic plan, involving budget cuts in many areas.
DBM CEO Rami Dror expects increased impact by foreign markets on TASE in coming days, after TASE was largely affected by developments at home. Options expire Thursday, and Dror estimates that speculators on the Maof-25 index will try moving the index toward expiry into the range of 400 points to 410 points.
IDB group stocks continue to attract attention given the Ganden group's advanced talks to acquire control in IDB Holding Corporation at a $1 billion value, 30% above the market price.
IDB Holding Corporation is up 1.1%, IDB Development Corporation is rising 1.2%, Discount Investments if off 0.6%, Clal Industries is up 0.4%.
Drug giant Teva Pharmaceuticals (Nasdaq:TEVA) is slipping 0.1%.
Matav Cable Systems (Nasdaq:MATV) is off 0.9%. Matav is expected to draw much attention given recent developments in cable TV firm Tevel, expected to merge with Matav.
Electra Consumer Products is trading unchanged, Bank Hapoalim cut its price target to NIS 33 from NIS 52. The new price target is 25% above the market.
Bank Hapoalim is down 0.1%, Bank Leumi is trading unchanged.
Phone company Bezeq is off 0.4%.