The Tel Aviv Stock Exchange sustained strong gains throughout Monday as Teva Pharmaceuticals (Nasdaq:TEVA), insurance, banks and communications stocks regain ground after steep losses on Sunday.

Due to daylight savings, Wall Street opened at 15:30 local time, giving the locals ample opportunity to react to events. Gains on the Street encouraged a spate of buying that lifted the Tel Aviv indices to close sharply up.

The Maof-25 index ended up 4.3% and the TA-100 index rose 3.6%, with slightly weaker performance by tech stocks, up 2.3%. Total turnover was moderate at NIS 312 million.

Partner Communications (Nasdaq, TASE: PTNR, LSE:PCCD) leaped 10.3% after being rated a Strong Buy yesterday by Lehman Brothers, which set a price target of $12.

Teva Pharmaceuticals (Nasdaq:TEVA) jumped 5.8% on turnover of NIS 47 million and the Bezeq phone company gained 5.5% on a volume of NIS 43 million.

Nice Systems (Nasdaq:NICE) finished up another 4.2% on general assessments of high demand for its security products.

Clal Insurance saw early gains shrink, finally ending 1% up after shedding 16% since the terror attacks on the U.S. on September 11. Migdal Insurance climbed 2.1% after losing 14%. Yesterday the press reported that U.K. insurers have begun selling assets in order to gain liquidity to handle suits subsequent to the terror attacks.

Tel Aviv-based investment house IBI predicts that Clal Insurance will be the most affected by the events of Israel's insurers because of its greater component of general insurance. This assessment is likely to depress Clal Insurance's share price. Defense systems maker Elbit Systems (Nasdaq:ESLTF) rose 5.7%, sustaining its positive momentum since the terror attacks on the U.S. on September 11.

Elbit (Nasdaq:ELBT) rose 3.2% and Elron Electronic Industries (Nasdaq:ELRNF) ended up 2.9% after yesterday reporting managerial changes at their to-be-merged entity.

The banks rallied from a bad week, with Hapoalim gaining 2.8% and Leumi rising 2.1%.

Mizrahi was lifted by a press report that businessman Mozi Wertheim is buying another $100 million worth of stock to increase his holdings in the bank from 12.5% to 25%. Wertheim is reportedly paying a premium of 43% for Mizrahi's stock, which is evidently helping lift the share on the floor. Mizrahi rose 3.1%.