Israeli shares closed mixed as Nasdaq added 1.8% - TheStreet

Leading indicators on Wall Street posted gains on Wednesday after opening with mild losses. The Nasdaq added 1.8% to 2,539 points and the Dow Jones gained 1% to 10,803 points.

While the Holiday Season is characterized by dull sessions, the market did not fail to take note of the profit warning released this morning by software security company

Networks Associates

(Nasdaq:NETA), which lost 62%. The plunge affected its Israeli rival

Check Point Software Technologies

(Nasdaq:CHKP), which closed off 4% to $135.1.

Still, traders hope that today's gains mark the end of the long slump, and that the market will live up to its tradition of posting gains in January. In addition, traders anticipate that the Federal Reserve will cut key interest rates, which could likewise lift stocks.

Israeli shares traded mixed, without sharp fluctuations and in line with the general contained mood.

But several Israeli companies today released profit warnings, which negatively affected their shares.

Magic Software Enterprises

(Nasdaq:MGIC) lost 5% to $2.4, which is 90% short of the price of shares in March this year. In its profit warning for the fourth quarter of 2000 the company said revenues will fall 20% short of forecasts, and that it expects a loss of $6 million.

Magic's profit warning is indicative of the slowdown in Magic's market, and of the company's unsuccessful launching of its new focus on e-business applications and customer relationship management tools, which should have become the company's new growth engine.

Web-performance solutions company RadView Software (Nasdaq:RDVW) plunged 19.2% to $2.5 on high turnover. RadView released before opening today a warning that its revenues in the fourth quarter of 2000 will total $2.7 million to $3 million against the sales forecast of $3.6 million. RadView's sales in the fourth quarter of 2000 are expected to fall short of its sales in the third quarter even though the fourth quarter is considered a strong quarter for companies that sell products to organizations. The company expects a loss of 24 cents per share in the fourth quarter, against the predicted loss of 18 cents per share.

Nur Macroprinters

(Nasdaq:NURM) closed off 14.3% to $8.2 after today announcing that it has completed the registration of about 1.5 million shares that in the past were issued via a private offering.

Software company

Sapiens International

(Nasdaq:SPNS) gained 15.4% to just less than a dollar. The company today announced that it has completed a $15 million financing round by private placement. The investors were the venture capital fund Magnum Technologies Fund and the Israeli company

Formula Systems

(Nasdaq:FORTY). The companies invested in bonds convertible to Sapiens shares at an exercise price of $1.5.

Sapiens shares were recently slammed after the company released a profit warning in the third quarter of 2000 following the cancellation of its planned merger with

Ness Technologies

. As of the beginning of September, Sapiens shares have lost over 80%. Today's gains apparently make sense as the financing round provides the company with much-needed cash for its immediate needs, and points to the strategic partners' faith in the company.

BVR Systems

(Nasdaq:BVRS) leaped 28.6% to $2.3. Yesterday the stock added 100% after the company announced it has won a $20 million contract to provide an aircraft simulator to a foreign air force.

AudioCodes

(Nasdaq:AUDC) leaped 19.8% to $11.8 after a long slump, and cable modem manufacturer

Terayon Communication Systems

(Nasdaq:TERN) gained 13.3% to $4.3 after losing over 90% in the last two months.