Tel Aviv stocks are sharply correcting upwards on Wednesday morning after closing Tuesday with 3% losses. Traders attribute the correction to an anticipated lull in hostilities between Israelis and Palestinians, to anticipation of gains on Nasdaq, and to rising markets in Asia and Europe.
The Maof-25 index is rising by 3.3% to 402.40 points. The TA-100 index is up 2.8% to 396.56 points and the Tel-Tech index is ahead by 3.76%. Turnover is light at NIS 80 million, after starting with a lively hop.
IBM Investment House manager Rami Dror says the market is encouraged by expectation of a lull in hostilities after the Israeli army withdrew from positions it yesterday reoccupied in Gaza. It helps that Nasdaq gained 4% after closing on Tuesday. Dror also believes that Nasdaq prices already incorporate the bad news regarding the first quarter. He does not expect another slide in prices unless particularly horrible reports are published today.
On the floor, holding company Shrem Fudim Kelner is hopping 5.7% after the press reported that SFK sold its holdings in Switzerland-traded Israeli telemedicine company Card Guard to UBS for around $25 million. Altogether UBS bought 23% of Card Guard's shares for $116 million.
Tech-oriented stocks are correcting today after taking a beating on Tuesday, ahead of expected Nasdaq gains today. Discount Investments is up 6.7%, IDB Development is rising by 5%, Formula Systems (Nasdaq:FORTY) is adding 3.7%, and Magic Software Enterprises (Nasdaq:MGIC) is gaining 6%.
Bank shares are among the gainers. Bank Leumi is adding 1.8% on hefty turnover of NIS 8 million, Bank Hapoalim is gaining 1.7%, and Bank Discount is up 2.5%.
Hebrew-language portal Walla is leaping 18% on NIS 150,000 volume of trade.
Most dual-listed stocks are rising strong after opening with positive arbitrage gaps, though some have more concrete reasons.
Retalix (Nasdaq:RTLX) is leaping 8% after announcing a $1.5 million agreement to provide its Storeline systems to New Clicks Holdings, a leading South African retailer.
Matav Cable Systems (Nasdaq:MATV) is gaining 6%. Matav stock has lost 50% this year.
Elbit (Nasdaq:ELBTF) is rising by 3.7%. Yesterday Bank Hapoalim rated Elbit stock a Buy and set its price target at NIS 28, 40% above Elbit's share price on the market.
Koor Industries (Nasdaq:KOR) is gaining 4.5% and Nice Systems (Nasdaq:NICE) is up 4.5%.