Koor Industries (NYSE:KOR) and the big banks slid to close in the red on Sunday, but the indices proved largely resilient despite the slim turnover.
Blue chips had hovered around the flatline with a negative bias all day, after Friday drops on Nasdaq and expectation of additional terror attacks in Israel and the United States. Also, investors assume the central bank will announce a steep rate hike tomorrow, of around 1%.
The Maof-25 index drooped by 0.6% down to 386.3 points and the Tel Aviv-100 index lost 0.4% to 376.6 points. Tech stocks reversed slight morning gains to finish down 0.7%.
Total equity turnover was thin at NIS 189 million.
Koor took a punishing after revealing an accounting adjustment for NIS 383 million in the first quarter relating to a former subsidiary, Tadiran Communications.
Koor, which will report first-quarter results on Tuesday, will be moving the the sum to the "shareholders equity surplus section" on its balance sheet. Unimpressed investors sent the share down 2.7%, even though the company protested that the amendment is purely technical and of no significance to its soundness, or to investors.
The big banks sagged, with Hapoalim down 1.6% and Leumi also retreating by 1.6%, after sustaining milder losses throughout the session. Both have reached a three-year nadir in their share prices.
Drug giant Teva Pharmaceuticals (Nasdaq:TEVA) climbed by 1.8% on enormous turnover of NIS 79.3 million, almost half the total turnover, after starting the day with a positive arbitrage spread of 2.8%. Good news about the drug giant keeps coming in, the latest item being that a U.S. federal court invalidated GlaxoSmithKline's (London:GSK) patents for the top-selling antibiotic Augmentin, freeing Teva ¿ among others ¿ to sell generic versions of the antibiotic.
The drug - a combination of two medicines, a penicillin called amoxicillin and a chemical called clavulanic acid that prevents bacteria from becoming resistant to the penicillin - has global annual sales of $2 billion, including $1.3 billion in the United States.
Generic drugmakers Geneva Pharmaceuticals, an affiliate of Novartis (NYSE:NVS), Teva Pharmaceutical Industries.(Nasdaq:TEVA) and Ranbaxy Laboratories (Bombay:RANB) had sued to invalidate Glaxo's patents so they could launch lower-cost versions of the antibiotic.
Teva expects to receive the FDA's blessing to market the drug shortly.
IDB group stocks were also weak but reversed morning losses to finish in the green, albeit barely, after the signing of an agreement to transfer control over the company.
Ganden Holdings, controlled by businessman Nochi Dankner, is leading the consortium that should assume the reins at rudderless IDB within a few months. IDB Holding Corporation ¿ the company in question ¿ gained 0.2%, IDB Development Corporation rose 0.1%, Discount Investment Corporation flipped to a 1.3% gain but Clal Industries meandered southward by 1.7%.
Chemical companies were also in the red, with Makhteshim Agan losing 2.2% and Israel Chemicals down 1.8%. Dor Chemicals, on the other hand, gained 4% on record first-quarter sales and profits it reported this morning.
The Migdal insurance company ended down 0.6% after the company on Thursday reported a 57% slide in quarterly profits.