Ofek: Migdal insurance company has lost about NIS 100m on its Leumi investment

Investment house rates Migdal Market Perform, set target of NIS 5
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Ofek Securities and Investments estimates that the Migdal Insurance agency has lost about NIS 100 million on its investment in Bank Leumi shares.

In a research note, Ofek ¿ a member of the Bank Leumi group ¿ writes that by the end of the third quarter, Migdal had invested about NIS 948 million in Leumi stock, bringing its holding to 8%. About 1.5% more of Leumi's equity was held by profit-sharing policies.

Migdal and rival insurer Shlomo Eliahu each hold about 9.6% of Leumi's equity, with Eliahu holding slightly more.

Both are widely considered to be positioning themselves to contend to buy the bank when privatized.

The state holds 41.7% of Leumi's share capital.

In its research note Ofek rated Migdal at a Market Perform and set a price target of NIS 5, only 4% above the share's trading price.