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

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.