Three separate terrorist bombings sent Tel Aviv stocks 1% into the red on Sunday. Local investors are too busy fretting that the escalation will deter foreign investors to trade, as attested by the pitiful total turnover of NIS 110 million. At around 08:00 Palestinian terrorists opened fire on a minibus driving teachers through the Jordan Valley, killing two and wounding four. A blast at 10:45 in the northern town of Nahariya killed three and wounded 63, according to latest reports. At 13:00 a car bomb exploded at the Beit Lid junction near Netanya, wounding 11.
The session opened with mild losses of 0.5%, which were attributed to the Nasdaq's 1% loss on Friday. The New York tech index lost an aggregate 6.5% last week, dropping below the 1,700-point mark.
The Nahariya bombing sent blue chips down 1.6%, to fall 1.7% following reports on the car bomb at Beit Lid.
Investors pointed out that trade on Sunday is more vulnerable to horrible domestic news, because there offsetting influence of trade in New York or Europe. If foreign investors really are repelled even more than before, Tel Aviv market players fear the Maof-25 index will drop below the 400-point to 405-point technical support level.
It isn't far off. The Maof-index of blue chips fell 1.2% to 410 points, and the TA-100 index dropped 1% to 398 points. Technology shares fell 1.6%.
Phone company Bezeq closed down 2% on NIS 10.3 million volume of trade after Ma'ariv wrote today that investment house Merrill Lynch still cannot find anybody to buy the company.
Teva Pharmaceuticals (Nasdaq:TEVA) slipped 0.3% on the session?s biggest turnover of NIS 12 million turnover. The company today announced that CFO Dan Suesskind will be replaced as member of the board but will continue as CFO.
Elbit (Nasdaq:ELBT) slipped 1% and Elron Electronic Industries (Nasdaq:ELRN) closed off 1%. The stocks of the two companies are expected in the coming weeks to factor the stock ratio set for the purpose of their merger. Each holder of 1 Elbit share will be getting 0.45% Elron share. At opening today, the Elron-Elbit stock ratio stood at 1:0.44.
Formula Systems (Nasdaq:FORTY) lost 1.7% on NIS 4.8 million volume of trade. Formula has seen 16% of its value chopped after announcing a change in control.
Retalix (Nasdaq:RTLX) closed down 1.3% after the company completed its acquisition of the American company BASS for $5 million in stock and cash.
Bank Hapoalim lost 1.4%, Bank Leumi closed off 0.8%, and Discount Bank closed off 0.6%.IDB Development Corporation lost 2.4%, IDB Holding Corporation dropped 2.5%, Discount Investments closed off 1.8%, and Clal Industries closed down 1%.