A trading day characterized by mild, 0.5%, drops has climbed into the green in Tel Aviv. Blue chips started the Tuesday session with a mild drop of 0.7% on fairly high turnover, after the cabinet's emergency economic plan failed to pass a first reading in the Knesset last night.
Market players warn that if the cabinet fails to push its plan through Knesset on Wednesday, stocks are likely to react much more sharply, although this scenario appears unlikely at this time.
In a dramatic move Monday night, Sharon sacked four of five ministers belonging to the ultra-orthodox Shas party, as well as the party's three deputy ministers, after their votes contributed earlier in the evening to the narrow defeat of the government's emergency economic plan in the Knesset. Today the prime minister reiterated his intention to keep the disloyal ministers out of government.
The Maof-25 blue chip index is now up 0.1% to 387.1 points, and the TA-100 is also up 0.1% to 376.6 points. Technology shares are slipping 0.1%. Trading volume is at NIS 153 million.
Teva Pharmaceuticals (Nasdaq:TEVA) is trading with a 2.6% rise and NIS 68 million in turnover after UBS Warburg yesterday upgraded the generic drugs giant from Hold to Strong Buy. The investment bank also raised its price target for Teva from $60 to $81.
Teva also advised the stock exchange yesterday that it has received Canadian authorities approval to market Copaxone, its treatment for remitting relapsing multiple sclerosis, in pre-filled syringes.
Baran is losing 1.7% on the company's financials, as well as announcements regarding its activity in the U.S. The company advised the stock exchange of difficulties in negotiations to acquire Nasadq-traded O2Wireless, which has reported negotiations with other potential buyers. In addition, Baran cancelled plans to buy an American construction company for $5.1 million. Baran ended the quarter with NIS 10.2 million profits, in keeping with projections.
The IDB group is trading mixed, as investors wait for Nochi Dankner to sign a buyout deal for the concern. If the deal closes, the cloud of uncertainty plaguing the company since the sale process began is expected to disappear.
Discount Investments is gaining 0.5%, and IDB Development is up 1.9%. Clal Industries is down 0.6%.
Bank Leumi is trading down 0.1% with lively action on growing assessments that the government will not be selling a chunk of its 42% stake on the market this month. The share is expected to suffer pressure in the near future as the planned sale would bear down on its price, but postponement of the sale will delay the development ¿ and cause sharp price drops.
Bank Hapoalim is also trading down 0.4%. First International Bank is down another 1.4% on publication of its Q1 financials, including the first loss in the bank¿s history.
Lipman continues to rise as has been its wont since publication of its financials last week, now up another 3.6%. The company's CEO noted that plans to update growth projections after Q1 results were surprisingly good.