Tel Aviv indices dropped at closing Wednesday, having risen throughout the session in response to the interest rate cut announced by Bank of Israel Governor David Klein.

Shekel investments, long-term bonds in particular, also rose 0.3% following the news.

The Maof-25 dropped 0.4%, the TA-100 lost 0.36% and the Tel-Tech shed 0.6%. Total turnover was a slim NIS 171 million.

Teva Pharmaceuticals (Nasdaq:TEVA) lost 1% on NIS 26 million total turnover. In the last few days the share has rallied on news of approval of Lovastatin, expected to yield $2 million in revenues in Q4 this year and $18 million in 2002.

Bank shares, having suffered declines in the last few months, recovered in the morning, but reversed back down at the session¿s end. Bank Hapoalim lost 0.12% after Menorah Gaon investments rated it a Buy and set its price target at NIS 11.38, 38% higher than its market price.

Bank Leumi dipped 0.78%, and Israel Discount Bank lost 0.73%. Mizrahi lost 1%, after an earlier climb of 1.5%.

IDB group shares also ended in the red, having earlier headed north. IDB Holdings lost 0.1%, and Discount Investment Corporation dipped 1.5%. IDB Development defied the trend and climbed 1.4%.

Green Venture Capital closed down 3.5% on NIS 2.6 million total turnover after its rights issue results published last night showed the company raised NIS 40.6 million, way below the planned NIS 58 million it was hoping for.

Bezeq lost 0.2% on total turnover of NIS 11 million. Trading at NIS 5.6, the share posted negative return of 21% this year. TheMarker today reported attempts by Yitzhak Kaul and Danny Rosen to form an investor group to acquire control in the company.

Magic Software (Nasdaq:MGIC) and Formula Systems (Nasdaq:FORTY) both closed up 0.66%.

Magal Security Systems (Nasdaq:MAGS) lost 5.2% in spite of changes to the TA-100 and Tel-Tech indices reported yesterday, indicating Magal would be included in both following its improved performance since the terror events of September 11.