Mutual funds lost NIS 7.8 billion worth of assets in June, according to figures from the Tel Aviv Stock Exchange.

As the financial markets reeled in crisis and faith plunged in Israel's economic institutions, the public withdraw a billion shekels from stock-based mutuals, compared with accrual of NIS 400 million in May.

Mutuals that invest in shekel vehicles saw massive June redemptions of NIS 3.9 billion, following redemptions of NIS 2 billion in May.

Mutuals specializing in bonds also suffered, as the public took out NIS 2.9 billion, in June, following withdrawals of NIS 700 million in May.

The TASE figures also show that the average daily turnover in stocks was NIS 200 million in June, the lowest figure since March 1999. Trade in bonds surged, though, to NIS 850 million a day on average, almost 40% higher than in May.

Most of the trade was in government bonds linked to the consumer price index.

Stocks fell by an average of 4% in June. Stocks listed on the TelTech-15 index, which is heavily influenced by Nasdaq, dropped 10.3%.

Trade in derivatives on the Maof-25 index was steady, with average daily turnover of 98,000 units. Trade in shekel-dollar options increased slightly to 61,000 units a day on average, compared with 57,000 units a day in May.

During the month two stock market veterans raised money: Ormat issued NIS 200 million worth of convertible notes, and Excellence raised NIS 13 million through a rights issue. There were also five private placements in which companies raised a total of NIS 87 million.