TASE unmoved by Powell-Arafat meeting, shed 1%
Tel Aviv stocks recouped some of their afternoon 1.9% losses to close Sunday down just 1%. The negative mood was attributed to a series of negative factors including Friday's suicide bombing in Jerusalem, in which six people were killed and 86 injured.
Credit ratings agency Standard & Poor's said on Thursday it cut its outlook for Israel to negative from stable as Israeli-Palestinian fighting and an ongoing recession keep the pressure on the nation's economy.
S&P said the reduction to negative, which raises the likelihood of a credit rating downgrade, came in spite of an improved outlook for the global economy.
Investors are waiting for the holiday to pass, and for peace to come, one market player said. The stock exchange will be closed on Tuesday, Memorial Day, and Wednesday, Independence Day, and the shorter week isn't helping either. The player added that investors are waiting to see the results of today's meeting between U.S. Secretary of State Colin Powell with Palestinian leader Yasser Arafat.
The Maof-25 blue chip index closed down 1.11% to 388.35 points, and the TA-100 index ended off 0.90% to 375.68 points. Technology shares were down 0.79%. Total turnover was a low NIS 152 million.
Despite the difficult security and economic situation, Union Bank's weekly review recommends investors begin a slow, selective increase in the share component of their portfolios. The bank suggests bank, insurance, Israel Chemicals and Elibit Systems shares.
Magal Security Systems (Nasdaq:MAGS) leapt 21.1%, closing in on its huge positive spread, 21.6%. The Nasdaq leap was generated by estimates that a security fence could be built between Israel and Palestinian territory after Powell's visit.
Tedea Technological Development & Automation soared 77% on irregular volume, NIS 7.5 million. Tedea, whose market cap is $10 million, announced that it has signed an agreement to sell its Dutch subsidiary Tedea Huntleigh to American firm Vishay Transducers for $27 million. Tedea said that after the completion of the deal it will distribute NIS 170 million dividends, NIS 14 per share, which comes to 170% gross yield per share.
Drug-giant Teva Pharmaceuticals (Nasdaq:TEVA) closed up 1.4% on the session's biggest turnover, NIS 29 million. On Thursday, Teva closed up 2% on NIS 27.6 million turnover. Teva received U.S. Food and Drug Administration approval for Fenofibrate capsules, 134 mg and 200 mg, and gave tentative approval for the 67 mg. Teva has been granted 180-day marketing exclusivity. The drug is the generic equivalent of Tricor capsules made by Abbott (NYSE:ABT), used for treating patients with very high triglyceride, blood fatty acids.
CFO Dan Suesskind two weeks ago estimated sales of the original drug in 2001 at $235 million.
The dual-listed shares traded down slightly as group with Koor (NYSE:KOR) dropping 2.4% and 1.6%. Retalix dropped 2% and Alvarion slid 3.1%.
Cellular provider Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD) ended the day down 1.8% on NIS 2 million volume. Partner closed with sharp gains of 4.9% on Thursday. The gains relate to Matav Cable Systems (Nasdaq:MATV) saying it will sell 7.6% of Partner for $60 to $70 million. The sale also resolves the Dankner family's cross ownership in Partner and Bank Hapoalim, Partner's biggest creditor, and saves Partner early repayment of $96 million debt to Bank Hapoalim.
Elbit Systems lost 1.5% on the floor¿s second highest volume, NIS 12.5 million. The share received a buy rating and a $20.8 target price from Bank Hapoalim.
First International Bank of Israel closed off 1.9%. Investment bank Gmul Sahar reiterated its Hold rating, setting NIS 23.2 as price target, 3% above the market.
