Tel Aviv stock are opening with steep gains after Nasdaq 14% leap on Wednesday. The apparent positive turn of the negotiation process between Palestinians and Israelis also contributed to the optimistic opening.
The Maof-25 index is rising by 2.4% to 490.8 points after opening with a 3.8% leap. The TA-100 index is rising by 2.8%, slightly down from its 3.7% openin jump, and the Tel-Tech index is sustaining a 3.8% gain. The total volume of trade is high at NIS 75 million.
Shares of Teva Pharmaceuticals (Nasdaq:TEVA) are leaping at the open by 6% on a NIS 4.5 million volume, bridging a positive arbitrage gap of 7.2% opened yesterday on Nasdaq.
Teva stock fell by 7% in Tel Aviv yesterday after Canadian pharmaceutical company Biovail Corporation (NYSE, Toronto:BVF), with which Teva has a distribution and profit sharing agreement on sales of generic drugs in the United States, warned Tuesday that generic drug sales would slump in 2001. Management at Teva announced to investors yesterday that a worsening of Biovail business results will not harm Teva. It appears that its calm down message had the right effect.
The positive trend on the TASE is lifting the ailing shares of Clal Israel (TASE:CLAL), which have lost 11% as of this week Clal Israel is up today by 2.9% on volume of NIS 1 million. This morning
reported that the company will complete the fourth quarter of 2000 with a loss, or minimal profit at best, because of the general weakening of Israel's hi-tech sector. In the fourth quarter of 1999 Clal Israel reported earnings of NIS 62.8 million in NIS 38.2 million in the third quarter of 2000.