Tel Aviv stocks are trading with gains at mid-day but have lost steep morning rises. Traders attribute the happy mood in Tel Aviv to Nasdaq's 14% pole-vault 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% opening 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 by 5.1% on a NIS 12 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 would not affect Teva. It appears that its calm down message had the right effect.
The rest of the arbitrage shares are also performing well. Formula (Nasdaq:FORTY) is up 9.2%. Retalix (Nasdaq: RTLX) up 2.2% and Elron (Nasdaq:ELRNF) notches up by 3.3%.
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.7% on volume of NIS 3.8 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.
Shares of Elbit Systems (Nasdaq:ESLTF) are rising by 4.7%. The company said this morning that it received a $200 million order from the government of Brazil for a 6 year project to upgrade Brazilian air force F-5 fighters. Another share which is doing well today is E&M Computing, up 5.5%. Yesterday E&M dropped 9.4% after Sun Microsystems appointed Sintec as its Israeli business partner, thus changing its policy of using E&M and Team Computers & Systems. Team shed 3.3% yesterday and is up 7.6% today, was Sun's sole distributor for the financial sector; E&M which has come down 60% from its 52 week high, based most of its sales on Sun's systems for the high tech and communication sectors.
Shares of Pilat are up a whopping 14%. The company announced it would be spinning off its Media division and floating it on the London and Tel Aviv exchanges.