Stocks trading in Tel Aviv spent a second consecutive day correcting upwards despite sporadic reports of escalating violence between Israelis and Palestinians.

Investors were cheered by the backwind from

Nasdaq

, which jumped 5.6% on Tuesday, providing a breath of fresh air from the distraction of unfolding local events.

Prices picked up steadily until early afternoon, at which point the

Maof-25

index of blue-chips was up 3%. But the chance to focus on finance alone soon ended, when news arrived of fighting at the Arab village of al-Khader.

Israeli army sources said that Palestinians employed machine guns and grenades against Israeli tanks and armored vehicles. This is the first time that Palestinian forces have used antitank weapons. Fierce firefights also were reported in late afternoon at the Jerusalem neighborhood of Gilo.

In any case, the Maof-25 index of blue-chips ended 1.66% up at 472.3 points and the

TA-100

index rose 1.79% to 468.8 points. The

Tel-Tech

index gained a sharper 2.03%. The total volume of trade was relatively high for recent days at 428 million shekels.

Nice Systems

(NICE) - Get Report

sank 11.4% on high turnover, after beginning the session on a big negative arbitrage gap of 12.6%. This morning Nice released its results for the third quarter at 58 cents a share, beating forecasts by 1 cent.

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