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Tel Aviv indexes closed up 1% after violent swings dictated by the mood of the news emanating from the

Sharm el-Sheikh emergency summit


Investors spent the day reacting sharply to developing events at the meeting between Middle East leaders,

President Clinton

and leading diplomats from the

United Nations

and the

European Union

, and also to news of sporadic fighting between Israelis and Palestinians. Ultimately Israeli stocks ended with gains, boosted by word of a compromise and a joint statement condemning violence and the need to build mechanisms to assure that the turmoil would not resume.


Tel Aviv Stock Exchange

session opened with sharp losses, based on assessments that the summit between Israel and the Palestinians, hosted by Egypt, would achieve nothing more than explosions of flaring tempers. Initial assessments had the summit ending at 10 a.m. local time, probably in a flurry of mutual recrimination. Before noon Tel Aviv's leading indices had dived 4%.

But when Clinton announced that the summit had been a success and outlined its conclusions, investor ears pricked up and Israeli stocks picked up, shooting up 6% from a loss of 3.5% to a gain of 2.5% within moments. The steep gain gradually decreased to about 1% shortly before closing.

The session could certainly be characterized a nervous one, on high turnover, as the mood swung with the news from Egypt.



index ended with a gain of 0.9%, or 498.4 points, and the


index rose 0.7% to 493.5 points. The


index of technology stocks edged up by 0.4%. Total turnover was high, valued at 529 million shekels, or $128 million.

Bank stocks were weak almost throughout the session, but managed to rally before closing.

Bank Hapoalim

inched up a meager 0.1% on the session's biggest turnover of 69 million shekels ($16.7 million) after spending the session firmly entrenched in the red.

Bank Leumi

added 1.9% on 55.5 million shekel ($13.4 million) turnover.

Bank Mizrahi

edged up 0.3% on 5.7 million shekels ($1.38 million).

Teva Pharmaceuticals


closed up 3% on 51 million shekels ($12.3 million) changing hands. Monday Teva won a buy recommendation from the

First International Bank of Israel

, which set a price target 25% above the market. Teva opened the day with losses together with its brother blue-chips, but leapt on the good word from Sharm and Clinton. Today

Merrill Lynch

concurred, calling it a buy opportunity and setting a target of $80.

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