Trade in Tel Aviv was characterized by gains throughout the day, however, the gains were moderated during the day and in the afternoon leading indices showed 0.1% falls. These small drops were erased late in the day with indices closing on minor gains.

Turnover was low and it appears warnings of terror attacks during Memorial and Independence Day festivities and the fact that there will be no trading on the two holidays, preventing any response to security events, kept investors wary of entry into shares.

The Maof index closed up 0.21% to 389 points and the TA-100 is up 0.02% to 375 points. Tech shares shed 0.34%. Turnover was a slight NIS 177 million.

Bank Hapoalim lost 0.9% on the floor¿s second largest volume of NIS 34 million after trading down 2% during the day. It was reported today that as opposed to the bank's own reports, it has fallen below the 9% minimum capital ratio. According to a news item in Ha'aretz this morning, the ratio of shareholders equity to risk is now 8.96%.

The difference stems from the bank¿s inclusion of deferred capital notes it issued in December 2001 in its capital ratio calculation. During the day, the bank and the Supervisor of Banks published denials there was a previous agreement that capital from the notes would not be included.

Magal Security Systems (Nasdaq:MAGS) rode yesterday's upward momentum and added a 1.3% gain at the close of trade. The share leapt on Nasdaq on Friday on estimates the company would be chosen to construct the proposed security fence between Israel and the Palestinians, similar to the fence the company built on Israel's northern border.

Bank Leumi traded flat on turnover of NIS 10.5 million. The market estimated that the process of selling Bank Leumi shares on the exchange will take longer than planned. The public offering was originally scheduled for May, the last date shares can be issued based on 2001 financial reports, but apparently will be later.

IDB group shares traded mixed on news Kardan is renewing talks to bring a new partner into the IDB deal instead of the Australian Lowy family. Apparently, the deal will be closed at a lower valuation than the original agreement, which valued IDB at $1.3 billion. IDB Holdings closed up 0.4%, IDB Development ended the day down 1% and Discount Investments gained 0.2%.

Africa Israel gained 0.5%. It was reported today the company is negotiating to buy a Holiday Inn in Amsterdam for $60 million. The acquisition could be made through subsidiary Africa Hotels, which holds the franchise to operate Holiday Inns in Israel.

Teva lost 0.1% on the floor's highest turnover of NIS 35 million. Osem shed 1.2% after a ¿hold¿ rating from Gmul Sahar. The investment bank noted it feels Osem is trading at full price which accurately reflects the company¿s future growth prospects.

Tedea Technological Developments continued to gain momentum and rose 3.9% on unusually high NIS 2 million turnover after gaining a whopping 78% yesterday. The company announced the sale of a wholly-owned subsidiary to U.S. company Vishay Transducers for $27 million. After the transaction, the company plans to distribute a NIS 170 million dividend or NIS 14 per share.