Tel Aviv stocks closed unchanged Sunday on moderate turnover, NIS 219 million.

Over the last two Wall Street trading days, the Nasdaq dropped 4%, and the Dow Jones lost an aggregate 1.1%.

The Maof-25 blue chip index and the TA-100 index each closed up 0.1%, and technology shares dropped 0.7%.

The session opened with 1.5% gains, investors ignoring drops on Wall Street over the last two days, and drawing encouragement from the weakening of the dollar on Friday, and Prime Minister Ariel Sharon's visit to the United States.

Investment bank Tamir Fishman said that the dollar weakening and Sharon's trip aren't enough to sustain gains over time given the drops on Wall Street and doubt about Sharon's ability ¿ or will ¿ to attain substantial progress in the political process.

The bank said that in order to substantially change gear in the market, other than a one-day to two-day technical correction, the market has to demonstrate strength in big volumes of trade and in injection of new money.

The bank said that trade on financial markets is affected by the shekel gaining on the U.S. currency and by the fact that the treasury's issue in May is expected to be negative. The bank said this decreases pressure on shekel instruments and contributes to decreased yields in treasury bills and Shahar unindexed fixed-interest bonds. The bank said there is great economic uncertainty, and the trends are brittle, making a near-term trend turnaround in bonds and stocks unlikely.

UBS Warburg has updated its forecasts, expecting gross domestic product growth will this year be a negative 0.5%, and government budget deficit will come to 5.4% of GDP, much more than the 3% target deficit. Inflation is expected to come to 5.4%, and the dollar is expected to climb to NIS 5.

Drug giant Teva Pharmaceuticals (Nasdaq:TEVA) closed up 2.9% on 3.8% positive arbitrage gap, attracting the session's biggest turnover, NIS 41 million.

IDB Holding Corporation dropped 0.5%, and IDB Development Corporation closed off 0.2%. Discount Investments closed off 0.1%. Clal Industries climbed 1.9%. Ma'ariv reported that other entities wanted to join the bid for control in the group, together with businessmen Nochi Dankner and Yitzhak Manor. The paper said that the Livnat family, owners of haulage group Taavura, is the leading candidate for joining the bid. The Livnats would pay $110 million for 20% of the controlling stake, the paper said.

Phone company Bezeq closed up 0.2% on NIS 10 million. Bezeq closed with 3.9% gains Thursday, after the banks petitioned the court to appoint a receiver for businessman Gad Zeevi. Leader DS analyst Yuval Ben Zeev on Thursday said the banks' intentions had long been clear so he was surpised by the sharp gain in the share. Ben Zeev says a possible explanation is that as long as Zeevi held the shares there was concern the banks would force him to sell them to reduce his debt. Now the shares will be transferred to the banks and it is likely they will wait for an attractive price before selling the bloc. Drug maker Agis Industries closed off 0.3% after on Thursday finishing up 3.4%. The company announced last week that its subsidiary Clay Park has received approval for marketing a generic drug whose annual market comes to $40 million. This is the only approval for this generic drug. Agis received two similar approvals over the last six months.

Super Email closed unchanged. The company said that owners Ofer Hirchson and Zvi Barak, who acquired the control in the company two months ago, are in talks to sell the company to businessman Zvi Barinboim for NIS 46 million, based on NIS 74 million value, 160% higher than the market. The public will probably not get much from the deal.

Technology holding firm Elron Electronic Industries (Nasdaq:ELRN) climbed 1.1%, Formula Systems (Nasdaq:FORTY) closed up 1.1%. Tower Semiconductor (Nasdaq:TSEM) closed off 2.4%, and maker of software solutions for the retail food market Retalix (Nasdaq:RTLX) closed down 1.3%.

Cellular provider Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD) closed off 1.5%.