Terror attack, 2001 budget deficit sent TASE down Wednesday - TheStreet

Terror attack, 2001 budget deficit sent TASE down Wednesday

Teva dropped 2% after rival drug-maker Andrax estimated Q4 profit will be markedly lower than Q3
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An early morning terror attack on an Israeli army outpost in Gaza sent Tel Aviv stocks into the red on Wednesday.

Four Israeli soldiers were killed in the attack, as well as the two Palestinian terrorists.

The negative mood was also related to reports that the deficit in 2001 came to 4.6% of gross domestic product, a marked deviation from the 1.7% deficit target.

The Maof-25 index of blue chips closed off 0.6% to 471.9 points and the TA-100 index closed down 1.3% to 454.8 points. The TA-75 index dropped 2.7%, and technology shares closed off 1.8%. Total turnover was moderate at NIS 384 million.

Teva Pharmaceuticals (Nasdaq:TEVA) closed off 2.2% on the session's largest turnover, NIS 92 million. Teva opened with a negative arbitrage gap of 0.9%. Investment house Investec estimated that the shares dropped after Teva rival Andrax (Nasdaq:ADRX) announced it expects Q4 profits to be much lower than Q3.

Tower Semiconductor (Nasdaq:TSEM) climbed 5.5%. The company has announced that it has received $2 million from a new investor. The money is designated for its Fab 2. In return, the investor is to be allocated about 333,000 shares at $6 per share, 25% below the market.

In addition, Tower announced an agreement with IMEC for the transfer of technology and licensing of analog modules and technologies for its Fab 2. Tower said that the agreement will expedite the development of analog and mixed-signal technologies. IMEC is a major European research center for the development and licensing of microelectronics, and information and communications technologies.

Baran engineering group gained 1.5% on high turnover of NIS 3 million. Baran announced the settlement of the legal dispute between its subsidiary Raviv Telecom and Mer Satellite Installations. The latter¿s parent company, Mer Industries closed down 4.4% on NIS 1 million turnover.

The participation units of oil exploration partnership Isramco closed up 3.9% on NIS 2 million volume of trade. The units dropped an aggregate 15% in recent days after announcing the stoppage of one drilling site.

Koor Industries (NYSE:KOR) dropped 1.8% following losses posted by ECI Telecom (Nasdaq:ECIL) on Tuesday. Its agrochemicals subsidiary Makhteshim Again closed off 1.2%.

Scitex (Nasdaq:SCIX) dropped 3.3%, and Elron Electronic Industries (Nasdaq:ELRN) closed off 1.9%. Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD) dropped 1.8%.

Bank Hapoalim and Bank Leumi each closed off 0.7%.

IDB Holding Corporation closed off 0.4%, IDB Development Corporation gained 1.5%, Discount Investments rose by 2.2%. Clal Industries closed down 1.9%

Phone company Bezeq dropped 1.3% on NIS 20 million turnover.

Walla dropped 5.2% on NIS 1 million volume of trade, after plunging 12% earlier in the session. Walla has gained an aggregate 75% as of the beginning of January.