TASE Continues to Trade through Operation Pillar of Defense

The Tel Aviv Stock Exchange (TASE) has been continuing to trade since Israel’s Operation Pillar of Defense began November 14, 2012. While trading has been lower the past week, share prices are generally up. Key indices on the TASE are all moving upwards.

The TA-25 is the TASE’s flagship index, tracking the share prices of the 25 companies that trade on the TASE that have the highest market capitalization on the TASE. It was in the 1190 range on November 14 and dropped into the 1180 range on November 15, 2012. However, it’s now jumped above its pre-Operation Pillar of Defense numbers. In trading on November 19, 2012, the TA-25 was well above 1200 and inching towards 1210. The TA-25 has already been showing a 10 percent year to date yield.

The TA-75 and TA-100 also experienced drops in the index rates on the trading day immediately after the start of Operation Pillar of Defense but have also been climbing back up since then. The TA-75 hasn’t yet recovered all it lost the day after Israel began its military action, but it’s been moving up steadily from that initial drop. The TA-100 has already surpassed its November 14 marker.

However, in all the indices, as with the TASE generally since the start of Operation Pillar of Defense, trading is only at roughly half its normal volume. Turnover was just NIS 424.6 million on November 18, 2012. Not as low as turnover seen during the Intifada, but lower than normal. Trading volume had already been on a slow decline for the year due to expectations of an attack on Iran.

The rise in share prices is attributed to an expected drop in the consumer price index for October. In addition, foreign investors have not been scared away by the military action. Some analysts believe their willingness to stay in the TASE may change if Israel launches a major ground offensive into Gaza.

Among the leaders in the rising share prices were many companies in Israel’s technology and energy sectors.

Filed Under: BusinessJewish business News


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Menachem Greenfield About the Author: Menachem was previously a feature article writer for the Milwaukee Journal. He currently runs a small publishing business in Michigan focusing on books and magazines for the tourist industry. He is looking forward to writing for Jewocity and connecting with its readers. More about Menachem

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