5 things you should know before opening trading on the Tel Aviv Stock Exchange

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Trading Review: Ongoing Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations

07:50

1. Expect a negative opening

The trading day in Tel Aviv will probably open with slight price declines, due to the negative trend in Wall Street futures.

The trading day also ended on the negative side yesterday: the Tel Aviv 35 Index decreased 0.8%, the Tel Aviv 90 Index lost 0.6% and the Tel Aviv 125 Index weakened by 0.7%. Among the industry indices, the Biomed Index recorded the sharpest decline and lost 1.4% , Partly due to stock Ormed Which continued to dive and lost 20%.

2. The reporting season continues

IAI has already published its morning reports and reported revenues of NIS 1.04 billion in the third quarter (an increase of 3.5%) and with a net profit of NIS 31 million (compared to NIS 30 million last year). The company is not listed on the stock exchange.

The results of the day will be published, among other things EL AL , Housing and Construction , Azrieli , Mitronics , a building , פז andShafir Engineering .

The duality will weigh on Tel Aviv 35

Trading on the New York Stock Exchange closed last night in a mixed trend after a volatile day. The Dow Jones Industrial Average was up 0.5%, the Nasdaq was down 0.5%, and the S&P 500 was up 0.2%.

The 10-year US government bond yield rose to 1.68%, a six-month high.

Most of the major stocks are back with negative arbitrage gaps and are expected to lose height on the local stock market as well. nature With a negative gap of 1.8%, Nice With 1.6% andICL With 1.1%. On the other hand, Ofco Health Is expected to strengthen by 2%.

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4. Mixed trend in Asia, declines in contracts

Asian market trading is on a mixed trend this morning, with the Nikkei down 1.6%, led by Softbank, Rakuten and Z Holdings, and the Shenzhen index down 0.2%. Shanghai, on the other hand, is up 0.3% and Hang Seng is up 0.4%.

Macro data in the US will be released today, including growth data, number of unemployment claims, new home sales and crude oil inventory. Some of the data is usually released on Thursdays, but tomorrow Wall Street is on Thanksgiving. In the evening, the minutes of the meeting of the US Open Market Committee will be published.

5. Credit Suisse Bank: “The dollar dropped to NIS 3”

Credit Suisse’s annual forecast for the Israeli economy refers, among other things, to the Bank of Israel’s monetary policy, and the bank’s economists state that “the approach to keeping interest rates low in order to stimulate the economy is expected to moderate, but interest rate hikes are not imminent.” According to them, the Bank of Israel is expected to remain neutral in the coming months, with the inflation rate likely to rise and reach the upper limit of the target range set by the central bank of 1.0% -3.0%. Still, the structural pressure on the shekel suggests that the bank is expected to maintain interest rates at least 0.1% throughout the first half of the year, and may consider raising interest rates only if inflation surprises. The Bank of Israel forecasts that inflation will moderate from 2.5% in the last quarter of 2021 to 1.6% in the last quarter of 2022.

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“In the area of ​​the exchange rate, it seems that the shekel will remain subject to continuous structural appreciation pressures also in 2022, as a result of a significant surplus in the current account and a constant sale of dollars by local institutional investors while hedging their foreign investments. We expect the current account surplus Of 5.7% in the second quarter of 2021 on a rolling basis), the balance of payments situation is expected to continue to support the shekel in the near future. “

If these trends continue, Credit Suisse says, the Bank of Israel is expected to continue to allow for further gradual and moderate declines in the dollar and euro exchange rate in 2022, as long as inflation remains relatively high. “The exchange rate of the dollar against the shekel may fall to NIS 3 to NIS 3.05 in the first half of next year,” they concluded.

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