Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
17:29
Trading in Tel Aviv was closed with price drops. The Tel Aviv 35 index shed 0.7%, the Tel Aviv 125 and Tel Aviv 90 fell by 0.8%. Among the industry indexes, the banking index lost 0.8%, the real estate index fell by about 0.7% and the cleantech index fell by more than 2%. Trading turnover amounted to about NIS 3 billion.
At the bottom of the Tel Aviv Index 35 Ormat andnice which are losing ground at this time also on Wall Street, after they published reports earlier. At the top of the index Shafir Engineering andEnergian .
The entire week also ends on the stock exchange with declines: TA 35 lost 3%, TA 125 fell by 3.9% and TA 90 fell by 6%. As for the industry indexes, the construction index leads the declines when it lost 10% this week, an index Real estate erased 8% of its value and the banking index separated from 2.3%.
In the bond market, the corporate Tel Bond indices ended the day with slight gains, but for the entire week they fell by 0.5%-0.7%. The Tel Gov Shekel index rose by about 0.1%, but fell by 0.9% in the week’s summary. The trend among the government shekels ranges Long-term was mixed, ranging between decreases of 0.6% and increases of 0.5% (and on a weekly basis fell by 1.5% to 3.9%). The 10-year bond yield stands at 3.81%.
Particularly sharp declines were recorded this week Hanan Mor (23.7%-), Uridis (18%-), as well as Akro, Properties and Building, Hajj, Kashret Hashav and Aura with a weekly decrease of about 15% each. At the top of the tables stood out lighthouse andElectron with weekly increases of 37% and 34% respectively.
15:50
Trading on the stock exchange is once again taking place in decline, with the Tel Aviv 90 index also returning to negative territory and shedding about 0.3% of its value. The banks index stands out with a decrease of 1.4%, and the cleantech and foreign yield indices also fall by more than 1% (while the Israel Maniv index actually climbs -0.6%).
The trading turnover so far amounts to NIS 2.2 billion, with the highest turnover concentrated by Nice, which drops by more than 8% after the reports (see previous updates).
In foreign exchange, the representative dollar rate fell by 1.3% to 3.61 shekels, but at this time the dollar is climbing slightly to 3.62 shekels. The exchange rates of the euro and the pound sterling fell by 1.5% and 1.6%, respectively, to 3.83 and 4.35 shekels respectively.
14:07
A mixed trend in the stock market. The Tel Aviv 35 index registered a decrease of about 0.6%, while the Tel Aviv 90 index went up slightly. The biomed index climbs by 1%. The trading turnover amounts to about NIS 1.65 billion.
The Ministry of Foreign Affairs announced today (Thursday) the approval received from Oman to allow Israeli airlines to fly over their territory. The Ministry of Foreign Affairs stressed that the approval was received after long work and contacts between the authorities in Israel and those in Oman. The approval received joins the one received from the West of Saudi Arabia in the past, and will enable a significant shortening of the duration of flights to the East. According to estimates, on some flights the new approval will allow up to two hours to be cut from the flight time. One of the beneficiaries of the approval will be a company Al Al which even reported the approval to the stock exchange.
13:20
Negative trend in the stock market. The Tel Aviv 35 index registered a decrease of approximately 0.4%, and the Tel Aviv 90 index retreated by approximately 0.2%. On the other hand, Biomed climbs by 1.1%. The trading turnover amounts to approximately NIS 1.65 billion.
company nice reported today that revenues in the fourth quarter of 2022 increased by 10% to $568.6 million, similar to analysts’ expectations, compared to $515.5 million in the corresponding quarter last year. The net profit (Non-GAAP) in the fourth quarter amounted to $135.3 million compared to $116.7 million last year, and the profit per share was $2.04, 11 cents above analysts’ expectations.
Nice’s management predicts that revenues in the first quarter of 2023 are expected to amount to $559 million to $569 million. In addition, Nice announced that the company plans to accelerate the $250 million share buyback plan that was announced in the previous quarter, and to fully implement it in 2023.
12:15
Mixed trend in the stock market now. The TA 35 index moved to a decrease of about 0.2%, and the TA 90 index maintains stability. The biomed index stands out with an increase of 1.2%. The trading turnover amounts to about NIS 1.4 billion.
Ronan Menachem, Chief Markets Economist at Mizrachi Tefahot, points out after the publication of the Fed’s minutes yesterday that “the record of the discussions that preceded the Fed’s latest interest rate announcement did not update much. The hawkish approach of the Fed members has been known for some time and the media speakers repeatedly emphasize that inflation is still high and its rate of decline Too slow. The very fact that a number of members believed that the interest rate should rise by 50 basis points only serves as a confirmation and strengthening of the widespread opinion among the Fed that there is still a long way to go before the goal is achieved.”
“Now it seems that 2-3 more interest rate increases of 25 basis points are certainly possible and it is quite possible that the next interest rate increase will again be 0.5%, as it was before the last, smaller increase of 25 basis points. Bottom line: actual inflation is still much higher than the target and this in all forms of measurement. Her descent is too slow; The following interest rate measures will take into account the monitoring of the progress that has already been made, since the interest rate mechanism has a delayed and even slow effect on the persistent, or “sticky”, components of inflation; In addition, a policy dependent on data will continue, so that the tension and vigilance before each announcement will be high and so will the volatility of the markets before and after each announcement,” writes Menachem.
Uridis jumps by 4%, car fuel at 3% andtower Notable in the increase of 2%.
11:00
Positive trend in the stock market: the Tel Aviv 35 index climbs by about 0.2%, and the Tel Aviv 90 index rises by about 0.6%. The Israeli yield index climbs by 1.5%, and the insurance index stands out with an increase of about 1.3%.
In the foreign exchange market, starting yesterday (Wednesday) in the morning we see a red trend in the exchange rate of the dollar. The dollar is now trading around NIS 3.61, a decrease of 1.4% compared to the representative rate and this after yesterday’s peak at 10:00 a.m., when it stood at rate of NIS 3.69 The euro weakened by about 1.5% and traded around NIS 3.833.
In the bond market, increases of up to 0.6% are recorded in long-term government shekels. Index indices are trading in a mixed trend. In the corporate market, the central Tel Bond indices are registering increases of 0.1%-0.2%.
10:01
The trading day on the stock market opened with slight gains. The Tel Aviv 35 index climbs by about 0.4% and the Tel Aviv 90 index rises by about 0.3%.
Significant increases are recorded Demary , Summit Liveperson, Israel Canada , partner and the phoenix
on the descending side are prominent Ormat , Nikes Paz, Holdings Diplomat and Doral.
The Bank of Israel approved theClal Insurance Buy control of the Max credit card company. The Governor of the Bank of Israel, Prof. Amir Yaron, and the Supervisor of Banks, Yair Avidan, informed the general public that the Supervision of Banks has completed the process of examining its request to obtain a permit to control the company Max.
08:45
Ormat This morning reported an adjusted net profit of about 41 million dollars in the last quarter of 2022 compared to an adjusted profit of 22.8 million dollars in the corresponding quarter in 2021. The company’s revenues grew in the quarter by 7.6% to a level of approximately 205 million dollars. The company publishes an adjusted EBITDA forecast for 2023 of 480-510 million dollars, an increase of up to 17% compared to 2022.
In the foreign exchange market, the shekel strengthens against the dollar and the euro. The dollar weakens by about 0.9% against the representative rate and trades around NIS 3.63 and the euro falls by about 1% and trades around NIS 3.858.
07:42
5 things you should know before trading on the Tel Aviv Stock Exchange
1. The stock markets
The trading day on the stock exchange is expected, apparently, to open with a mixed trend with a tendency for increases. This is after yesterday the trading day on the stock exchange closed with losses. The TA 35 index ended a volatile day with a decrease of 0.2%, the TA 90 decreased by about 1.2%, and the cleantech and foreign yield indices fell by about 2.1%. The banks index climbed by 1.2%, and on the other hand, the biomed index fell by 3 % The trading turnover amounted to approximately NIS 2.6 billion.
● The government bonds underwent a shake-up: what does the Globes pulse index say about the situation in the economy?
The contracts on Wall Street register increases of up to 0.8%, after yesterday the trading day closed with a mixed trend – the Nasdaq index registered an increase of about 0.1%, the S&P 500 index retreated at the end by about 0.1%, and the Dow Jones registered a decrease of about -0.2%
In Asia the trend is mixed today. The Hang Seng index in Hong Kong registered an increase of about 0.2%, in Tokyo the Nikkei was cut by 1.3% and in Seoul the Kospi climbed by 1.1%. The Shanghai Stock Exchange is trading stably.
Dual stocks returned from New York with mixed spreads. Liveperson with a positive gap of 2.5% and a 1.2% gap, and vice versa Camtech with a negative gap of 1.2%.
As part of the report season is expected today nice publish results.
● Investment managers recommend where to put the money when the markets are turbulent
● Are the Treasury and the Bank of Israel worried? The Committee for Financial Stability convened to discuss the background of the turmoil in the markets
2. The bond markets
Yesterday, the US bond market saw a decrease in yields. The yield on the US government’s 10-year bond decreased by approximately 3 basis points to approximately 3.92%, and the yield on the two-year bond decreased by a basis point to approximately 4.69%. Now there is stability in trade.
In the local bond market yesterday, a volatile day closed with declines of up to 0.7% in long-term government shekels. Long-term index indices fell by 0.5%-0.9%. In the corporate market, the central Tel Bond indices recorded declines of 0.1%-0.2%.
● How will the upheaval in the foreign exchange affect our pensions?
3. The commodity and currency markets
In the commodity market, there are slight increases in crude oil contracts after they fell by about 3% yesterday. American WTI oil is trading around $74.3 per barrel and Brent oil is around $81 per barrel. Gold was almost unchanged at $1,836 an ounce.
In the global forex market, the dollar weakened by up to 0.1% against the euro, the pound and the Japanese yen.
In the local market, the rates of the main foreign currencies jumped sharply yesterday against the shekel in the morning, but then, as the trading day progressed, the shekel got stronger. The dollar jumped yesterday morning to NIS 3.69, but in the evening it weakened to NIS 3.63. The euro jumped up to 3.93 and then weakened to about 3.87 shekels.
Yonatan Katz, Chief Economist at Leader Capital Markets, notes that “Without a doubt, the rapid devaluation of the shekel will contribute to inflation when the transmission of the exchange rate is estimated at 0.1%-0.15% for every 1% devaluation against the basket of currencies. It is clear that it is difficult to predict the path of devaluation going forward, But it seems that the trend will continue as long as there is no sign of a reasonable compromise on the issue of legal reform. Continued sharp devaluation is expected to result in a response from the Bank of Israel. An interest rate increase should not be ruled out before April 3 when the Bank of Israel will have to fight inflation that is moving away from the inflation target. Another possible tool is the sale of mat “H in the market with the aim of mitigating days of extreme volatility, but not with the aim of preventing the devaluation trend”.
According to him, it should be remembered that “the Bank of Israel was reluctant to use this tool in March 2020 when a very sharp devaluation took place. Now, the devaluation trend reflects a real concern of investors regarding damage to Israel’s long-term growth potential, and therefore the Bank of Israel will not rush to intervene in the foreign exchange market.” The preferred tool will continue to be the interest rate (if the devaluation continues), and most likely an interest rate increase of 0.75% to 5% in the upcoming interest rate decision at the beginning of April (if the interest rate is not raised first). Our forecast assumes a continuation of a moderate rather than extreme devaluation, assuming that a certain deal is reached. If so, capital movements abroad will still continue but will slow down. In the meantime, markets abroad are also falling, which adds fuel to the fire.”
Increases are recorded in the crypto market. Bitcoin climbs by 2.5% and trades around $24,400 and Ethereum rises by about 3% and trades around $1,665.
4. Macro
Last night the minutes of the last meeting of the “Open Market Committee” of the Fed were published. The minutes show that the heads of the Fed are determined to continue the war against the high inflation in the US and noted that although there is a noticeable slowdown in the rate of inflation, more interest rate hikes are still necessary in the coming months.
Today (Thursday) the consumer price index in the Eurozone will be published, where inflation is expected to rise from 8.5% in December to 8.6% in February (last 12 months), despite an estimated monthly decrease of 0.2%. At 15:30, growth data in the US will also be published (a 2.9% increase in fourth quarter GDP is expected).
On Friday, the consumer price index in Japan, growth data in Germany and the private expenditure price index (PCE) in the US – the Fed’s preferred index for measuring inflation – will be published.
5. Forecast
Against the background of the upheaval in the foreign exchange market in recent days and weeks, Ronan Menachem, Chief Markets Economist at Mizrachi Tefahot, writes that the rapid devaluation of the shekel against the dollar may be the result of several factors: “First, it must be remembered that over the long weekend in the United States, trading volume was narrow and limited More – and the fluctuations on such days tend to be higher. Secondly, one must take into account the strong connection between the US stock markets and the shekel-dollar exchange rate. In recent days, I have witnessed price declines on Wall Street (due to the fear of continued interest rate increases there) and this forces institutional bodies to convert shekels into dollars, which contributes to the weakening of the Israeli currency.” .
In the meantime, he adds, “the budget figures for the month of January were disappointing. Expenditures increased, revenues moderated and fears that the surplus in the state budget would turn into a deficit (which would challenge the threshold of 2 and 3 percent of GDP and of course contradict the goal of a decreasing deficit) also had an effect. It should be remembered that A new state budget has not been determined since 2021 and this is not a healthy situation for the economy. And let’s not forget the security tensions on the eve of the month of Ramadan. I assume that the discourse on the subject will intensify in the coming weeks, which will not add health to the capital and foreign exchange markets. All of these are factors that credit rating companies such as Moody’s, Standard & Force and Fitch, as well as research bodies such as the OECD and the Monetary Fund follow, and any concern or talk about a possible damage to our debt rating soon drains into a depreciation of the shekel – even in ‘normal’ times.”
According to him, “The foreign exchange market, like any market, does not operate in a vacuum. The media discourse on the legal reform, the progress of the legislation and the protests – all of these cause the level of uncertainty to grow. This may affect the strength of the devaluation – although as mentioned, there are enough reasons to explain the direction. The phenomenon of self-fulfilling expectations may play a role here – even if for a limited time. Finally, the Bank of Israel recently issued a review that, admittedly, referred to the institutional entities, according to which it would be correct for them to transfer part of their exposure abroad, so that the similarity between the composition of their assets decreases. The only thing that can probably be “guaranteed” is continued volatility, due to the multitude of factors influencing the foreign exchange market,” writes Menachem.