2024-03-07 06:10:17
Trade review: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
08:14
Bank Hapoalim recorded a profit of NIS 7.4 billion in 2023, according to the bank’s reports published this morning (Thursday). The return on capital was 15% last year. This is compared to a profit of 6.5 billion shekels in 2022, an increase of about 12.7% which is mainly due to an increase in income which was partially offset as a result of an increase in expenses for credit losses.
08:09
Five things you should know before the opening of trading on the Tel Aviv Stock Exchange
1. The stock market
The trading day in Tel Aviv is expected to open with a mixed trend. Last night (Wed), the main indices closed in a mixed trend. The TA 35 index rose by 0.4% and the TA 90 index lost 0.3%. The biomed index stood out to the negative and decreased by about 1.3%. On the other hand, the Tel Aviv Bankim 5 index rose by about 1%.
Sopwave , the Aesthetic Medical Devices Company, on Wednesday published reports for the fourth quarter and for the entire year 2023, according to which revenues grew by approximately 41% to approximately $50.3 million, thanks to the expansion of sales of the company’s products, and an increase in repeat sales of components for devices owned by existing customers. Gross profit climbed by about 42% to about 37.5 million dollars in annual summary.
Revenues in the fourth quarter grew by about 11% to about 15.3 million dollars. The stock reacted with a jump of up to 7% at noon today.
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Kamada reported that revenues for 2023 were $142.5 million, representing a 10% increase over 2022. Adjusted EBITDA for 2023 was $24.1 million, a 35% increase over the previous year. Looking ahead, Kamada expects for 2024 revenues in the range of 156 to 160 million dollars and adjusted EBITDA in the range of 27 to 30 million dollars.
The medical equipment marketing company Novolog reported that it is expected to record in the reports for the fourth quarter of 2023 that it will soon publish a huge loss of NIS 47 to 57 million. This is due to a decrease in value resulting mainly from a reduction in the value of companies held in the company’s health services sector.
This morning in Asia, the main indexes are trading lower. The Nikkei shed about 1%, the Hang Seng shed 0.6%, the Shanghai Stock Exchange fell 0.2% and the Kospi rose 0.2%.
US futures are trading lower at this time.
Last night (Wed), the main indices on Wall Street closed higher. The Nasdaq rose 0.6%, the S&P 500 added about 0.5% and the Dow Jones rose 0.2%.
stock Mobileye jumped about 11% after the company reported that it is expected to sell about 3.4 million EyeQ chips to automakers in the first quarter of 2024, and that it expects sales to even double in the second quarter of this year.
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on the other hand, Tesla It fell about 2% after Morgan Stanley analyst Adam Jonas cut his price target on the electric car maker’s stock by about 25%. Jonas lowered Tesla’s target price to $320 from $345 but maintained the stock’s ‘overweight’ rating. Jonas also lowered Tesla’s 2024 earnings per share forecast to $1.51, down from his previous forecast of $2.04 per share. Since the beginning of the week, Tesla’s stock has fallen by about 12%.
The share of the regional bank New York Community Bancorp Bancorp plunged about 40% after it was reported that the bank stopped paying a dividend and tied up $500 billion to cover bad debts on two real estate investments. According to reports in Reuters and the Wall Street Journal, the bank is looking for outside investors to strengthen its balance sheet.
The Israeli company Biomix, which develops drugs based on phages, viruses that attack certain bacteria, is merging with a private company in the same field, Adaptive Phage Therapeutics, and the merged company is raising $50 million in a private offering. Biomix’s existing shareholders will own 55% of the merged company. Following the announcement, the Biomix stock jumped about 200% last night to a price that represents a value of 32 million dollars, still less than the amount of the issue.
2. The bond markets
In the local debt market, the corporate Tel Bond indices closed with slight gains last night (Wed). The Tel Gov Shekel 10+ index rose by about 0.1%. The yield on 10-year Israeli bonds decreased slightly and stood at 4.11%.
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In the US, government bond yields are rising slightly this morning. The yield on the 10-year US bond is 4.12%. And the yield on two-year bonds is 4.56%.
3. The commodity and currency markets
This morning (Thursday), the shekel is strengthening against the foreign currencies. The dollar weakened by about 0.7% against the shekel and stands at 3.58 shekels. The euro weakened by about 0.5% against the shekel and stands at 3.90 shekels.
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The price of a barrel of Brent oil rose to $82 on Wednesday. Crude oil traded up to $79 per barrel. The price of gold fell after breaking a record earlier this week, trading at $2,134 per ounce.
Bitcoin fell slightly from the value peak it set on Tuesday, to a rate of $66,000.
4. Macro
As part of the biannual conference in front of the Committee on Financial Services in the US Congress, Fed Chairman Jerome Powell arrived last night (Wed) to deliver the report on monetary policy in the US: in his speech to the committee, Powell referred to inflation in the US and emphasized that although inflation has decreased Significantly during the year, it is still above the Fed’s price stability target and emphasized that the fear of its increase still exists. At the same time, Powell noted the strong growth in the American economy, which grew by 2.5% in the past year. But on the other hand he said that the employment market is still tight.
The Israeli economy continues to recover, and according to Ofer Klein, Harel’s chief economist, “the real data published last week showed a continued recovery in private consumption”, referring to the increase in total credit card purchases in January by 3%, to a new record (according to seasonally adjusted data), and a 26% increase from October last year.
In Israel, according to Klein, “the preliminary data for February indicate continued growth, albeit at a more moderate pace. Still some ‘technical’ factors are expected to have a positive effect on consumption in the current quarter, including the election day holiday for local authorities which contributed to the increase in consumption, alongside the fact that this year there were 29 days in February”.
This morning (Thursday), the export figures in China were published, which increased in February by 7.1% at an annual rate, above the early expectation that predicted an increase of 1.9%.
Later today, the central bank of the Eurozone is expected to publish the interest rate decision. According to early forecasts, the ECB interest rate is expected to remain unchanged at 4.5%.
5. Forecast
David Kohl, the chief economist at Julius Baer Bank, writes in his review that “inflation data in the US and the Eurozone shattered the dreams of aggressive interest rate cuts. However, moderate interest rate cuts remain highly likely in 2024 in light of the decline in wage growth, which will also allow inflation to moderate gradually.”
In the US, higher-than-expected inflation data in January caused, according to Kohl, “a rethinking of the dates and extent of interest rate cuts. The Federal Reserve (Fed) is not expected to start lowering interest rates before June.”
Kohl believes the same is true for the European Central Bank (ECB), which is due to announce an interest rate decision on Thursday. This is because “February’s inflation data was a negative surprise, and accordingly the expectations for the first interest rate cut in the Eurozone were postponed to June.
“The updated macroeconomic forecasts will likely present lower inflation and growth expectations in the markets, which may encourage a certain willingness to reduce interest rates later this year.”
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