Trading Review: Ongoing Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations
12:30
Trading on the stock market has moved to a mixed trend. The Tel Aviv 35 Index erased the decline it recorded and traded around the opening level and the Tel Aviv 90 Index reduced the decline to 1.3%. The banks index is down 1.1%, the technology index is down 1.7% and the construction index is down 2%. The rise in the oil index is slowly erasing and is now advancing by less than 0.2%.
The trading turnover so far amounts to NIS 525 million, with the highest turnover being concentrated by a stock ICL Which has already jumped more than 7% to a market value of NIS 48.3 billion. The company overtakes both the Nice And both Leumi and is expected to end the day as the largest company in Tel Aviv. Fuel group Concentrates the second cycle in its scope and increases by 1.5%.
Siai Announced that it has received an order for the supply of WETSPEC micro-electronics monitoring systems to its customer in the Far East, in the amount of an order of $ 2.2 million.
Bern Reported the sale of shares among the controlling shareholders. Alrig sells its holdings (1.19 million shares) toAlexander Nassis, owner of controlling shareholder Investment Construction Technology for NIS 13.1 per share (Closing price at28 February). The company noted thatNo change in the control arrangements between the controlling shareholders in the company is expected.
11:30
While the declines in Tel Aviv continue, ICL Continues to climb by 5.9%, thus bypassing the market value of NICE and Bank Leumi and becoming the largest public company on the Tel Aviv Stock Exchange. national , Which is trading down 1.2%, drops to a value of NIS 47.3 billion, while the fertilizer and mineral company climbs to a value of NIS 47.7 billion. The company opened trading on the New York Stock Exchange last Thursday to celebrate its 30th anniversary being public, and to launch the start of its year of existence.
Meanwhile, Bank Leumi reported that the conditions precedent in the merger transaction between Leumi USA and Loali National Bancorp, which were reported last September, have been completed. Due to the receipt of the required approvals, the transaction is expected to be completed by April 1.
11:05
Trading on the stock exchange continues to be conducted in price declines. The Tel Aviv 35 Index is down 0.4%, the Tel Aviv 90 Index is down 1.6% and the Tel Aviv 125 is down 0.8%. Among the industry indices, the Technology Index is down 1.9%, the Construction Index is down 2.2% and the Banks Index is down 1.2%. On the positive side, the oil index is up 0.6%, and the trade turnover so far amounts to NIS 285 million.
Significant increases are recorded in Floristem Which jumps 12%, ICC which is strengthening 5.5% and the company for Israel is also doing well. On the other hand, significant declines are recorded forKamtech , Productivity Network Nova and Norstar.
Nostromo Energy Announced that the U.S. Patent Office has approved a patent application it filed, which covers the unique storage compartment it has developed including geometric features that allow for its modularity. This is the company’s first patent approved in the United States, and a parallel application has also been filed in Europe, China and Israel and is in the process of being examined. Photomain Reported that the American genetic information service provider Ancestry, which is controlled by the Blackstone Foundation, will implement its technology in its mobile applications. The agreement includes a $ 700,000 payment in the first year and future usage-dependent payments.
Cham , Which is engaged in the production of dried food products, announced that following its announcement from last July, it called on the sale of its activities in the field to the Pimi Fund (through “Marketing and Roasting Law”) for NIS 38.5 million. At the time of the announcement of the sale, Cham’s value was around NIS 49 million, and since then its value has risen to NIS 67 million. Today it is trading at an increase of about 4% in response to the announcement.
10:01
The trading day on the local stock exchange opened without delay from giving an oscillation (English opening) despite high arbitrage differences between Nova and ICC. The former is now erasing almost 7% while the latter is climbing.
The large indices are recording moderate declines, certainly relative to the falls recorded in Europe last Friday. TA 35 loses 0.3%, TA 90 decreases by a similar rate and TA 125 weakens by 0.4%. Crude oil over the weekend.
blender Announced the completion of the transaction for the acquisition of the Lithuanian Credit Union for approximately NIS 18 million. The union is in the advanced stages of obtaining a banking license in Europe. Michman Announced that it would allocate benefit shares to its shareholders in a manner that would reduce the company’s share price by 10 times and thus, make its share trading accessible to the private investor public. Analyte Energy Completed the public phase of the issuance of Series C shares and bonds by way of a series expansion of a total amount of approximately NIS 385 million.
08:45
Electra needs Reported that Pavilion Wines, whose acquisition of control it completed less than a year ago, signed a memorandum of understanding with the French retail giant Carrefour , According to which about 150 pavilion wine branches will be gradually converted to Carrefour branches. The first branches under the Carrefour brand will open before the end of 2022 and branded Carrefour products will begin to be sold at Pavilion Wines branches before the summer. Carrefour has 13,900 branches worldwide and an annual sales turnover of 81.2 billion euros. The franchise agreement between the parties is for a period of 20 years, with the possibility of extension for another 20 years.
At the same time, the company reported its results for the quarter and year: Revenues in 2021 grew by 81% to NIS 4.6 billion and revenues in the fourth quarter more than doubled (110%) to NIS 1.5 billion. Profit for the quarter grew by 23.4% to NIS 13.1 million, while net profit in 2021 decreased and amounted to NIS 171.9 million (compared with NIS 291.7 million in 2020). This is because in 2020 the company recorded a one-time profit of NIS 201 million from the sale of Golan Telecom.
07:50
5 things to know before opening a trade
Expect declines in the opening
The trading day on the Tel Aviv Stock Exchange will probably open with declines, after a bright negative trend in global markets last weekend.
The major indices ended last week with increases: Tel Aviv 35 Added 0.8% (but has decreased by 1.7% since the beginning of the year), Tel Aviv 90 Increased by 2.5% (and from the beginning advanced 1.5%) andTel Aviv 125 Increased by 1.3% (and decreased by 1% since the beginning of the year). Oil and gas index Jumped by 3.6% (and completed a jump of 29% since the beginning of the year) due to the jump in energy prices. Cleantech and construction indices rose 9% and 7% respectively last week. Banks Index On the other hand, it lost 3.3%.
This week, among other things, the banks’ reports are expected to be published (einternational Tomorrow, eWorking On Tuesday, Discount andnational On Wednesday) as well as reports from Electra Consumer, Amot, Nakes, Tadiran and Cellcom.
2. Red weekend in the markets
The Wall Street indices also closed down on the last day of the trading week. In a weekly summary, S&P 500 Decreased by 1.2% (and reached a decrease of 8.9% from the beginning of the year), eNASDAQ Fell 2.8% (and lost 14.8% since the beginning of the year) andDow Jones Dropped 1.2% (down 7.2% from the beginning of the year). The 10-year bond yield fell to 1.73%.
European indices also posted sharp declines of 4% -6% on Friday. In this week’s summary indices Dax The German andjackdaw The French were cut by 10% (down 17.6% and 15.2% respectively since the beginning of the year) andStokes 600 The European rule deleted 7% (and dropped 13.3% from the beginning of the year).
The US inflation data for February will be published on Thursday, when the price index is forecast to rise by 7.9% (following a rise of 7.5% in January). To raise it.
The duality will lead to an English opening
Trading is expected to open with a slight delay for the purpose of mitigating fluctuations (English opening) due to high arbitrage gaps toICL andNova – The first will jump in light of a positive gap of 7.5% while the second will fall by a similar rate. also Tower , Ormat , Nice andElbit Will be strengthened.
On the downside, Foresight , Kamtech andOrmed Open high gaps andLivePerson andnature Where with a negative gap of 3.5% each.
4. Oil and the dollar soared, Bitcoin weakened
Oil soared over the weekend by 7%, with the price of a Brent barrel soaring to more than $ 118 and US oil trading at $ 115.6 a barrel – a 25% increase in just one week. Since the beginning of the year, crude oil has risen by more than 70%.
The Bloomberg Commodity Index soared 13%, completing a 28% increase since early January. Wheat prices jumped 34% within a week and oat and rice prices also rose sharply.
The dollar also continued to climb and rose on Friday by 0.9% against the shekel, to a rate of NIS 3.274. Overall, the dollar rose 2.1% last week against the currency basket. Gold climbed 1.8% amid investor flight to more solid investment channels and rose to $ 1,970 an ounce. Bitcoin, on the other hand, once again lost ground and fell below $ 40,000.
5. How will the employment report affect US interest rates?
On Friday, excellent employment data were published in the United States, according to which 678,000 jobs were added in February, compared with pessimistic forecasts of an average of 400,000 jobs. The unemployment rate fell from 4% to 3.8% in February (when it was expected to fall to 3.9%).
Ronen Menachem, Mizrahi Tefahot’s chief economist, says that while most of the general and economic attention is given to the Russia-Ukraine war, the employment report could affect the Federal Reserve’s interest rate policy. “There is a given report that could decide that the first interest rate increase will be 25 basis points instead of 50 basis points and could affect the slowdown in the route of interest rate increases later in the year.” (The figure was updated downwards from 0.7%.) In the last 12 months, wages rose 5.1%, a slowdown from a 5.5% increase in the 12 months to January (this figure was also updated downwards from 5.7%). “0.5% this month and 5.8% in the last 12 months,” he explains.
According to Menachem, while the intensity of employment was pleasantly surprising, the important wage item surprised rather downwards, while stepping in place in February and downward updates to the data for January and December. “By most estimates, the rapid rise in wages is one of the main reasons for the rise in the US inflation environment. If the next few months also point to a halt in the rise in wages, there will be implications for inflation expectations. If the following economic data indicates the Federal Reserve’s ability to settle for a more moderate rate hike – this is good news for US stock markets, with an impact on major global stock markets as well.