Trading on the Tel Aviv Stock Exchange closed unchanged in the leading indexes after the interest rate hike in Israel. The Tel Aviv 35 index was unchanged, the Tel Aviv 90 index added 0.1% and the banks index rose by 0.38%.
The Bank of Israel raised the interest rate in the economy by 0.5% to 4.25%, and this against the background of the continued increase in inflation and alongside the strong growth of the economy.
Delek shares jumped 3.9% in the background of its return to paying a dividend. The company announced a dividend distribution of NIS 450 million, after receiving a dividend of NIS 420 million from its subsidiary Ithaca.
Elbit Systems increased by 2.44%, Amot climbed by 1.75%, Big increased by 1.2%, on the other hand Strauss lost 2.1%, Ofc Energy decreased by 1.8%, Eloni Hatz lost 1.26% and Electra decreased by 1.55 %.
The parent’s share lost 8.8%, Mitronics rose 5.3%, Continuous jumped 49% in the background of its sale for $2.5 million to Radcom. Electreon rose another 3.7%, Norstar jumped 5.77%, Intellica rose about 10%.
10:10
The Tel Aviv Stock Exchange is trading with slight price drops on the second trading day of the week, the Tel Aviv 35 and 125 index are down 0.35% after opening the day around the base rates. Bank shares pull the market with a 0.6% drop in the index. The trading turnover is low and stands at about NIS 70 million in half an hour of trading.
Zuz Power continues the positive trend from yesterday and rises 9% in a turnover of about NIS 1 million without any announcement. Electreon also continues the positive trend with an increase of about 4% after taking off over 31% yesterday.
The long-term government bonds drop up to 0.4% before today’s interest rate announcement by the Bank of Israel, the shekel 0432 bonds in the near 10-year maturity lose 0.2%.
Rakah, controlled by the Fimi Foundation, is purchasing Emek Jezreel Teva Products for approximately NIS 10.5 million.
Europe’s stock exchanges are trading around the base rates when there will be no trading in the US today for Presidents’ Day.
9:50
Trading on the Tel Aviv Stock Exchange is expected to open following yesterday’s declines in the local market, and in anticipation of the Bank of Israel’s interest rate announcement. There will be no trading on Wall Street tonight due to Presidents Day.
The Bank of Israel will publish today at 16:00 the level of interest in the economy, with opinions in the market divided as to whether Governor Amir Yaron will be satisfied with an increase of only 0.25%, or whether he will raise interest rates at a higher level in view of the deviation in inflation and the negative surprise from the January data, alongside the weakening of the shekel that may manifest itself in the form of an increase in inflation.
The market will closely follow the governor’s announcement, if it includes a reference to the warnings coming from the OECD and Fitch regarding the weakening of the legal system in Israel.
The dollar touched the level of 3.55 shekels following the weakening of the shekel by about 6% against the dollar in the last three weeks.
Discount Bank (1,8380.38%+) freezes the increase in mortgage payments for customers who have difficulty paying the monthly repayment due to increases in the Bank of Israel’s interest rate and the increase in the index.
Elektreon(5,7212.34%+) will continue to gather interest after jumping by a double-digit rate yesterday without announcement, completing a move of about 75% since the beginning of the year.