Acceptance of President Herzog’s compromise agreement and a negative atmosphere from the US send the Tel Aviv Stock Exchange to lower prices at the start of the trading day. The leading indices Tel 35 and 125 lose about 1.1%, the dollar responds with an increase of 0.6% to a level of 3.61 dollars per shekel.
Liveperson loses 7.6% after plunging last night in the US and returning with a negative arbitrage gap, Teva and Ofco also lose about 5% due to last night’s dive in US trading.
Gencel is down 5% after announcing a $15 million impairment in 2022 reports.
Arit Industries jumps about 40% after announcing a 10-year agreement with a security company in East Asia. Reshef Technologies, the subsidiary company will supply artillery mortars in the amount of 17-19 million dollars per year (about 170-190 million dollars over the entire period).
8:50
Trading on the Tel Aviv Stock Exchange is expected to open this morning (Wednesday) after the Purim holiday in the shadow of the Fed’s signaling of continued interest rate hikes in the US, and in the shadow of the warning by the international rating agency Moody’s that Israel’s rating is in danger if the legal reform passes.
The weighted arbitrage spread of the dual stocks is negative at a rate of 0.7%, ACL returns with a negative spread of 2.3%, Teva returns with a negative spread of 6%, Liveperson with a negative spread of 8.7%, Nice with a negative spread of 1 %.
Last night in New York, the indices recorded declines in the shadow of the Fed Chairman’s speech. The Dow Jones index fell by 1.7%, the S&P 500 index lost 1.5% of its value and the Nasdaq index fell by 1.3%. The yield on the US government’s two-year bond rose last night to a peak not seen since 2007 – a level of 5.01%.
Jerome Powell said in his speech last night that the Fed will raise interest rates in the US several times in the coming months, and will also be ready to increase the rate of interest rate increases again following stronger than expected employment and inflation data published recently.
The international credit rating company Moody’s aligns with Fitch and also attached a warning to Israel against the consequences of the legal reform. “Full implementation of the reform may weaken the judicial system, and damage the credit rating,” the credit rating company warned yesterday.
The dollar strengthens by about 0.8% to the level of NIS 3.61, and this in the shadow of Moody’s warning and an impasse in negotiations for a compromise that will settle the political dispute. On normal days, the declines in the American market should have also provided pressure on the shekel, but the correlation of the currency to the American market has recently become disconnected.
reporting companies
Arit Umidah updated that following the winning of its subsidiary, Reshef Technologies, in a commercial agreement with a defense company in South Asia for the supply of 500,000 artillery rounds per year for a period of 10 years (a total of 5 million rounds), its share in the multi-year tender is approximately 17-19 1 million dollars on average per year (170-190 million dollars for 10 years).