GodTrading on the Tel Aviv Stock Exchange in November It opened with price increases of about 4% in the leading stock indices, increases that lasted until the last trading week. In the last trading week, a shake-up has hit the world capital markets following warnings from the World Health Organization against the spread of a new strain of Corona virus and the return of restrictions affecting the tourism industry. The markets responded with price declines, as did the Tel Aviv stock indices, which fell by about 2% in the last trading week.
In a monthly summary, the Tel Aviv-35 and Tel Aviv-90 indices rose this month by 0.7% and 2.8%, respectively, while the Tel Aviv SME60 index fell by 0.9%. This is compared with a decrease of up to 4% in the traditional stock indices In the US (Dow Jones and S&P 500) and leading European stock exchanges.
The price increases this month were positively affected mainly by the decline of the fourth wave of corona in the country, the announcement by the international pharmaceutical company “Pfizer” that it has developed a drug for Corona that will be submitted for FDA approval, and the expansion of vaccinations in Israel.
The decline in the fourth wave is reflected in: a decrease in the unemployment rate as shown by the CBS data – the rate of employed persons who are temporarily absent from work due to the Corona + the unemployed decreased to 5.6% in October 2021 compared to an average of 6.2% in July-September 2021; To examine the state of the economy as shown by data from the Bank of Israel – the composite index rose by 0.25% in October, after a negligible increase in each of the months July-September 2021.
The international credit rating company S&P has left Israel’s all-time high credit rating (AA – stable forecast) unchanged.
The Bank of Israel’s announcement of leaving the interest rate in the economy unchanged at 0.1%.
A mixed trend characterized the industry indices in November. The Tel Aviv-Construction and Tel Aviv-5 indices, which rose this month by about 6% and about 4%, respectively, stood out. On the other hand, the Tel Aviv-Biomed index fell by about 10% this month.
The daily turnover in the stock market, including mutual funds, increased and amounted to NIS 1.9 billion in November, compared with a daily turnover of NIS 1.7 billion on average in the previous two months.
On November 4, on the eve of the monthly update of the stock indices, the turnover of shares on the stock exchange amounted to NIS 3 billion, of which NIS 1.3 billion was in the closing phase.
Raisings in the Tel Aviv stock market this month amounted to NIS 1.4 billion.
About NIS 208 million was raised this month by four new companies in initial public offerings (IPOs):
Two technology companies
Siphia Vision An R&D company engaged in the development of technologies and products for vehicle interior monitoring raised approximately NIS 68 million at a company value of approximately NIS 346 million after the issue.
Approximately NIS 67.5 million was raised in a non-uniform offer to institutional investors (Book Building) and approximately NIS 0.5 million was raised in a uniform offer to the public. In the public offering, there is an excess demand of 20 times the amount offered.
TurboGen An R&D company engaged in the development of products for the local production of electricity used for heating buildings raised about NIS 18 million in a uniform offer to the public, at a company value of about NIS 143 million after the IPO.
Two companies from other industries
beam An investment fund in the fields of communications and energy, raised about NIS 80 million in a non-uniform offer to institutional investors (Book Building), according to a company value of about NIS 256 million after the issue.
Soprin, A construction company that organizes purchasing groups, real estate development and income-producing properties, raised about NIS 42 million in a non-uniform offer to institutional investors (Book Building), according to a company value of about NIS 157 million after the issue.
About NIS 1.2 billion was raised this month by 18 long-standing companies, including: the Keystone Reit investment fund, which raised about NIS 350 million in a non-uniform offer of shares to institutional investors (Book Building); the oil and gas partnership Navits Petroleum, which raised about 153 million Shekel in issuing convertible bonds to the public; And the construction company Israel Canada, which raised about NIS 145 million in a private allotment of shares to institutional and other investors.
The dual companies raised about NIS 330 million abroad this month. About half of the amount, about NIS 155 million, was raised by Biomed Ormed by issuing shares to institutional investors in the United States.
A third stock company joined the TASE UP platform this month The American Group 11 venture capital fund, which invests in fintech companies, is the third year to raise shares and list NIS 225 million worth of shares in TASE UP.
In the bond market, a mixed trend was recorded in November in the leading indices.
Fixed interest shekel bonds – government and corporate – rose by about 1.5% -2% this month. NIS 10-year fixed-rate government bonds rose 4.7% this month. The yield to maturity of 10-year shekel government bonds fell from about 1.45% at the end of October 2021 to about 1.1% at the end of November 2021. This is similar to the yield to maturity of 10-year US government bonds, which fell from about 1.6% At the end of October 2021 to about 1.45% at the end of November 2021.
Government CPI-linked bonds rose by 1.6% this month, following an increase in the inflation rate in Israel, while corporate index-linked bonds remained virtually unchanged this month.
Foreign exchange-linked corporate bonds fell by 1.2% in parallel with the volatility of the dollar. The dollar fell to NIS 3,074 in the middle of the month – the lowest in 26 years, and then rose back to NIS 3.16 towards the end of the month – At the end of the previous month, under the influence of dollar purchases by the Bank of Israel.
The bond market also saw an increase in activity this month, and the daily turnover of bonds amounted to NIS 4.5 billion in November, the highest turnover since March 2021.
Most of the increase this month in the trading volume of bonds comes from corporate bonds (including mutual funds) whose daily turnover rose from about NIS 0.8 billion in the previous month to about NIS 1.2 billion in November. On November 18, on the eve of the update of the Tel Bond indices, the turnover in government bonds and companies on the stock exchange amounted to NIS 11.7 billion, of which NIS 7.7 billion in corporate bonds.
The daily trading volume of CPI-linked government bonds also rose from NIS 0.9 billion a day in the previous month, to NIS 1.1 billion in November. On the other hand, the trading volume of shekel government bonds fell from about NIS 2.4 billion in October to about NIS 2.1 billion.
In a short-term lender – The daily turnover amounted to NIS 0.6 billion in November, more than double the turnover in the previous month.
Fundraising in the Tel Aviv bond market by the Treasury in November amounted to NIS 5.8 billion. About 71% of the amount raised this month was made in shekel bond issues, and about 29% of the amount raised in index-linked bonds.
Raisings in public offerings and private allocations in the Tel Aviv bond market by the business sector amounted to NIS 11.1 billion in November. About NIS 10.4 billion of these were raised in 15 public bond issues:
About NIS 7.3 billion was raised by three banks. Most of the amount:
NIS 4.6 billion was raised by Discount Bank in the issuance of three new series of bonds – about NIS 3.1 billion in CPI-linked bonds with a 6-year maturity, at an interest rate of 0.2% in the AAA rating by Maalot and Aaa by Midroog, about NIS 0.9 billion in commercial securities without discount and interest at a rate of 0.3%, and about NIS 0.6 billion in COCO-linked bonds, which includes a mechanism for absorbing losses by deleting the fund, at an interest rate of 0.2% with the option For early redemption in November 2027, AA- rated by Maalot and Aa3 by Midroog.
NIS 2.3 billion was raised by Bank Leumi in the issue of two new series of index-linked bonds, interest rate 0.1%, rated AAA by Maalot – one series in a 6-year maturity, and another series in an 8-year maturity .
NIS 3.1 billion was raised by 12 companies in the real estate sector. Most of the amount of NIS 2.2 billion was raised by seven companies in the real estate industry, led by the real estate company Maniv Alrov Real Estate, which raised NIS 0.6 billion. Issued a new series of CPI-linked bonds, 5.7-year MHM, 0.5% interest, rated AA- by Maalot. The company is expected to have marketable bond redemptions in the amount of NIS 440 million in the next two years.
About NIS 0.7 billion from this month’s raising was made in ten private allotments of bonds to classified investors.
An additional NIS 0.2 billion was raised this month in bonds allotted to institutional investors and traded on TASE UP. Most of the amount, about NIS 160 million, was raised by the (non-exchange) partnership YHK Investments, which is refinancing a series that has reached final maturity, through the issuance of a new series of shekel bonds, a 3.9-year maturity, 2.9% interest. , Ranked A by “Maalot”.
The derivatives market this month was characterized by trading volumes similar to those recorded in the previous month.
The daily trading volume of options on the Tel Aviv-35 index (Monthly and weekly) amounted to about 108,000 units in November, similar to the turnover in the previous month. It should be noted that the VTA35 volatility index fell from about 26 points at the end of October 2021 to about 12 points in the fourth weekend of November and rose to about 16 points at the end of November 2021.
The daily trading cycle in dollar options Amounted to about 41,000 units in November, similar to the turnover in the previous month.
In the mutual fund market, three new Migdal mutual funds were listed for trading this month on international stock indices – two funds on the NASDAQ 100 stock index (one of the funds is neutralized by currency) and a mutual fund on the FTSE China A50 index.
The market value of the 551 mutual funds traded on the stock exchange at the end of November 2021 was NIS 1.1 billion higher than the value at the end of the previous month and amounted to NIS 102.3 billion.
Most of the increase in the value of public holdings: about NIS 1 billion increase in the value of mutual funds on stock indices in Tel Aviv – about NIS 0.6 billion increase due to the increase in stock indices, and about NIS 0.4 billion increase in public purchases; The value of mutual funds on international stock indices remained unchanged this month, with an increase of NIS 0.2 billion in the value of funds due to public purchases, fully offset by a decrease in value due to the decline in stock indices.
The value of mutual funds on corporate bond indices in Tel Aviv rose by NIS 0.1 billion this month, an increase that is attributed to public purchases.
In the mutual fund market, public purchases of mutual funds investing in bonds in Tel Aviv continued and amounted to NIS 2.4 billion net in November, following purchases of NIS 2.8 billion in the previous month.
Public purchases of mutual funds on local stock indices amounted to NIS 0.7 billion net in November, following purchases of a similar amount in the previous month.
Public purchases of mutual funds on international stock indices and bonds were almost completely halted in November, following a trend from the previous month.
In the monetary funds, public sales continued and amounted to about NIS 0.5 billion net in November, following sales of a similar amount in the previous month.
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