This report provides an overview of current trends in various trading markets, including stocks, bonds, foreign exchange, and commodities, as well as analyst recommendations. The trading day on the stock exchange opened positively, led by the oil and gas sector with the TA 35 index rising by 0.7%, the TA 90 by 1%, and the oil and gas index by 10%. Notable increases were recorded for Ratio, New-Med Energy, Delek Group, Isramco, Fatal Possessions Energian, and Africa. Additionally, companies such as Elbit Systems and New-Med Energy reported increased revenues in 2022. Furthermore, a non-binding indicative offer letter was received by New-Med Energy from BP and ADNOC. In the currency market, the dollar weakened, while the euro strengthened. Finally, it is estimated that a slowdown in economic activity may occur due to the high share of high-tech in GDP and political uncertainty.
Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
10:07
The trading day on the stock exchange opened with a positive trend, led by the oil and gas sector. The TA 35 index climbs by about 0.7%, the TA 90 rises by about 1% and the oil and gas index jumps by about 10%.
Significant increases are recorded Ratio , New-Med Energy Delek Group, Isramco , Fatal possessions Energian and Africa.
company partner reported this morning that the net profit after neutralizing the effect of goodwill impairment amounted to NIS 170 million last year, a growth of 48% compared to NIS 115 million in 2021. Considering the effect of goodwill impairment, the net loss amounted to NIS 100 million. The company’s revenues grew by 3% to the level of NIS 3.463 billion.
08:40
company Elbit Systems reported today that revenues in 2022 amounted to approximately $5.5 billion, compared to approximately $5.3 billion in 2021. In the bottom line, Elbit reported that the net profit on a Non-GAAP basis amounted to $268.9 million (4.9% of revenues), compared to $367.6 million in 2021. US-GAAP net income amounted to $275.4 million, compared to $274.4 million in 2021.
A short time ago the partnership reported New-Med Energy that it received a non-binding indicative offer letter, from the two international energy companies BP and ADNOC, for the cash purchase of all participation units of the partnership held by the public (45%) as well as 5% of the participation units held by Delek Group . If the transaction is completed, the two companies will hold 50% of the partnership, and the Delek Group will hold 50% of the capital and control rights in the partnership. The offer was submitted at a price of NIS 12.05 per participation unit – which reflects a 65% premium over the price of the participation unit on the stock exchange at the close of trading yesterday.
In the local foreign exchange market, the dollar weakened by about 0.1% compared to its representative rate and traded around 3.554 shekels, and the euro strengthened by about 0.2% and traded around 3.84 shekels.
08:20
company Fatal possessions This morning reported revenues of approximately NIS 5.5 billion in 2022 compared to approximately NIS 3 billion in 2021. The profit before rent, depreciation and other expenses (EBITDAR) rose to approximately NIS 1.83 billion, compared to approximately NIS 1.18 billion in 2021. By neutralizing the IFRS16 standard, the company ends the year 2022 with a net profit of approximately NIS 114.2 million. After implementing the standard, the company ends the year 2022 with a loss attributable to the shareholders of NIS 78.7 million, compared to approximately NIS 226 million in 2021. Fatal’s management predicts that revenues are expected to jump this year to approximately NIS 7.2-7.5 billion and the EBITDAR is expected to be NIS 2.3-2.6 billion.
07:42
Five things you should know before the trading day in the stock market
1. The stock markets
The trading day at the Tel Aviv Stock Exchange is likely to open with a mixed trend. The high volatility that has characterized the trade in recent days is likely to decrease significantly, after Prime Minister Benjamin Netanyahu announced yesterday the freezing of the legislation of the legal revolution until the Knesset’s summer deadline in order to reach a broad agreement. In response to the speech, the chairman of the Histadrut announced the cancellation of the strike in the economy.
Yesterday, a volatile trading day in the stock market closed with sharp gains: the Tel Aviv 35 index registered an increase of 2%, and the Tel Aviv 90 index climbed by 1.5%. The construction index stood out with a sharp jump of about 4%, and the insurance index jumped at a similar rate. The turnover amounted to about NIS 2.4 billion.
● Netanyahu: “Pausing the legislation to reach a broad agreement, a time-out for negotiations”
Slight increases are now being recorded in futures trading on US stock market indices. Last night on Wall Street there was a mixed lock: the Dow Jones index rose by about 0.6%, while the Nasdaq index retreated by about 0.5%. The S&P 500 index registered an increase of about 0.2%.
● Give up the tax benefit and run away: huge withdrawals from the training funds
In Asia, the trend is mixed: the Hang Seng index in Hong Kong registers an increase of about 0.7%, in Tokyo the Nikkei falls by 0.3%, and in Seoul the Kospi climbs by 0.5%. The Shanghai Stock Exchange is trading stably.
Dual stocks returned from Wall Street and London with mixed spreads: Energian stands out with a negative gap of about 4.4%, andNova with about 1.8%, so they are expected to decrease; and vice versa Ormat with a positive gap of 1% and Teva with about 0.8%.
● After stopping the legislation: is the damage caused to the economy reversible and where should the money be put?
2. The bond markets
The government bond market in Tel Aviv joined in the celebration of the increases yesterday. Increases of about 1.4% were recorded in the long-term shekel government bonds, and the benchmarks recorded increases of up to 1.3%. The central corporate Tel Bond indices increased by 0.2%-0.3%.
On Wall Street, yields on American government bonds rose last night – the yield on the 10-year bond increased by 16 basis points to 3.54% and the yield on the two-year bond increased by 24 basis points to a level of approximately 4.02%. They are now trading stably.
3. The commodity and currency markets
The foreign exchange market was particularly turbulent yesterday. In the morning the shekel exchange rate continued to drop sharply in response to the dismissal of Defense Minister Yoav Galant, but in light of the reports that Prime Minister Netanyahu is expected to stop the legislation, the shekel did a U-turn and began to soar.
The dollar exchange rate, which at the beginning of the morning jumped by 1%, erased the increase and fell by more than 2% to NIS 3.55. After the establishment of the representative rate, the high volatility continued and the dollar jumped by about 1.4% and traded around NIS 3.61 and the euro jumped by about 1.5% and traded around NIS 3.893. After Prime Minister Netanyahu’s statement, the dollar traded around NIS 3.59 and the euro traded around NIS 3.877.
The commodity market is now seeing slight declines in crude oil contract prices after sharp increases of more than 4% last night. The price of gold registers a slight increase to about $1,960 per ounce.
In the global forex market, the dollar weakened by about 0.1%-0.2% against the euro and the pound and about 0.7% against the Japanese yen.
The crypto market stabilized today after yesterday’s sharp declines. Bitcoin is trading around $27,000 and Ethereum around $1,710.
4. Macro
In the macro field, no significant data will be published today. On Thursday, the latest growth figure for the last quarter of 2022 will be published in the US, with the estimates being that the GDP increased by 2.7% in an annual summary, and that the quarterly inflation rate derived from the GDP amounted to 3.9%. The Consumer Expenditure Price Index (PCE) will be published the following day. , the Fed’s preferred inflation measure, and forecasts are for a monthly increase of 0.4% in February and an annual rate of 4.7%, unchanged from January.
In the Eurozone, an initial figure of the consumer price index for the month of March will be published on Friday. According to the forecasts, inflation will moderate substantially to 7.2% on an annual basis, after measuring 8.5% in February.
5. Forecast
Bank Hapoalim’s economists estimate in their weekly review that the high share of high-tech in GDP, along with the political uncertainty, are expected to lead to a slowdown in economic activity and possibly even a contraction of GDP in the first half of the year. “The capital raising figures of high-tech companies published by IVC show a sharp decrease in raisings this year, to the level of about 1.8 billion dollars by mid-March, this compared to raisings of 15.6 billion dollars in 2022. The decrease in raisings will be reflected in reductions in personnel and salary expenses. Export services High-tech, which was the main growth engine of the economy last year, decreased by 0.9% in January, following a sharp decrease of 5.6% in December, and the total export of services also recorded a decrease in the last two months.
Regarding inflation and interest, they write that “the indices for the next three months will be affected by seasonal factors as well as the devaluation created in the exchange rate of the shekel, which is expected to continue to affect the prices of travel abroad. Activity in the economy is moderating and this should curb inflation in the second half of the year. At the current exchange rate level, inflation in the next 12 months is expected to be at a rate of 3.2%, slightly above the inflation target of the Bank of Israel.”
“The central banks are approaching the end of interest rate hikes, and the rate of increase has been reduced to 25 basis points in both the US and the UK. Inflation in Israel is similar in height to core inflation in the US and Europe, and it also shows no signs of moderation. We therefore estimate that the Bank of Israel’s interest rate will rise in the upcoming decision at the beginning of April by 25 basis points to a level of 4.5%, and then to 4.75%.”