The Tel Aviv Stock Exchange ended the first quarter with a profit of NIS 14.7 million, compared with a total of NIS 9.7 million in the corresponding quarter last year, an increase of 52%. The stock exchange noted that the increase in profit was due to an increase in income, which was partially offset by the increase in expenses and the transition to financing expenses.
Revenues amounted to NIS 97.7 million, an increase of 25% compared with the corresponding quarter last year, due to growth in all items of activity, including a 16% increase in revenues from trading and clearing commissions, which amounted to NIS 39.4 million. This is mainly due to an increase in trading volumes in shares compared to the corresponding quarter last year, as well as an increase of two trading days between quarters.
The stock exchange explained that since the first quarter of the year was characterized by high volatility and uncertainty in the markets, stock trading volumes were 38% higher than the average turnover in all 2021, against the background of the attack on Ukraine, fears of inflation and interest rate hikes in the US, Europe and Israel.
At the same time, there was a moderation in the number of initial public offerings, similar to the decline in other stock exchanges, with 8 issues in the first quarter of the year, which raised about NIS 1.4 billion, with three worth more than NIS 1 billion. At the same time, there were vigilant fundraisers in the stock market, in the amount of NIS 7.5 billion, close to 30% of all fundraisers in 2021, while in the bond market there were also vigilant fundraisers from the public in the amount of NIS 24 billion, 31% in 2021. .
The leading TASE indices TA-35 and TA-90 continued to perform well compared to those that recorded the flagship indices on leading stock exchanges in the world. In the first quarter, they recorded a positive return of about 2% on average, compared with a decrease of about 5% in the Dow Jones and S&P 500 indices, a decrease of 9% in the EURO STOXX 50 index and a decrease of 6% in the MSCI index. These gaps, among other things, led to the increase in the amount of foreign money entering the stock market in the first quarter of 2022, amounting to NIS 3 billion net in shares, following purchases of NIS 13 billion net during 2021.
Simultaneously with the increase in revenues, there was also growth in costs in the first quarter of the year, and they amounted to NIS 73.4 million, an increase of about 12%. The increase in costs is mainly due to an increase in marketing expenses, as a result of the timing of campaigns and an increase in expenses for employee benefits, as a result of salary updates and provisions for grants.