Sharp Declines in Tel Aviv Banks Index
Tel Aviv 35 loses 1%, TA 125 retreated by 0.8%; Shari Arison sold about 50 million shares of Bank Hapoalim at a total value of NIS 1.3 billion, becoming a bank without a controlling interest. Elbit Systems is expected to complete the acquisition of Israel Military Industries (IMI) by NIS 1.8 billion.
10:15 – Trading in Poalim shares opens and the share erases 5.1% against the background of the announcement that Shari Arison is leaving the controlling interest in the bank and has sold shares worth NIS 1.3 billion.
9:45 – The TASE opens the trading day sharply lower after the third trend recorded yesterday in New York and this morning in the Asian markets. Tel Aviv 35 loses 0.9%, Tel Aviv 125 retreats by 0.7%, the banks index falls by 1.2%. Bank Hapoalim is still in the pre-trading stage after reporting that the bank will become a bank without a controlling interest after Shari Arison sold about 50 million shares of the bank at a total value of NIS 1.3 billion. Leumi erases 2.2% of its value, Mizrahi Tefahot’s share is down 1.7%.
9:10 – Morning reports:
Bezeq: The communications group recorded a decrease in revenues of all the principal operating segments. Net profit for the third quarter of 2018 fell 27.3% to NIS 699 million, compared to a billion in the parallel quarter. Revenues fell by 4.7% to NIS 2.3 billion.
Delta Galil: Revenues for the third quarter of 2018 rose 9% to $ 370.8 million. The income of the French underwear company Amines, which Delta bought last May for 125 million euros, contributed $ 27.1 million. Net income after neutralizing acquisition costs of the activities of Immanance and Reorganization increased 15% to $ 16.6 million. Net income including one-time expenses decreased by 33% to $ 9.6 million. The company announced a dividend of 13.9 cents per share.
Victory: The improvement in terms of trade from the suppliers and the adjustment of the Internet price list to that of the stores led the chain of supermarkets to sign the third quarter of the year with a 24.5% rise in net profit to NIS 9.6 million. Sales rose 5% to NIS 426.2 million. The company announced the distribution of a dividend of NIS 10 million.
IEC: 4% decrease in revenues in the third quarter of 2018. The company ended the quarter with a net profit of NIS 3.77 billion – up 14.5% compared to the corresponding quarter of 2017. The Company’s activity in the quarter was affected, among other things, by one-time events – primarily the Company’s assets arrangement with the State. In this arrangement, it was decided that the company would return land to the state that it is not using, in return for the cancellation of debts in the amount of NIS 2.6 billion.
7:50 – Elbit Systems is expected to focus its attention on the acquisition of IMI, which will be completed today. Prime Minister Benjamin Netanyahu yesterday signed a permit to control IMI from the state for NIS 1.8 billion. The deal has been delayed so far because Defense Minister Avigdor Lieberman, who resigned only last week, did not sign the permit.
07:25 AM – Tel Aviv Stock Exchange (TASE) is expected to open on the back of the sharp falls in New York, Nasdaq lost 3%, Dow Jones fell 1.6% and the S & P 500 fell 1.7%. Technology shares lost 3.8%.
Facebook lost 5.7%, Apple – 4% and Amazon – 5.1%. Google fell 3.8% and Netflix – 5.4%. Each of these five shares, known as the FAANG, is now in a bear market after losing 20% of its value compared with its peak in the past year.