The TA 35 and TA 125 indices decrease by about 0.5%; Intel justified the decision to withdraw from the purchase of Tower by not receiving the regulatory approval from China; Tafron jumps by 11% in abnormal turnover – reported a 24% improvement in operating profit; Mitronics loses 6.5% after the reports.

After the end of the bank report season yesterday, this is what the stocks in the sector did today: Discount rose by 0.7%, Leumi rose by 0.6%, Poalim fell by 0.2%, International fell by 0.3%, Mizrahi Tefahot fell by -1.1%

As part of the GDP data published by the Central Bank, it was also stated that the investment in high-tech decreased in the quarter by 19.4% on an annual basis. The Tel Aviv Tech Elite index is currently decreasing by 0.7%, Turbogen falls by 13% to the bottom of the index in an unusual cycle Per share, Tower loses 10.5%, Hyper Global weakens by 10%.

GDP data is out: growth in the second quarter was 3% compared to the first quarter of 2023. This is according to the national accounting data published today by the CBS.

This annual growth rate corresponds to the latest growth forecast of the Bank of Israel for 2023, after last July the bank updated the forecast upwards, and the forecasts of the OECD (2.9%) and the rating companies Moody’s and Fitch (3.1%). The actual growth in the second quarter compared to the first quarter was 0.7%.

Before the publication of the growth data, the 10-year Israeli bond yield drops by 5 basis points to 3.90%.

Tafron jumps by 11% after successful reports, and has a very unusual turnover of almost NIS 1.4 million, against a daily average of NIS 81 thousand in the last three months.

The company reported sales of $65.4 million in the second quarter, an 11.7% growth compared to the corresponding quarter in 2022. Operating profit increased by 24.2% to 5.2 million dollars. The net profit was 2.9 million dollars, compared to 2.1 million dollars at the same time, an increase of 41%.

The gains in the stock market were wiped out, the TA 35 and 125 indices moved to decreases of 0.1%; at the ends of the TA 90 – Equitel rises by 2.8% at the top, Mitronics falls by 7.3% at the bottom.

After a long trading break, trading resumed in Tower, the stock falls by 8%.

Ora Smart updates that she did not set aside payments for social rights to employees (contributions to provident funds and training funds) for the month of July, 2023 in a total amount of 30 thousand dollars. “The company paid its employees the net component of the salary for the month of July 2023 for all employees, with the exception of the company’s management, two additional employees and the controlling owners of the company who have not yet received their salary as mentioned, in a total amount of approximately 45 thousand dollars.

The company also updates that, in its estimation, on August 20, 2023, it will not have sources to pay the deduction component to the National Insurance Institute and the Income Tax for the July 2023 salary in a total amount of approximately 40 thousand dollars.

Trading opens, Tel Aviv 35 index rises by 0.3%, Tel Aviv 125 rises by 0.1%. Tower shares fall by 11.8% at the bottom of TA 35, still in the pre-stage, following Intel’s announcement of the cancellation of the deal to purchase Tower. This after regulatory approval for the deal was not received in China.

Tower shares are actually on a complete trading halt “until a substantial report is published” – Intel has already announced the cancellation after early reports about it came out in the global media; They published reports: Nevena increases by 1.7%, Mitronics falls by 7%, Tafron jumps by 13%.

Published reports: Matrix, the Israel Society, Isracht, Mbane, Navi, Africa Residences, Mitronics, Albad, Avrot and Taferon.

Intel is expected to cancel the deal worth 5.4 billion dollars to purchase the Israeli chip company Tower Semiconductor (Tower Semiconductor). This is after the Chinese regulator did not give its approval for its completion – according to reports in Bloomberg and Reuters this morning. Intel will pay Tower $353 million in cancellation fees.

The Tel Aviv Stock Exchange will open the trading day against the backdrop of negative sentiment in foreign markets. Tokyo is cut this morning by 0.9%, Shanghai weakens by 0.3% and Hong Kong drops by 1.3%.

Last night in New York – the Dow Jones index was cut by 1%, the S&P 500 retreated by 1.2% and the Nasdaq fell by 1.1%. In the background, there were fears of a downgrade of dozens of American banks, including large banks such as J.P. Morgan and Bank of America at the rating agencies, when this affects the sentiment of the entire market.

Yesterday in Tel Aviv a quiet lockdown: the Tel Aviv 35 index fell by 0.2%, the Tel Aviv 125 retreated by 0.1%, while the banks rose by 1.1% after another day of reports showing increases in profits.

Earlier during trading, the 10-year Israeli bond yield rose to 4%, for the first time.

After the reports of three other banks that presented profits – Leumi rose 1.4%, Mizrahi Tefahot lost 0.6% and International is stable. Even after the reports – Strauss fell by 0.8%, Elbit Systems retreated by 1.4%.

Also, at 13:00 the growth figures in Israel for the second quarter will be published, with the forecasts being for a slowdown to 2.5% growth in the second quarter after a 3.2% growth in the first quarter.