Oil, Gas Buck TASE Trend
The benchmark Tel Aviv-25 Index declined by 0.3% to 1,115.07 yesterday, while the broader Tel Aviv-100 Index shed 0.4% of its value, closing at 989.64.
The trading day on the Tel Aviv Stock Exchange yesterday closed lower against the backdrop of a rise in the number of layoffs in July; the decision by Hutchison Whampoa to pull out of a deal that would have had it regain control of Partner Communications; and declines on Wall Street on Tuesday.
Partner shares actually rose by 4.25% yesterday, however.
The benchmark Tel Aviv-25 Index declined by 0.3% to 1,115.07 yesterday, while the broader Tel Aviv-100 Index shed 0.4% of its value, closing at 989.64. The Banks-5 Index was unchanged for the day, while the Real Estate-15 sank by 1.3%. Trading volume was NIS 830 million.
The Oil and Gas Index gained 2.3% yesterday after the final recommendations of the Tzemach committee, detailing the levels of natural gas exports that Israel should allow following sizable offshore finds, were leaked to the media. Reportedly, the panel is to recommend that more than 50% of the gas produced be allowed to be sold abroad. Ratio Oil Exploration shares jumped by 7.7%, while Avner Oil Exploration gained more than 3%. (Despite their names, both companies are also involved in natural gas exploration. ) Yitzhak Tshuva’s Delek Group’s shares gained 3.73% in trading yesterday.
On the negative side, Babylon, the language-translation software firm, dropped by 9% yesterday and by 35% since the beginning of the month amid rumors that that its business relationship with Google would be ending. In other developments yesterday, shares of the IDB Group’s Discount Investment subsidiary dropped by 6.2%, while Africa-Israel stock declined by 4.2%.
The future of Partner Communications is up in the air after Hutchison Whampoa pulled out of a deal to acquire a 75% stake in Scailex, a holding company controlled by Ilan Ben-Dov that owns 44.5% of Partner, from Suny Electronic. On Tuesday, Gilad Altshuler, the CEO of the Altshuler Shaham investment firm, called on Scailex bondholders to take matters into their own hands and “make themselves the shareholders of Partner.”
On the earnings front, a decline in the fair market value of the real estate of Eliezer Fishman’s Darban Investments, as well as a rise in financing costs and a decline in profits at some of its affiliates, were factors in Darban’s second quarter NIS 6.7 million loss. This contrasts with a NIS 108 million profit for the comparable period last year.
The company, which is a subsidiary of Jerusalem Economy, experienced a NIS 25 million decline in the fair market value of investment real estate, compared to a NIS 63 million increase in the comparable quarter of 2011. Although the firm’s investment real estate holdings in Germany declined, its Israeli holdings increased in value.
KMN Holdings’ Series Gimel (B3 ) bondholders’ representatives will be convening a meeting on September 5 to consider whether to demand immediate redemption of the company’s bond series. The meeting’s agenda is also expected to include a briefing on contacts between the bondholder representatives and controlling shareholder Roni Elroy, Yitzhak Tshuva’s son-in-law, as well as an update on contacts between the company and its bank lenders. The company owes NIS 209 million to its banks and NIS 67 million to the holders of three series of bonds.
Haaretz
