Israel Economics

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Upbeat Merrill report boosts TASE

11.1.06 | 18:47 By Nathan Sheva

Tel Aviv stocks gained strongly, again on heavy turnover, on Wednesday, after the Merrill Lynch investment bank released an upbeat report on Israel's economy.

The TA-25 index rose 1.2% to 824.5 points, the TA-100 index advanced 1.4% to 838.7 points and the TelTech-15 index added 2.4%. Turnover remained heavy at NIS 1.3 billion.

Battered bank stocks rallied somewhat today, after losing 8% in the preceding week. The banks were the main factor powering the blue-chip index today, after Merrill Lynch recommended focusing on companies that distribute dividends, such as the banks. Analyst Haim Cohen said Sharon's illness had raised Israel's risk premium, on the other hand. He recommended Teva (which dropped 0.1% today) as an insurance against the drops.

Bank Hapoalim (TASE: POLI) gained 3%. Bank Leumi (TASE: LUMI) rose 1.9%.

Israel Chemicals (TASE:CHIM), also one of Merrill Lynch's stock picks, eased down by 0.1% and yet another pick, Bezeq (TASE: BZEQ) climbed 2.7%.

Perrigo (Nasdaq, TASE: PRGO) stood out with a 4.7% increase on news that Cephalon may sign an agreement with it, to avert competition over Provogil. That could boost Perrigo's profit by 12% in 2006.

Alrov Real Estate jumped 4% after winning an arbitration proceeding that increases its compensation from the government over its obstacles halting the Mamila project in Jerusalem, by NIS 29 million. Altogether Alrov is getting NIS 109 million from the Jerusalem municipality, which had suspended construction there for years.

Holding company Mivtach Shamir leaped 9% due to the climbing value of its holdings.

Lipman (Nasdaq, TASE: LPMA) added 4.6%: inside a week its stock has rallied by 10%. CIBC World Markets wrote that it believes Lipman had a strong fourth quarter.

http://www.haaretz.com/hasen/spages/669128.html

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