July 18, 2012–Israeli stocks fell in New York to trade at the biggest discount to the Standard & Poor’s 500 Index companies in a year on concern the global slowdown will cut sales at companies from Retalix Ltd. (RTLX) to Magic Software Enterprises Ltd. (MGIC) (MGIC)
The Bloomberg Israel-US Equity Index (ISRA25BN) of the most-traded Israeli companies in New York dropped yesterday to the lowest level this year. The retreat pushed valuations to 12.2 times estimated earnings, the least relative to the average multiple for the largest U.S. companies since February 2011. Magic Software, a business software developer, slumped to a nine-month low and Retalix, the maker of supermarket software, fell the most in three weeks.
Israeli companies listed in the U.S. rely on Europe and North America for at least 56 percent of their average revenue, according to data compiled by Bloomberg. Federal Reserve Chairman Ben S. Bernanke said yesterday that financial strains have increased as unemployment in the U.S. rose from its April low, while joblessness in the euro region has climbed to the highest level on record. The Fed didn’t highlight specific policy actions to boost growth…Read More>>