Aug.15, 2012 | 6:10 AM–The Tel Aviv Stock Exchange yesterday reversed its Monday slump, cheered by a string of positive corporate earning reports and some fresh reasons to hope that stimulus measures will be undertaken in Europe to revive the continent’s beleaguered economies.
Traders said a possible Israeli military strike against Iran remained a topic of concern but took a backseat to more bullish news.
The benchmark TA-25 index closed up 0.7%, at 1,091 points, while the broader TA-100 index added 0.6%, to 978 points. The Banks 5 index, which has borne the brunt of this week’s declines, made an even sharper turn, rising 2.7% largely by Bank Leumi shares to close at 798 points.
European shares advanced yesterday in a broad-based rally, as investors focused on expectations of fresh stimulus measures from the region’s policymakers. Second-quarter GDP results from France and Germany beat forecasts, easing concerns about the euro zone’s two largest economies. The region as a whole contracted over the period, maintaining support for the case for ECB action.
The FTSEurofirst 300 provisionally closed 0.6% higher, at 1,101 points, after losing 0.4% in Monday’s session.
Some relief was also evidenced in the foreign currency market. The dollar yesterday retreated from its gains on Monday to settle at a representative rate of NIS 4.03. The euro, which briefly breached the NIS 5 barrier, also weakened against the shekel to close at a representative rate of 4.98 yesterday.
Communications shares rallied on the back of second-quarter earnings reports by Cellcom Israel and Partner Communications (Orange ). Both companies reported sharply lower earnings (see story on page 12 ), but cost-cutting enabled them to maintain or even increase their profitability, said Rami Rosen of Harel Finance.
Cellcom jumped 5.1% and Partner by 5.4%. The communications index rose 2.7%, boosted by other companies as well: HOT Telecom advanced 3.5%…Read More>>