TA-25 INDEX AND INTERNATIONAL INDICES
2003-6/2009 (In US$ terms)

 
Equity Market

The TA-25 share price index rose 28% over the first six months of 2009 and some 50% since its lowest point on 23 November 2008. In contrast to the performance of the TASE, the key share price indices of leading exchanges abroad raised by average of 10% during the first half of 2009, following plunging prices in January and February.

Sharp price increases, ranging between 47% and 107% marked most of TASE’s other leading indices, including the Nadlan-15 real estate index, the Tel-tech 15 index of hi-tech shares and the Yeter 120 index of small-cap shares, which suffered extreme price declines ranging between 65%-80% in 2008. The TA Finance-15 index of financial services shares, which fell 6% in the first quarter following the announcement of Q4 losses as well as negative developments in the banking industry abroad, recovered in April-June with a dramatic 55% increase.

Average daily turnover of TASE for the first quarter of 2009 came to US$ 300 million, but in the second quarter rose to US$ 430 million- some 20% lower than last year’s average. 

THE EQUITY MARKET PRICES AND TURNOVER, 1998-2009

 
Activity on the derivatives market slowed in comparison to 2008, with average daily turnover coming to 250 thousand contracts as opposed to 330 thousand last year.
This year TASE launched trading in options on individual shares, with Israel Chemicals being the first company to have exchange-traded stock options written on its shares. The launch of options on Bank Hapoalim, Bank Leumi and Teva Pharmaceutical Industries shares soon followed.


The Equity Market

Fixed Income Market

Corporate debt was the asset class on TASE hardest hit by the financial crisis. Corporate bonds experienced precipitous price declines in the closing four months of 2008. Prices began to recover, however, in the first half of 2009.

The index of CPI-linked corporate bonds gained 26% during the first six months of 2009, after a 16% decline in 2008. In contrast, prices of non-linked "Shahar" government bonds, which stood out in 2008 with a 14% increase, dropped 2% during the opening six months of 2009.

Trading on the bond market continued to be active with average daily turnover coming to US$ 1.1 billion – similar to 2008 record volumes.

Israel’s private sector raised US$ 4 billion debt financing through public offerings and private placements to institutional investors, compared with $6.6 billion in all 2008, undertaken by large non-financial companies with high credit ratings and commercial banks.

The Fixed Income Market

NEW - Exemption on Interest received by Foreign Residents on Bonds issued by Israeli Public Companies

A new amendment exempts the interest income, discounts and linkage differentials received by foreign residents holding bonds, issued by Israeli companies, which are listed on the Tel Aviv Stock Exchange.