The Tel Aviv Stock Exchange (TASE) rose to an unprecedented 1,000 points Wednesday.
The arbitrary but notable 1,000-point milestone was reached at 5:15 PM. The TA-100 index finished the day at 1,000.68, and continued to rise Thursday as well. The index has risen 8.7 % so far this year. Since the index was established in 1992, it has had a nominal return rate of 15.8 % (14.7 % relative to inflation).
Dr. Avi Simhon of Hebrew University told Channel 1 that the 1,000-point figure is, "not as significant as the fact that the TASE has grown tenfold in last 15 years, with hi-tech leading the way today."
Among those companies contributing to the record-breaking rise Wdnesday were Teva Pharmaceutical Industries (up 1.8 % on Wednesday), Bank Hapoalim (up 2.6 %), Bank Leumi (up 3.2 %), Bank Discount (up 2.8 %) and especially Retalix (up 6.2 %).
The TASE has grown tenfold in last 15 years.
The Tel Aviv Stock Exchange is Israel's only stock exchange. The precursor to the TASE was the Exchange Bureau for Securities, founded by the Anglo-Palestine Bank (which became Bank Leumi) in 1935. With rapid growth of the Israeli economy after the founding of the State, a formal stock exchange was incorporated and began operations in Tel Aviv in 1953. In 1983 the exchange moved to its current location in Tel Aviv.
Globes attributes the rise to a number of factors, including Standard & Poor’s elevation of its economic outlook for Israel, favorable reactions by TASE and Wall Street investors to the 2006 financial report by Teva Pharmaceutical Industries, and bullish international markets.
The TASE offers four programs under which companies can list on the exchange. Three programs are for normal operating companies and an additional venture program serves development-stage technology companies. In addition, the TASE has a program for the listing of Limited Partnership Units and allows for dual listing of any company accepted for trading on the NASDAQ, NYSE, AMEX, or LSE. TASE links to the US markets with a direct link with DTC, a subsidiary of The Depository Trust & Clearing Corporation, which facilitates the trading of dually listed securities.
Babylon Enters the TASE
Israel’s one-click translating company Babylon raised 30 million shekels Wednesday in its IPO on the TASE. According to Globes, the offering of stocks and warrants was even oversubscribed. “If the warrants are exercised, the company will make an additional NIS 76 million over the next four years,” it reports.
“We’re pleased to become the first Internet company traded on the TASE,” Babylon chairman Ze'ev Zilber said. “Babylon is one of the best-loved programs in Israel, and making the public a partner at the present time, when the company is growing rapidly, seems to us to be the natural and right step for continuing our development.”