Last month saw several expressions of confidence in the forecast for Israel’s economy in 2004.
The New York Times carried an article in its December 14 edition that noted the impressive rise in the Tel Aviv Stock Exchange’s Tel Aviv 100 index. The TA100 gained 52% (65% in US dollars) during 2003, while Nasdaq marked only a 46% increase. Neil Gregson of the First Israel Fund at Credit Suisse told the newspaper, “We are cautiously optimistic regarding Israeli equities, given an improving macroeconomic backdrop for the market from both a global and domestic perspective....” One reason for this situation on the Tel Aviv stock market, according to the New York Times is that many of the publicly traded companies sell to global markets and are, therefore, almost immune from local turmoil. As the New York Times explained, Israeli exporters have benefitted as the shekel has fallen against the dollar; while competitive salaries have attracted firms and investors to the country’s various sectors.
A few days later (December 16), Globes, Israel’s financial newspaper, carried an interview with Ernst & Young Israel chairman Yitzhak Forer, in which he commented, simply, “2004 will be an excellent year for Israeli high-tech.”
According to Forer, venture capital funds in the US and Europe are intending to raise their global investments in 2004, and “17% of overseas investments by US funds will be channeled to Israel. Israel is the number one destination of American venture capital funds outside the US.” In Europe, Forer told Globes, “we're the second most important investment destination, after China.”
In general, Forer concluded, “The fact that American funds will invest in Israeli companies should encourage investment in Israeli funds. We'll see 10-15 new investments by foreign funds during 2004. This will be a good year for high-tech and we'll be participating in the celebrations.”
The New York Times carried an article in its December 14 edition that noted the impressive rise in the Tel Aviv Stock Exchange’s Tel Aviv 100 index. The TA100 gained 52% (65% in US dollars) during 2003, while Nasdaq marked only a 46% increase. Neil Gregson of the First Israel Fund at Credit Suisse told the newspaper, “We are cautiously optimistic regarding Israeli equities, given an improving macroeconomic backdrop for the market from both a global and domestic perspective....” One reason for this situation on the Tel Aviv stock market, according to the New York Times is that many of the publicly traded companies sell to global markets and are, therefore, almost immune from local turmoil. As the New York Times explained, Israeli exporters have benefitted as the shekel has fallen against the dollar; while competitive salaries have attracted firms and investors to the country’s various sectors.
A few days later (December 16), Globes, Israel’s financial newspaper, carried an interview with Ernst & Young Israel chairman Yitzhak Forer, in which he commented, simply, “2004 will be an excellent year for Israeli high-tech.”
According to Forer, venture capital funds in the US and Europe are intending to raise their global investments in 2004, and “17% of overseas investments by US funds will be channeled to Israel. Israel is the number one destination of American venture capital funds outside the US.” In Europe, Forer told Globes, “we're the second most important investment destination, after China.”
In general, Forer concluded, “The fact that American funds will invest in Israeli companies should encourage investment in Israeli funds. We'll see 10-15 new investments by foreign funds during 2004. This will be a good year for high-tech and we'll be participating in the celebrations.”