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The Tel Aviv Stock Exchange (TASE) today published its semiannual updates


From: Globes, 19 December 2006

Amir Keidan


New indices’ composition published ahead of the semiannual update: Kardan NV joins the Tel Aviv 25 Index. As expected, Koor and Migdal are leaving the top index. Paz Oil is only in the Tel Aviv 100 Index, which will see the relegation of First International Bank, Orckit and Shamir Optical, among others.


The Tel Aviv Stock Exchange (TASE) today published its semiannual update, which will come into effect on January 1.


As expected, the Tel Aviv 25 Index will henceforth include Kardan NV (TASE: KRNV; AEX: KARD), and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) and Koor Industries Ltd. (NYSE; TASE: KOR) will leave. The index has included 26 shares since Verifone Inc. (NYSE; TASE: PAY) was listed for trading on the TASE.


Nine new stocks will join the Tel Aviv 100 Index. Migdal and Koor, which have been ousted from the Tel Aviv 25 Index; and Paz Oil Company Ltd. (TASE: PZOL), Israel Phoenix Assurance Ltd. (TASE: PHOE), Africa-Israel Housing Ltd. (TASE: AFHS), Darban Investments Ltd. (TASE: DRBN), Danya Cebus Ltd. (TASE: DNYA), Scope Metal Trading and Technical Services Ltd. (TASE: SCOP), Internet Gold Ltd. (Nasdaq; TASE: IGLD), Airport City Ltd. (TASE: ARPT), and Blue Square Real Estate Ltd. (TASE: BLSR). The follows stocks will be relegated to the Mid-Cap 30 Index: First International Bank Ltd. (TASE: FTIN), Fundtech Ltd. (Nasdaq; TASE: FNDT), Ayalon Holding Ltd. (TASE: AYAL), IBI Investment House Ltd. (TASE: IBI), Shamir Optical Industries Ltd. (Nasdaq; TASE: SHMR), Eden Springs (Maynot Eden) Ltd. (TASE: MEYD), Orckit Communications Ltd. (Nasdaq; TASE: ORCT), Electra Consumer Products Ltd. (TASE: ELEK), and Discount Mortgage Bank Ltd. (TASE: DMBK).


Internet Gold will also replace Shamir Optical on the Tel-Tech 15 Index.


Kardan and Bayside Land Corp. Ltd. (Gav Yam) (TASE: BYSD) will join the Real Estate 15 Index, while Amot Investments Ltd. (TASE: AMOT) and Elbit Medical Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) will leave.


With the publication of the updated indices, TASE Senior Vice President and Trading and Clearing Department Manager Dror Shalit said, “The various indices that the TASE calculates and operates play a key role in the Israeli capital market. The TASE raised the threshold conditions for market cap and public holdings in companies for inclusion in the indices will contribute to increasing market liquidity. In the past few weeks, we saw companies work hard to increase the public holdings in them in order to ensure that the stay in the indices or to enter them. This activity underscores the great importance listed companies attribute to the TASE indices.”


Shalit added, “The indices products, especially ETFs, now constitute 20% of the total trading volume in stocks. They demonstrate the importance investors see in the indices. The leading indices also make it possible for foreign investors to invest in the Israeli capital market easily and at low cost, whether through ETFs traded in Tel Aviv, or through international securities traded on foreign stock markets that monitor Israeli indices.”


In the next few days, investment houses are expected to make large-scale transactions in stocks whose place in the indices will change, because of the changes in the compositions of ETFs and derivatives.


The new composition of the indices will be valid until mid-2007, with the next update occurring in late June.