Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
Positive lock in the stock market. The TA 35 index registered an increase of about 1.7%, the TA 125 climbed by 1.3%, and the TA 90 index rose by about 0.6%. The banks index jumped by 3%, after Discount and Mizrachi Tefahot reported record profits The trading turnover amounted to approximately NIS 2.1 billion.
The share ofinternational jumped by about 5%, and the bank added about NIS 700 million to its value; discount jumped by about 4%, so the bank added close to a billion shekels to its value; and stock Mizrahi Bank increased by 4.4%, and the value of the bank increased by approximately NIS 1.4 billion.
Also prominent in the increases were Veridis, Ormed, Mitronics , Electra Shapir, Delek Group, Phoebe andHanan Mor .
On the other hand, sharp declines were recorded among other things Delta Galil Tadiran (which published reports in the morning), Liveperson, Ofco, Fox and Ista
In the government bond market, declines of up to 0.7% were recorded in long-term government shekels, and the corporate Tel Bond indices fell by 0.3%-0.4%.
The gains in the stock market are getting stronger. The Tel Aviv 35 index rises by 1.6%, the Tel Aviv 125 index climbs by 1.3% and the Tel Aviv 90 index advances by about 0.6%. The banks index jumps by more than 2%. The trading turnover amounts to about NIS 1.33 billion.
Sharp increases are recorded among other things Radish , The training of the settlement , Shafir Engineering , Ormed , mega light in variety, discount andBig .
The gains in the stock market continue to strengthen, led by bank stocks. The TA 35 index rises by 1.1% and the TA 125 climbs by 0.8%. The Tel Aviv 90 index is trading around the opening level, with Delta and Tidiran at the bottom, which dive after the reports and pull down.
The turnover amounts to about NIS 900 million, when Mitronics Consolidates the second cycle in its scope (after Bank Hapoalim) and jumps by 5%, following the reports it published yesterday after the end of trading. Revenues decreased by about 8% and amounted to NIS 524.4 million in the first quarter and the net profit was cut by 23% and amounted to NIS 88.4 million, with the decrease being explained, among other things, by the increase in financing expenses due to the increase in interest as well as a cut in tax expenses.
Terminal X reported a slight increase in revenues for the first quarter, which amounted to NIS 92.7 million (compared to NIS 90.6 million in the corresponding quarter). At the same time, the quarterly loss grew by 23% to NIS 3.2 million, and its share of revenues was 3.5%.
The increase of the Tel Aviv 35 index strengthens to about 0.9%, the Tel Aviv 90 index moved to an increase of about 0.2%. The bank index jumps by 1.8%. The trading turnover amounts to NIS 615 million, Hapoalim concentrates the highest turnover and climbs by about 1%.
Delta Galil Dropping after the reports she published last night. Sales in the first quarter amounted to 442 million dollars, a decrease compared to 483 million in the corresponding period, and the total profit attributed to the shareholders amounted to only 2.1 million dollars – compared to 18.9 million dollars in the corresponding quarter.
also Tadiran Group Losing height following the weak reports it published this morning. Revenues in the quarter decreased by about 14% and amounted to NIS 435 million (the company attributes the decrease to the decrease in the volume of sales in the consumer goods and energy sectors). At the same time, the profit attributed to the shareholders increased by 13% to NIS 43.1 million.
Another bank that published its results this morning is the international , when the group’s net profit amounted to NIS 631 million, an increase of 96% relative to the corresponding period last year. The return on capital of the international was 23.6% in the first quarter, the highest in the system. Total interest income jumped to NIS 1.28 billion, an increase of 71% compared to the corresponding quarter last year. The international company, whose regular policy was to distribute 50% of profits to shareholders, this time reduced the rate to 35% (still the highest rate in the system), and will distribute NIS 220 million.
Immediately after the bank published its reports, CEO Samdar Barber Tsadik announced her desire to leave after 16 years in the position. A date for the end of the tenure has not yet been set.
The two major banks, Leumi and Po’aleim, will publish the reports next Tuesday.
The Tel Aviv 90 index erased the declines and traded around the opening level. The Tel Aviv 35 index rose 0.6%.
Among the sectoral indices, the banks index which rises 1.6%, the biomed index which climbs 1.7% and the finance index which strengthens by 1.3% stand out. On the negative side, the real estate index loses 0.6% and the construction index retreats 0.5%.
Trading on the stock exchange opened with a mixed trend. The Tel Aviv 35 index rises by about 0.5% led by the banks (with Discount and Mizrahi climbing after the reports, which are detailed in previous updates, and jump the Bank Index by 1.5%), while the Tel Aviv 90 trades in a slight decline.
Ormed (thanks to strong positive arbitrage), Cellcom, Partner and Paz Neft register other notable gains. in contrast, Tadiran Group was cut by 6% and so on Mitronics and Liveperson.
In foreign exchange, the dollar weakened by 0.2% to NIS 3.65 and the euro decreased by 0.5% to NIS 3.96.
group flash reported a record in revenues since 2018, after they totaled NIS 2.31 billion in the first quarter (an increase of 2.4% compared to last year). The net profit was NIS 311 million (an increase of 10.3%), while a 0.3% decrease was recorded in the adjusted net profit (excluding other operating expenses/income, one-time losses/gains from depreciation/increase in value and expenses for share-based compensation), which amounted to approximately 321 a million shekels.
cellcom reported revenues of NIS 1.08 billion in the first quarter (a slight increase compared to NIS 1.05 billion in the corresponding quarter). The profit for the period jumped from NIS 28 million in the corresponding quarter last year to NIS 43 million.
Mizrahi Bank Also published the first quarter reports: recorded a net profit of NIS 1.36 billion, an increase of 18.5% compared to the corresponding quarter. The return on capital was 22.4% (compared to 21.9% in the corresponding quarter and 20.1% in 2022 as a whole). A dividend of NIS 410.1 million will be distributed – 30% of the first quarter’s profits. Income from interest amounted to NIS 3.15 billion, a jump of 47% compared to last year and 6.6% compared to the end of 2022.
5 things you should know before opening the trade
1. The stock markets
A mixed opening is expected in the stock market after a negative trading day yesterday, in response to the consumer price index which surprised negatively with a double rate increase compared to analysts’ forecasts. The TA 35 index shed approximately 0.3%, the TA 125 decreased by approximately 0.6% and the TA 90 decreased by 1.3%. The construction index fell to nearly 4.5% while the banking index stood out favorably with a 1% increase.
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Bank discount Released Q1 results this morning. Net interest income jumped by more than 50% thanks to the increase in interest rates in the economy, from NIS 1.8 billion in the corresponding quarter last year to NIS 2.7 billion. The rate of return on capital was 20.1% (compared to 18.3% in the corresponding quarter). The net profit attributed to the shareholders increased by 29%, from NIS 983 million to NIS 1.27 billion. For the sake of comparison, in 2022 as a whole, the net profit was NIS 3.5 billion. The bank reported that it is increasing the dividend payment to 30% of the net profit, which will amount to NIS 381 million for the first quarter.
On Wall Street, the contracts register slight increases of up to 0.2%, after yesterday’s negative lock. GodThe Nasdaq shed 0.2%, the S&P 500 lost 0.6% of its value and the Dow Jones fell 1%.
As for Israeliness on Wall Street, Liveperson A return with a high negative arbitrage gap of 6.3% and will lose height in Tel Aviv as well, while in contrast Ormed Leap in light of a positive gap of almost 15%.
In Asia, the Japanese Nikkei index stands out with an increase of 0.8%, while in China, Hong Kong and Australia the trend is negative and decreases of up to 0.5% are recorded. The Taiwanese flagship index also registered an increase against the trend and climbed 1.4%.
2. The bond markets
In the local bond market, sharp declines of up to 1.4% were recorded yesterday in the long-term shekel government bond sector, in response to the consumer price index published on Monday, and the indices traded in a mixed trend. The corporate Tel Bond indices recorded increases of 0.2%-0.1%. The bond yield The 10-year government bond stands at 3.70% this morning.
Only slight fluctuations are currently registered in the trading of US government bonds. The 10-year bond yield weakens by 2 points to 3.52% and the two-year bond yield decreases by a point to 4.01%.
3. The commodity and currency markets
In the foreign exchange market, the shekel strengthened this morning against the leading currencies, after increases of 0.3%-0.6% in the representative rates of the dollar, the euro and the pound sterling yesterday. The dollar retreated by about 0.2% and traded around 3.65 shekels, the euro fell by about 0.4% and traded around 3.97 shekels and the pound dropped by 0.6% to the level of 4.56 shekels.
In the commodity market, the prices of crude oil contracts are registering small increases. The price of a barrel of American oil was 70.9 dollars and the price of Brent oil was 75.1 dollars per barrel. The price of gold rises by about 0.2% to the level of 1,992 dollars per ounce.
In the cryptocurrency trading arena the atmosphere is calm. Bitcoin is stable around $27,000 and Ethereum is up 0.6% to $1,826. The Ripple currency stands out for the better, jumping by 8% to 45 cents. Recall that at its peak, in April 2021, the currency crossed the $1.5 mark.
Positive growth figures were published in Japan this morning: GDP in the first quarter of the year rose by 0.4%, above the forecasts that predicted an increase of 0.1%, so that the annual growth rate was 1.6% – more than double the estimates for growth of 0.7%. The inflation rate derived from GDP C stood at 2.1%, a tenth of a percent higher than expected.
At 12:00 (Israel time) the consumer price index in the Eurozone will be published, the second figure following the preliminary index published at the beginning of May. The forecasts are for a monthly increase of 0.7% in the normal index and of 1% in the core index that does not include energy and food prices, so that the annual inflation rate will be 7% overall and 5.6% in the core index.
Later in the day, data on construction starts in the US will be published, as well as the weekly oil inventory. At 19:00 in the evening, the growth figure in Russia will be published, where GDP is expected to drop by 3% in the first quarter (annual rate), against the background of the ongoing war with Ukraine.
Ofer Klein, head of the economics and research division at Harel Insurance and Finance, notes in his weekly review that the price index for April was particularly high, when it is possible to attribute about half of the increase to vacation prices in Israel and abroad, which were at a double-digit rate, this against the background of the devaluation of the shekel alongside the high demand for vacations during Passover. “Our initial forecast is for a 0.6% increase in the May index led by the food section, along with a seasonal increase in fruit and clothing prices,” Klein estimates.
Harel also points out that Israel is nearing the end of the interest rate hike process in Israel, but it won’t necessarily be as early as next week. “Inflation in the last 12 months remained at 5%, but in our estimation it will start to decrease in the coming months in light of the ‘exit’ of the higher indices from last year from the annual calculation. However, in our estimation, inflation will not return to the upper limit of the target this year.
“This forecast, along with the upward surprise in the index and surprisingly good data also from the labor market as the unemployment rate continued to fall to 3.6% in April (seasonally adjusted data), support that the Bank of Israel will raise the interest rate by another quarter of a percentage point this coming Monday. Regarding the continuation of the process Raising the interest rate even after May (next decision in July), we do not rule out another increase in view of the stubbornness of inflation – something that is not priced in the capital market,” concludes Klein.