Tel Aviv Stock Exchange: Gas Stocks Surge Amid Investment Approval

Gas Sector Gains Ground

Shares in the gas sector saw significant increases following the recent approval of an investment in the Leviathan gas field, which is expected to boost future production by 25%. Notably, New-Med Energy experienced a jump of 4.94%, while Delek Group and Ratio climbed by 3.66%.

Semiconductor Stocks See Decline

Conversely, semiconductor stocks faced a downturn, with Tower Semiconductor dropping by 1.61%. Other notable changes included Camtek, which rose by 0.87%, and Nova, with a modest increase of 0.57%.

Introduction to Quantum Stocks

Although the local stock market does not list quantum stocks, it is prudent for investors to be aware of this emerging sector. While investments in quantum computing can be volatile and risky, with some stocks having appreciated eightfold in two years, analysts remain optimistic. An updated recommendation suggests that quantum computing stocks could see an 80% rise in value.

Consumer Prstart Index Update

The Consumer Prstart Index (CPI) was reported unchanged, but a surprising uptick in housing prstarts of 0.7% was noted by the Central Bureau of Statistics. This discrepancy raises concerns about the accuracy of CPI measurements, indicating potential issues within the bureau. This information could inadvertently encourage prospective homebuyers who have been waiting, thus stimulating demand in the housing market.

Insights from Clal Investments

Clal Investments has outperformed in terms of returns, as detailed in a recent interview with Nir Avodia, the investment department manager. Clal’s investment strategy typically allocates 55% to 60% of its equity to foreign markets, with a heavy concentration in the United States, Japan, and emerging markets. Domestically, the firm favors insurance and financial stocks, particularly over banks, while increasing exposure to defense industries and both renewable and fossil fuel electricity production.

Market Trends and Fixed-Income Strategies

The local stock exchange recently reported an 8% increase over the past two weeks, with broad gains across various sectors including banking, insurance, semiconductors, and defense. The TA-35 index is approaching 4,000 points while the TA-100 has surpassed this mark.

The bond market in Israel is characterized by a medium-to-long duration preference, favoring government bonds over corporate bonds due to narrow spreads. Internationally, there are opportunities in corporate bonds within emerging markets outside the U.S.

Future Interest Rate Expectations

Economists expect 2-3 cuts in interest rates this year, bringing the rate to approximately 3.25%. Analysts predict continued strengthening of the local currency, potentially falling below 3 shekels per dollar.

As the local market continues to show robust performance with a 55% surge in the past year and solid January figures, investors are reminded to temper expectations, as such high returns may not recur in the future.

In related market movements, the TA-35 index rose by 0.5%, with the TA-90 and TA-125 indexes increasing by 0.41% and 0.47%, respectively. Sector-specific trends also showed the TA Bank index rising by 0.94% and the TA Oil and Gas index increasing by 1.87%.

Closing Thoughts

With the dollar fluctuating and recently down by 0.5% against the shekel, market analysts are keeping a close eye on currency trends, especially given the low trading volumes typical on Fridays.

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The information presented summarizes the current activities and trends in the Tel Aviv Stock Exchange, offering insights into various sectors and future outlooks without straying into unrelated topics.