Shalom Life | August 01, 2015

Sky Diving in TASE

Energy sector pushes the market deep down.

By: Yosef Tastassa

Published: November 14th, 2010 in Business » Israel

Sky Diving in TASE

Energy stocks are shaking

While North American markets take a cool breath during the weekend, the TASE (Tel- Aviv Stock Exchange) is boiling.

The energy sector may be at the end of its Golden Era and the investors are becoming sober after a wild party that brought the sector to imaginative prices.

As we speak, the major companies who invest in oil and natural gas are falling like rocks from the sky. IsramCo (-7.98) percent, Avner (-8.36) percent, Delek Drilling (-9.09) percent, and Ratio (-4.48) per cent.

The sector is heavily and negatively impacted by Prof Eytan Sheshinsky's recommendations. Sheshinsky was nominated by the State of Israel to inspect and recommend on the economic aspects of the Oil & Gas sector.

His recommendations of increasing taxes to 20-60 per cent from future profits were a slap in the face to many investors. Many who oppose Sheshinsky's conclusions say that his recommendations will "dry" all future investments in the sector and will make it too risky and unprofitable.

Noble Energy published a warning with regard to Leviathan. The company said that the market is already behaving as if Leviathan is already a positive discovery. It reminded all of us that it is still under exploration and beside 50 per cent chances of success there are also 50 per cent chances of failure.

Israeli investment houses, such as IBI, say that the sector prices are too high and some companies may face losses in the near future.

Add this data to the not so good news from China, who lost 5.16 per cent on Friday, and the worries about Greece and Ireland and you will get a free sky dive in share value.

Dual stocks

Over 100 TASE companies are also traded in New York markets. Negative results in Tel Aviv will also have negative results in New York tomorrow. As investors always say: "When it rains everybody gets wet."

Dual stocks at focus: Teva (+2.13) per cent, TSEM (-0.56) per cent, CTCH (-3.15) per cent.

Macro data

The consumers' price index for October (Inflation rate) will be published tomorrow. Most analysts and economist expect a 0.2 per cent increase. Higher data may be bad to the stock market as it may cause an increase in the Central Bank interest rates by 0.25 per cent.

Investors’ behavior

These are times when the risks are higher than opportunities. The markets are very unstable and as we said before, we may see a very red November in the global markets.

EXCLUSIVE: JSwipe Founder Opens Up About JDate Lawsuit EXCLUSIVE: JSwipe Founder Opens Up About JDate Lawsuit TrendingThe Canadian Army is Acquiring Israel's Iron Dome Technology The Canadian Army is Acquiring Israel's Iron Dome Technology TrendingTel Aviv Professor Says Newly Discovered Earth-Like Planet is too Far Away to Understand Tel Aviv Professor Says Newly Discovered Earth-Like Planet is too Far Away to Understand Trending
 

WATCH: Jon Stewart Addresses Uproar over his "Secret" Meeting with President Obama

July 30, 2015 | By Daina Goldfinger
WATCH: Jon Stewart Addresses Uproar over his "Secret" Meeting with President Obama

"Something is not a secret just because you don't know about it"

Read More

Canadian Couple: Killing Young Jews Will Save Them from Hell

July 30, 2015 | By B. Shane Morganstein
Canadian Couple: Killing Young Jews Will Save Them from Hell

The couple, convicted of trying to bomb the British Columbia Legislature, hoped to save Jews from growing up and going to "eternal hell"

Read More

WATCH: Viral Video of Israeli Father Shaving his Beard for First Time in 14 Years

July 30, 2015 | By B. Shane Morganstein
WATCH: Viral Video of Israeli Father Shaving his Beard for First Time in 14 Years

People are going crazy for this family's reaction to a man named Mooki shaving his beard

Read More

EXCLUSIVE: JSwipe Founder Opens Up About JDate Lawsuit

July 30, 2015 | By B. Shane Morganstein & Daniel Koren
EXCLUSIVE: JSwipe Founder Opens Up About JDate Lawsuit

"We believe their claims lack merit and we intend to defend our rights vigorously," says David Yarus

Read More

University of Toronto Students Fight Back Against BDS

July 30, 2015 | By Adir Krafman
University of Toronto Students Fight Back Against BDS

U of T Students' Union Board of Directors overwhelmingly rejects creation of BDS committee

Read More

Shaw Festival Review: The Twelve-Pound Look

July 29, 2015 | By Hermine Steinberg
Shaw Festival Review: The Twelve-Pound Look

J.M Barrie's 'The Twelve-Pound Look' is a witty and poignant portrayal of marriage during the Edwardian Era.

Read More

Israeli Archaeologists Discover Remnants of Great Historical Synagogue

July 29, 2015 | By B. Shane Morganstein
Israeli Archaeologists Discover Remnants of Great Historical Synagogue

Using new technology, Israeli archaeologists have unearthed what may be the Great Synagogue of Vilna

Read More

WATCH: Trailer for New Seth Rogen Christmas Movie

July 29, 2015 | By B. Shane Morganstein
WATCH: Trailer for New Seth Rogen Christmas Movie

'The Night Before' "was made by Jews and opens on Thanksgiving"

Read More

More Headlines