Tuesday, September 16, 2008
TA Stock Market Takes Hit From US Woes
The world is truly connected, and the failure of one becomes the pain of all. The US is a big economic powerhouse. One can say, “They made mistakes, they did the wrong thing!” but this does not help.
Weren’t these people making a lot of money off of the “mistakes” and “wrong things” that the US market did? And now they complain?
We’ll hope this all works itself out in the end. It will, one way or another . . .
Last update - 13:51 16/09/2008
TA stocks slip in Wall Street's shadow, Bank Hapoalim drops 6.8%, Delek Group plunges 7.8%
By Rotem Sela and Haaretz Service
Stocks traded on the Tel Aviv Stock Exchange opened sharply lower on Tuesday, rocked by the collapse of Lehman Brothers and the worst share price losses on Wall Street since the Twin Towers attacks seven years ago.
The banking sector was hit particularly hard, with Bank Hapoalim sliding 6.8 percent in heavy trading. Bank Hapoalim's exposure to Lehman Brothers is believed to be the highest of Israel's major banks. Bank
The technology sector was also badly shaken, with the Tel-Tech index down 4.7 percent by afternoon.
Other shares jolted by the world crisis were Delek group, which plunged 7.8 percent and Africa Israel, down 7.4 percent.
The Tel Aviv 100 index was down 3.4 percent and opened down 2.7 percent, and the Maof, 2.4.
The U.S. dollar also lost ground vis a vis the shekel, losing 1.4 percent to trade at NIS 3.54.
Defense Minister and Labor Party Chairman Ehud Barak was quoted Tuesday as saying that Israel could be facing a "financial tsunami" and a serious recession.
On Monday, Bank Hapoalim announced that its exposure to the Lehman Brothers totaled about $109 million.
Although many institutions have yet to release figures on exposure to Lehman, Hapoalim and Bank Leumi are believed to have the largest in the Israeli banking system.
As share prices fell on Tuesday, Bank Leumi announced that it holds a total of $88 million in bonds and other financial instruments issued by Lehman Brothers.
By mid-afternoon, Leumi shares had lost 2.3 percent.
Israel's central bank has a relatively small exposure of about $4 million to Lehman Brothers.