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Israeli companies traded in New York rose to the highest level since October as management changes in the country’s biggest companies led the Bloomberg Israel-US 25 Index to outperform shares in the U.S. and Europe.
The gauge of the largest Israeli companies traded in New York has jumped 6.7 percent this year to the highest since Oct. 28, outperforming the Standard & Poor’s 500 Index’s 1.8 percent gain and the Stoxx Europe 600 Index’s 0.8 percent rise. The TA-25 Index has increased 3.7 percent this year, climbing every day since the start of 2012, the longest winning streak since April after dropping the most since 2008 last year. The benchmark rose 0.9 percent to 1,125.85 at 10:38 a.m. in Tel Aviv.
Teva Pharmaceutical Industries Ltd., the world’s largest maker of generic drugs, said on Jan. 2 that it will replace its chief executive officer, a day after Bank Leumi Le-Israel Ltd.’s CEO said she may step down. Israel Chemicals Ltd. and Partner Communications Co. also announced management changes on Jan. 8. Gas companies surged yesterday after signing a $5 billion agreement to supply gas from the Tamar field.
“If you look at the sectors that led the outperformance, the changes in Teva’s management and the natural-gas contracts that were signed, helped start 2012 in a positive way,” said Ori Licht, the head of research at I.B.I.-Israel Brokerage & Investments Ltd. in Tel Aviv.
The Finance Ministry said yesterday investors demanded almost six times the amount offered of the nation’s first 30- year shekel-denominated bonds. Israel sold 200 million shekels ($52 million) of the notes due 2042 to yield 5.5 percent.
Teva Surges
Teva rose every day this year in New York, climbing 11 percent to $44.89. The company’s Tel Aviv shares advanced 9.1 percent to 167.40 shekels, or the equivalent of $43.67. The $1.37 premium yesterday was the biggest among dually traded companies. The shares gained 2.5 percent to 171.50, or $44.75 in Tel Aviv today.
The Petach Tikva, Israel-based drugmaker said that Bristol- Myers Squibb Co.’s Jeremy Levin will replace Shlomo Yanai as CEO in May. Teva fell 23 percent last year, the most since 2006, as its branded multiple sclerosis medicine Copaxone, faced competition from newer treatments.
“What really affected the market is Teva,” Saar Golan, a trader at Clal Finance Batucha Brokerage Ltd., said by phone from Tel Aviv. “Teva’s gain had a lot to do with the unhappiness with Yanai.”
Partner, Israel’s second-largest mobile phone provider, fell 2.7 percent to $8.78 in New York after dropping 1.5 percent in Tel Aviv to 34.03 shekels, or the equivalent of $8.87, yesterday. The Tel Aviv shares lost 0.2 percent today.
The company’s controlling shareholder Ilan Ben-Dov intends to step down as chairman and a new appointment will be discussed by the board over the next few days, Partner said in a Business Wire statement on Jan. 8.
Ben-Dov
Ben-Dov said on Dec. 28 that he will sell a stake in Partner, after shares dropped more than 50 percent last year, as the government steps up efforts to boost competition in the local cellular market and on mounting concern about his investment company Tao Tsuot Ltd.’s debt problems.
“Investors were asking for a certain premium for Partner because of Ben-Dov,” said Licht. “The fact that he’s taking a step back might be a good thing.”
Bank Leumi, Israel’s largest bank by assets, said on Jan. 1 that Galia Maor will step down as CEO in the second quarter after 16 years in the position. Shares have risen 6 percent since then.
Israel Chemicals pared most of its losses yesterday following the Jan. 8 announcement that Chief Executive Akiva Mozes will retire after 13 years as head of the maker of fertilizer that harvests minerals from the Dead Sea.
Delek Drilling-LP climbed to the highest level since November 2010 after the oil and gas exploration company and its partners in the Tamar natural-gas field signed an agreement to supply gas from the site to Dalia Power Energies Ltd.
Given, Perrigo
The shekel strengthened 0.4 percent versus the dollar to 3.8326.
Israel, whose population of 7.8 million is similar in size to Switzerland’s, has about 60 companies traded on the Nasdaq, the most of any country outside the U.S. after China. It is also home to the largest number of startup companies per capita in the world.
Given Imaging Ltd., the maker of a pill-sized camera to diagnose digestive ailments, rose 2.6 percent to $17.88 after shares in Tel Aviv advanced 1.6 percent to 67.64 shekels, or the equivalent of $17.63. The company said yesterday that it targets revenue of $450 million for 2016, nearly three times the $158 million reported in 2010. The shares climbed 3.8 percent to 70.20 shekels, or $18.32, in Tel Aviv today.
Perrigo Co., the largest U.S. maker of over-the-counter drugs, advanced 0.5 percent to $96.56 yesterday. The Israeli stock gained 0.2 percent to 371.10 shekels, or the equivalent of $96.83, today.
The company signed an agreement to buy all of the assets of Can-Am Care, a privately held Georgia-based distributor of diabetes care products for about $36 million in cash. The acquisition is expected to immediately add to adjusted earnings per share, Perrigo said in a PRNewswire statement yesterday.
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