February data as transferred to FUNDER from the stock exchange show that there are also nice fundraising this month, but there has been a decline in public purchases of mutual funds that invest in shares and bonds in Tel Aviv and totaled NIS 2.8 billion together. NIS 3.6 billion net in the previous month. Most of the purchases, both this month and the previous month, were made in bond funds.
Acquisitions of funds investing abroad also moderated and amounted to NIS 900 million in February, a continuation of acquisitions of NIS 1.4 billion net in the previous month.
Sales of mutual funds by the public increased and amounted to NIS 1 billion, after net sales of NIS 0.6 billion in the previous month.
ETFs
At the end of February, 533 basket funds with a value of NIS 93.6 billion were traded in mutual funds.
This month, 6 new mutual funds with a combined value of about NIS 60 million were listed for trading:
• The first two mutual funds on the Tel Aviv-Cleantech index launched in November 2020 and listed for trading by Harel and Tachlit.
• One fund on the index of corporate bonds on the stock exchange – Tel Bond – linked A, registered by Migdal.
• Three mutual funds on an international stock index – Kesem listed 2 mutual funds on the CSI300 index and the S&P New China Sectors index, and Migdal listed a mutual fund on the Bluestar China Internet Software index.
The market value of the mutual funds at the end of February 2021 was NIS 900 million higher than the previous month. An increase of NIS 1.4 billion in the value of mutual funds on stock indices abroad was partially offset by a decrease of NIS 400 million in the value of mutual funds on stock indices in Tel Aviv. An increase of NIS 1 billion in the value of mutual funds on international stock indices, originating Rising stock indices.
Stability in the value of mutual funds on corporate bond indices and government bonds.
Trading Summary
The trade in February was conducted against the background of a gradual slow exit of the economy from the third quarantine, following encouraging signs of a decrease in the rate of infection with the virus, while at the same time the rapid vaccination of the population continued in the country while expanding to a younger age group.
Despite the vaccine and signs encouraging teachers to retreat in the spread of the virus in the country, the economy is still in an economic crisis as evidenced by data published this month by the CBS, including:
The proportion of employed persons who are temporarily absent from work due to the corona + the unemployed, increased from about 14.2% in the first half of January 2021, to about 16.3% in the second half of the month,
When the third closure tightened towards the second half of the month contributed to this;
Gross domestic product at constant prices in 2020 decreased by 2.4%, after increases of about 3.5% in each of the previous two years. The decline in GDP in 2020 caused by the corona crisis is the highest since 1950 and it reflects the continuing constraints in light of the situation;
The consumer price index decreased by 0.1% in January 2021, after falling by 0.7% in the summary of 2020. As a result, the Bank of Israel left the interest rate in the economy unchanged at a low of 0.1%.
Trading on the Tel Aviv Stock Exchange in February was characterized by a mixed trend in the leading stock indices, following the positive trading trend in the previous month.
The Tel Aviv-35 index fell by about 1.5% this month, after rising by about 5% in the previous month.
At the date of the semi-annual update of the stock indices, which took place on February 7, 2121, OPC Energy and the Ashtrom Group shares were added to the Tel Aviv-35 index. These shares replaced the APAP that was deducted from the index in early January and the Matrix that was deducted from the index The update.
The TA-90 and TA-SME60 indices rose by 2% and 1.5%, respectively, compared with a 3% increase in the S&P 500 and Dow Jones indices representing the “traditional” US economy, and an average increase. Of about 4% in leading stock exchanges in Europe.
A mixed trend characterized most of the industry indices: this month, the TA oil and gas and TA-Insurance Plus indices rose by about 15% and 5%, respectively. The Tel Aviv-Biomed index, which jumped by about 27% in the previous month, recorded a moderate increase of about 2% this month. On the other hand, the infrastructure and energy index fell by about 6%, and the Tel Aviv real estate index from Israel yielded by about 2%.
On February 7, 2021, a new stock index was launched – the Tel Aviv-Cannabis Index, which includes nine companies with a total market value of approximately NIS 2 billion.
The daily turnover in the stock market, including mutual funds, amounted to NIS 1.9 billion in February, although 8% lower than in the previous month but similar to the average turnover in 2020. On February 4, on the eve of the semi-annual update of the stock indices, a turnover of approx. NIS 4.4 billion on the stock exchange – about NIS 3.0 billion, of which, at the closing stage.
Awakening was recorded this month in the Tel Aviv stock market, following a trend from the previous month, and they are expected to amount to NIS 2.6 billion. About NIS 1.9 billion was raised in 19 public offerings and four rights issues.
Initial issues
The wave of initial public offerings intensified – when 13 new companies, including 9 high-tech companies, made their initial public offering (IPO) in the stock market this month and raised about NIS 1.5 billion, following
To 7 new issuers (including 5 high-tech companies) recruited in the previous month.
It should be noted that most of the initial public offerings were also made this month by way of a non-uniform offer to institutional investors (Book Building) and in February about NIS 1.3 billion was raised in this way, an amount that constitutes
About 96% of the amount raised by the 13 new issuers this month.
This month, the introduction of an activity was completed, for the third time this year, for a trading company: The activity of Bio Milk, a company that develops technology for milk production in the laboratory, was introduced into Fantasy Network.
In addition, 23 companies, including 17 high-tech companies and partnerships, have published a prospectus for completion, in which they will raise up to NIS 2.5 billion in initial public offerings (IPOs). Among the companies:
• Dalia Energy – a power plant that produces electricity using natural gas – which is expected to raise up to NIS 313 million, according to a company value of NIS 4,040 million after the IPO.
• Five R&D partnerships – joining seven R&D partnerships traded on the stock exchange, including Kline and Liu, which is expected to raise up to NIS 90 million – the highest amount to be raised by R&D partnerships to date.
Issues in existing companies
Among the veteran issuers this month, El Al Airlines stood out, raising NIS 250 million by issuing warrants for shares to the public.
This month, 10 private allotments of shares worth NIS 500 million were made. The size of a private allocation made by OPC Energy in the amount of NIS 350 million to classified investors stood out.
The dual companies raised about NIS 1 billion abroad this month. Most of the amount, about NIS 0.8 billion, was raised in five public offerings in the United States. The size of the offerings made by the biomed companies Itamar Medical and Analbaks in the amount of NIS 0.26 and NIS 0.17 billion, respectively, stood out.
The shares of the technology company Rada, whose shares are traded on the Nasdaq Stock Exchange (symbol: RADA), also began trading in Tel Aviv on February 2, 2021. As part of the double listing. The company is engaged in the development, production and marketing of ground and aircraft radar systems. NIS 1.4 billion.
The company’s shares are expected to join the leading stock exchange indices at the beginning of April 2021: TA-90, TA-125, TA-125 Clean Climate, TA-SME150, TA Global-Blotech, TA-Tech-Illit , TA-Technology, and TA-Industry.
The communications company Cellcom imitates its shares from the US trading on the NYSE (symbol: CEL) and they continue to trade in Tel Aviv. Today, 50 dual companies are traded in Tel Aviv.
In the bond market, price declines were recorded in February in most types of bonds. The NIS-denominated government bonds at fixed interest rates fell by about 2% this month. The yield to maturity of 10-year shekel government bonds rose from about 0.8% at the end of January, to about 1.2% at the end of February 2021, similar to the yield to maturity of 10-year US government bonds, which rose from about 1.1% at the end. January to about 1.4% at the end of February 2021.
The bond market
An increase in bond yields to the maturity of these bonds reflects investors’ expectations of an increase in the inflation rate and, consequently, an increase in the interest rate.
CPI-linked government bonds also fell by about 1.5%, while index-linked corporate bonds rose by half a percent.
This month, foreign currency-linked corporate bonds stood out, rising by 1.6% following a 2.9% increase in the previous month, due to the fluctuation in the dollar exchange rate relative to the shekel affected by the dollar purchase plan announced by the Bank of Israel in the previous month. By the Fed.
In the bond market, the daily turnover amounted to NIS 4.7 billion, 4% higher than in the previous month and 13% higher than the average turnover last year. The entire increase is due to index-linked government bonds, whose daily turnover amounted to NIS 1.3 billion in February, compared with NIS 1 billion in the previous month.
While in the short term, the daily turnover decreased in February and amounted to NIS 330 million, 33% lower than in the previous month and 27% lower than the average turnover last year. .
Raisings in the Tel Aviv bond market by the Treasury in February amounted to NIS 14.3 billion, similar to the raisings in the previous month. About 77% of the amount raised this month was made through fixed-rate shekel bonds, and about 23% of the amount raised through bonds. H index-linked.
Raises in public offerings and private allocations in the Tel Aviv bond market by the business sector are expected to total NIS 4.1 billion in February. NIS 3.4 billion was raised by the real estate sector, and NIS 0.7 billion was raised by the financial sector.
This month, about NIS 3.1 billion was raised in 11 public offerings. About NIS 1.1 billion was raised in the largest issue this year by the government water company – Mekorot. The company raised the amount by expanding two series of index-linked bonds in the AAA rating “Maalot”:
Approximately NIS 956 million was raised in index-linked bonds, 14.9 years ago, a yield to maturity of 0.8%.
Approximately NIS 148 million was raised in index-linked bonds, a 4.9-year maturity, and a yield to maturity (-0.4%).
The company is expected to redeem tradable bonds in the amount of NIS 670 million in the years 2022-2021.
About NIS 0.8 billion of them were raised by five real estate companies, including an IPO carried out by the income-producing real estate company in Eretz Amot, which raised NIS 450 million in the issuance of a new series of index-linked bonds, 9-year maturity, 0.92 interest. %, In the AA “Maalot” and Aa2 “Midroog” rankings. The company is expected to have marketable bond redemptions in the amount of NIS 1 billion in the years 2022-2021.
This month, NIS 1.0 billion was raised in six private bond allocations to investors classified by real estate companies. NIS 306 million was raised in an allotment of index-linked bonds made by the non-bank direct credit credit company, and NIS 263 million. Raised in an allotment of shekel bonds by the Fattal Hotel Company.
After a one-year hiatus, in February an issuance of bonds structured by Harel A tradable deposit that raised NIS 221 million in the public offering of structured bonds backed by deposits in local banks. The bonds issued in shekels at variable interest rates, 0.1 year MHM, yield to maturity 0.3%, rated Aaa by Midroog.
Derivatives market
The derivatives market was characterized by a decrease in trading volumes compared to the previous month.
The daily trading volume of options on the TA-35 index (monthly and weekly) decreased, similar to the trend in the stock market and the effect of the decline in volatility, and amounted to 94,000 units in February compared to 117,000 units in the previous month. January to about 22 points at the end of February. It should be noted that the US volatility index – the VIX S&P – also fell from about 33 points at the end of January to about 28 points at the end of February.
The daily trading volume in dollar options in February amounted to about 58,000 units, about 10% lower than the turnover in the previous month. Trading was affected by the volatility of the dollar, which fell by about 0.8% while volatility and reached a rate of 3.264 at the end of the month.