By the middle of the trading day the leading indices had already shown increases of 1.2%. The dollar continued to weaken against the shekel and reached a 24-year low, reaching NIS 3,236 to the dollar, despite the Bank of Israel’s intervention in trading.
A week before the end of the civil year, the Tel Aviv Stock Exchange is already summing up the year and saying that despite the corona, it was a record year on the stock exchange. No less than 27 companies were issued this year on the Tel Aviv Stock Exchange – a record of 13 years. Eight of them were issued at a value higher than one billion shekels. The high-tech sector has strengthened significantly this year, which is also reflected in an all-time record number – 19 new high-tech companies issued.
Further evidence of the strengthening of the high-tech sector at the expense of other sectors is the entry of six high-tech companies into the Tel Aviv 35 flagship index. Similar to the rise in the Nasdaq Technology Index in New York (42%). These indices are also leading in an increase of about 123% and about 195%, respectively, in the last five years, 2020-2016.
Two new players
Trading in the stock market was characterized by urban trading volumes and amounted to approximately NIS 1.9 billion per day, an increase of approximately 43% of the average turnover in 2019 and of approximately 36% compared to the average in the previous three years (2019-2017). Trade was characterized by high volatility, and in March – the peak of the crisis in the markets – the average daily turnover amounted to NIS 2.9 billion, while in May-December the average daily turnover amounted to NIS 1.7 billion.
The volume of capital raised in the stock market amounted to NIS 16.3 billion this year, compared with NIS 13.3 billion in 2019. Total public offerings reached NIS 12 billion, 45% higher than the previous year. In total, more than 225 issues and private placements were registered this year, compared with 158 in 2019. The stock exchange currently has 454 companies listed with a total market value of approximately NIS 819 billion.
In 2020, close to 135,000 new accounts were opened, compared with less than 100,000 new accounts in 2019, with a jump of about 150% in the number of accounts opened in investment houses.
Two new players announced their joining the stock exchange this year: one is the first digital bank that will allow its clients to trade on the Tel Aviv Stock Exchange in securities, including mutual funds, as well as participate in issues.
The digital bank also intends to join as a member of the stock exchange clearing house. The other is Barak Capital who joined as a Nostro member.
Reasons for optimism
In 2020, five new indices were launched: two green stock indices – the Tel Aviv-Lintech index, which consists of shares included in the clean-tech sub-industry in the technology industry, which currently includes 12 shares worth about NIS 37 billion, TA 125, excluding shares of corporations participating in the production chain of fossil fuels. The index includes 112 shares worth about NIS 595 billion (including 32 included in the Tel Aviv 35 index).
The stock exchange’s CEO, Itai Ben-Ze’ev, commented on the data: “This year was a significant breakthrough in the connection between the stock exchange and local high-tech, with a record number of new entrants in the field of technology and dozens of other companies on the way. “Our strategic plan, which we have been implementing in recent years, has laid an excellent foundation for the stock exchange to better reflect the success of Israeli high-tech and to be a real home for these companies.”
According to Ben Zeev, “This year, more than ever, the stock exchange has given back and allowed local companies from a variety of fields to continue to raise and grow, with a lot of interest from local investors, alongside global players. As the home of the Israeli economy, we believe “Institutional and the general public, and optimistic about continued growth next year as well.”
Ben-Ze’ev also referred to publications about large issues of Israeli technology companies in the United States, noting that the stock exchange is working to encourage such companies to double listing in Israel as well. Special also in Tel Aviv. The dual companies continue to operate in accordance with the regulations of the Foreign Securities Law and the Foreign Exchange, without additional requirements from the Israeli regulator.
“Good for the whole public”
The stock exchange emphasizes that the dual listing process is easy, simple, fast and does not involve significant costs. “There is no reason why companies that have grown up here and have a significant center of activity in Israel will not join the Israeli Stock Exchange,” says the TASE CEO. “It is good for companies and it is good for the entire public, proud of the Israeli minds and entrepreneurship in the world.
“Today, more than 30% of all dual stock trading takes place in Tel Aviv. This is a significant lesson, which sharpens the advantages that local trade has alongside the trade conducted abroad, “Ben Zeev concludes.