Annual Review

MAIN INDICATORS 2004-2006
THE TEL-AVIV STOCK EXCHANGE
2004
2005
2006
24.6%
21.0%
19.4%
19.5%
7.1%
24.7%
21.1%
(13.5%)
32.1%
24.3%
(0.9%)
22.6%
22.0%
(3.3%)
81.3%
15.3%
14.0%
147
214
140
153
24
223
298
151
258
27
326
384
179
305
30
3.6
1.6
4.1
4.5
2.3
3.2
2.7
1.2
10.1
4.0
9.6
2.7
0.7
10.8
5.6
92.1
58.7
10.8
17.5
578
122.6
56.8
22.9
18.9
584
161.4
62..8
36.1
20.9
606
ANNUAL DOLLAR YIELDS
TA-25 Index
TA-100 Index
Tel-tech 15 Index
Real Estate-15 Index
General Share Index
General Bond Index
DAILY TURNOVER (US $ millions)
Shares and Convertibles
Bonds
Treasury Bills
TA-25 Index Options (thousands of contracts)
Dollar Option (thousands of contracts)
CAPITAL RAISED (US $ billions)
Shares and Convertibles
Thereof: Capital raised in Israel
Government Bonds - Net
Non Government Bonds
Thereof: Issues to Institutionals
MARKET CAPITALIZATION (US $ billions)
Shares and Convertibles
Government Bonds
Non Government Bonds
Treasury Bills
NUMBER OF LISTED COMPANIES
MAJOR WORLD STOCK EXCHANGES' INDICES
2004
2005
2006
3.1%
8.6%
15.7%
16.1%
12.2%
26.7%
21.0%
(0.6%)
1.5%
4.4%
10.2%
22.5%
28.5%
21.1%
16.3%
6.8%
25.9%
35.8%
5.5%
28.0%
22.0%
ANNUAL DOLLAR YIELDS
DOW-JONES Index
NASDAQ 100 Index
FTSE 100 Index
DAX Index
NIKKEI 225 Index
MSCI EM Index
TA-100 Index
Nothing contained herein should be construed as investment advice, either on behalf of particular securities or overall investment
strategies. Further, while all information contained herein is obtained from sources believed to be accurate and reliable, TASE is not
responsible for any errors or omissions. TASE makes no representations and disclaims all express, implied, and statutory warranties
of any kind, including warranties as to accuracy, timeliness, completeness, merchantability, or fitness for any particular purpose.
For further information, visit our website at: www.tase.co.il. You are also welcome to contact TASE Marketing and
Communications Unit Tel: (972) 3 567-7405/6 Fax: (972) 3 510-5376 E-Mail: info@tase.co.il
ANNUAL REVIEW 2006
YEAR-END SUMMARY
The eighth decade of share trading in Tel Aviv started off on the right foot;
2006 will be remembered as one of the best years for Israel’s economy
Israel’s economic growth in 2006 was high, prices remained stable
and the country’s budgetary framework maintained its integrity,
despite the month-long war in Lebanon during the summer.
Export industries continued to lead economic growth; the
business sector output rose by close to 6 percent and according
to many estimates, this rapid growth will continue during 2007
as well. Positive developments in the economy allowed the
Bank of Israel to lower interest rates during the last quarter
after raising them consistently during previous quarters.
Positive macro-economic developments provided fertile ground
for increased profitability in the business sector and a continual
rise in share value, 2006 being the fourth year in succession in
which share prices rose.
Developments in the Israeli stock market were additionally
facilitated by the positive trends in the world economy and the
major overseas stock exchanges. In 2006, the business sector
also raised substantial amounts through bond issues.
It is well known that during 2003 to 2005, three critical years
in which the country was recovering from both recession and
the Intifada, the TA-100 index rose by 200 percent. Improved
economic conditions throughout 2006 led to an additional rise
of 22 percent. It should be noted that in Israeli currency (Shekel)
terms share prices rose only by 12 percent and the strengthening
of the local currency verses the US Dollar added 8 percent more
to the return for global investors.
Along with the rise in share prices, the turnover in traded shares
also rose by 45 percent and in options on the TA-25 index by 24
percent. However, the heavy investment in computerization,
made in 2005 and 2006, made it possible to handle the large
volume of trade even on peak days, when turnovers reached
such levels as NIS 4.4 billion for shares, NIS 3.1 billion for bonds,
and 818,000 contracts for options. Both these trends brought
about the continuation of new stock issues.
Alongside the intensification of routine activity, a great deal of
work was also done to promote strategic goals, the most important
being the completion of preparations for the reform in the
government bonds market, which was launched in September.
The Stock Exchange played a significant role in the
implementation of the reform: TASE Clearing House began to
clear transactions in “Shahar” government bonds (a leading
fixed income product) traded in the interdealers system (MTS)
on T+1, and to operate the government bonds lending facility.
For the first time in its history, the Stock Exchange began to
clear transactions carried out on a foreign platform (MTS), and
4
to provide clearing services for foreign institutions that use the
services of the Clearing House members. As part of the
preparations that led up to the reform, futures on the “Shahar”
were launched in April.
Other contributions by the TASE to the reform included
introducing market making in the “Shahar” at the TASE, deciding
not to charge a commission for trade in “Shahar” at the TASE
in the second half of the year and establishing and operating
the communications network for MTS.
We note with satisfaction the successful integration of the TASE
in the reform and the praise from the Ministry of Finance and
the primary dealers for the Stock Exchange’s contribution.
In the months following the launching of the reforms, it appears
that trade on the Stock Exchange and trade by the primary
dealers has been coexisting in healthy competition and in both
frameworks the turnover in “Shahar” has increased. Naturally,
some of the very large transactions are made outside the TASE
by primary dealers. Nonetheless, the substantial liquidity and
the narrow margins in the Stock Exchange ensure its continuation
as the primary venue for trading in government bonds.
An important aspect of the reform in the bond market is the
interest shown by international investment houses that led to
the involvement of six of them as primary dealers.
During the year converting the Clearing House into a subsidiary
company of the Stock Exchange was completed.
Today, four international financial institutions are members of
the Stock Exchange - Citibank, which joined the Stock Exchange
and the Clearing House during 2006, and HSBC, UBS, and
Deutsche Bank, the exchange’s more veteran foreign members.
The Stock Exchange Board of Directors, with the approval of
the authorities, took a further step in this direction when it
authorized rules accepting international financial bodies as
remote members of the Stock Exchange.
Another important development in 2006 relates to the
implementation of the Bachar Commission recommendations,
which led to the sale of the bank-owned companies that
managed provident funds and mutual funds. At this stage the
most obvious result of this structural change is the increase in
competition among fund and asset management companies,
some of whom carry out aggressive marketing campaigns.
An additional facet of the increased competition is the substantial
increase in the public’s holdings of index linked certificates
ANNUAL REVIEW 2006
(ETFs), in their trading turnover, and in the variety of indices
which they track.
At the end of the year the number of Index Linked Certificates
traded on the TASE reached a threshold of 100, one half based
on Israeli indices and the other on foreign indices. In the second
half of the year, the turnover in index products reached 20
percent of the total turnover in shares, with most of the activity
being in the certificates that track TA-25 and TA-100 indices.
It is important to mention the numerous stock issues, convertible
securities and bonds traded in 2006, which emphasize the
primary role of the TASE: to supply funding that supports the
growth of the economy.
Of the large-sized IPOs, the most prominent are Paz Oil (stocks
and bonds) and Cellcom (bonds only). In the high-tech sphere,
numerous companies have conspicuously taken advantage of the
concessions granted by the Stock Exchange for raising capital.
Especially prominent are biotechnology firms, which numbered
24 by the end of the year.
It is also worthwhile noting that the increased international
activity of Israeli companies leads them to raise capital on the
Stock Exchange – equity and debentures - and that the numerous
stock offerings are working, slowly but surely, to increase the
rate of public ownership of stock and are contributing to
improving liquidity.
We cannot refrain from mentioning the intensive activity in the
area of marketing, which is demanded by globalization and the
competition between stock exchanges. The Stock Exchange’s
new web site was launched in the middle of 2006 and was an
immediate success. The new site provides extensive information
about the Stock Exchange, and has a clear and user-friendly
format in both English and Hebrew.
The popularity of the new website has increased dramatically.
A considerable amount of the Stock Exchange’s marketing
efforts were concentrated on promoting the Stock Exchange
among foreign investors and on cooperative endeavors with
other stock exchanges.
For the first time in the history of the Stock Exchange, an
investors’ conference was held in New York in cooperation with
NASDAQ. The keynote speaker at the event was the Governor
of the Bank of Israel, Prof. Stanley Fischer, while eight CEOs
from TA-25 companies gave presentations about their firms.
The conference was a success and in 2007 the NASDAQ and
5
TASE are planning to hold another such event. At the same
time, the Stock Exchange is handling the signing of cooperation
agreements (MOC) with NASDAQ, and with the LSE (London’s
main list). In January, a joint conference of the TASE and NYSE
for Israeli companies (the first of its kind) will take place in Tel
Aviv. The Euronext Stock Exchange has also expressed interest
to cooperate with the Tel Aviv Stock Exchange in various areas.
At present, joint efforts have begun in exploring possible avenues
of cooperation.
It should be noted that the growth of activity in the Stock
Exchange in 2006 made it possible to continue reducing the
commissions on shares trades and clearings, subsequent to
the previous year, when these fees were reduced three times.
The Stock Exchange guarantees that it will not rest on its laurels,
the operational plan for 2007 encompasses the following:
Completing the reforms in the government bond market,
mainly the dual listing of bonds, which the State of Israel
issued in international markets, and assisting the
establishment of a Repo market.
Moving to a T+1 clearing regime in corporate bonds and
treasury bills.
Combining the Stock Exchange clearing system with the real
time gross settlement payment system (RTGS), that the Bank
of Israel will launch in the middle of 2007.
Purchasing property and planning the new home of the Stock
Exchange.
Continuing the efforts to establish the Stock Exchange as one
of the main pillars of the Israeli economy, including joint
activities with the Israel Securities Authority.
Deciding about the next generation of trading system and
cooperation with a large stock exchange in Europe. In addition,
choosing a system to facilitate interfacing between remote
members and foreign investors and the Tel Aviv trading system.
It is an honor and a pleasure to thank everyone who strived to
accomplish the enormous achievements so far: the members
of the Stock Exchange, the Board of Directors, management,
employees, investors and the regulators who have assisted
the capital market to move forward.
Ester Levanon,
CEO
ANNUAL REVIEW 2006
Saul Bronfeld,
Chairman
SUMMARY OF SPECIAL ACTIVITIES
2006
Changes in the TASE management
(June 2006)
Prof. Yair Orgler concluded his
term of office after chairing the
Tel Aviv Stock Exchange for 10
years, the maximum period
allowed under the Securities
Law. The exchange's Chief
Executive Officer, Mr. Saul
Bronfeld, was nominated as
Chairman and his deputy, Mrs.
Ester Levanon, was appointed
as CEO.
Mr. Yoni Shemesh, Senior VP,
was appointed head of the IT and
Operations Department.
Saul Bronfeld and Prof. Yair Orgler
Ester Levanon
The TASE Takes Part in the Reform of the Government Bonds Market
(September 2006)
The reform in the government bonds is taking shape, with
the cooperation of the TASE.
Clearing via MTS
At the center of the reform is the MTS system for trading
in government bonds. The Ministry of Finance appointed
market makers, both local and foreign, for “Shahar” bonds.
The TASE's part in the reform consists of clearing transactions
carried out abroad via the MTS system: maintaining a REPO
pool for market makers to borrow from, supervising and
monitoring the market makers' activities on the TASE, and
establishing and maintaining the communications network.
For the first time in its history, the TASE Clearing House clears
transactions that seven select, major international investment
banks, (which are not members of the TASE Clearing House),
carry out on platforms elsewhere in the world.
6
Market Makers in “Shahar” Bonds
As part of the reform, the TASE also named market makers
for “Shahar” government bonds traded on the exchange.
The goal is to increase liquidity in the government bonds
market, mainly for the benefit of small and medium
investors. At any given time market makers are required
to quote two-way bid and ask orders amounting to at least
NIS 1 million.
T+1 Clearing and Settling
The TASE has shifted to clearing government bonds from
day T to T+1, for the convenience of international institutions
that trade in “Shahar” bonds.
Longer Trading Hours
The TASE has extended trading hours in bonds from 09:30
until 17:30, compared to 10:05 to 17:20 before the reform.
ANNUAL REVIEW 2006
Remote Membership at the TASE
Citibank Joins the TASE
(March 2006)
(August 2006)
The TASE permits foreign financial institutions (that lack
permanent local representation), to become "remote
members". Eligible institutions include international
banks and investment firms that have been stock
exchange members in their home countries for at least
10 years i.e. LSE (London), Euronext, NYSE (New York),
Deutsche Borse (Frankfurt), Eurex (Germany), SWE
(Switzerland) or TSE (Tokyo).
To be eligible, a potential remote member must have
capital of at least a billion dollars. It should also appoint
a senior manager to be responsible for handling its
activities on the TASE.
The remote members will join the international financial
groups that already have a representation in Israel and
are members of the TASE: HSBC, Deutsche Bank, UBS,
and Citibank.
From right: Ester Levanon, Andrew Gelb, global head of custody and
clearing for Citigroup; Ralph Shaaya, Citigroup Israel managing director;
Saul Bronfeld, and Patrick Dewilde, treasurer of global emerging markets.
Citibank has joined as a member of the exchange and of
the TASE Clearing House. The bank has been active in
Israel since 2000, operating through a branch in Tel Aviv.
It offers a wide range of services in commercial, investment
and private banking.
100 Index Linked Certificates (ETFs) at the TASE
(November 2006)
Daily trading volume in Index Linked Certificates has
increased to record levels of NIS 280 million a day, which
is about 20% of the total daily turnover in shares.
The TASE board resolved to tighten the requirements from
issuers of ETFs and of other index linked instruments and
to add maintenance rules.
An opening trade ceremony marking 100 ETFs at TASE
In November, the TASE marked the flotation of the 100th
Index Linked Certificates listed on the exchange. Another
new feature is covered warrants, which were introduced
at the beginning of 2006, thus expanding the range of index
linked instruments available for investors in Tel Aviv.
7
In order to encourage companies to have their certificates
rated, the TASE eased the shareholders equity rule
concerning AAA-grade certificates. The new maintenance
rules are designed to ensure that companies floating Index
Linked Certificates comply with the shareholders equity,
rating and insurance restrictions after the issue as well.
At the same time, the range of index instruments available
to the public was extended to include certificates that track
multiple indexes, and cover warrants on currencies.
ANNUAL REVIEW 2006
A Joint Investor Conference held by the TASE and NASDAQ in New York
(September 2006)
As part of its strategy to
encourage foreign investors to
operate in Israel and to create
collaboration abroad, the TASE
and NASDAQ exchanges held a
joint conference for investors in
New York.
Dozens of institutional investors
met with the managers of
leading Israeli companies,
including Bank Hapoalim, Bank
Leumi, Nice Systems, Delek
Group, Teva Pharmaceutical
Industries, ECI Telecom, Partner
C o m m u n i ca t i o n s , S a i f u n
Semiconductors, Elbit Systems,
and Israel Chemicals.
Nasdaq Stock Market closing bell ceremony
TASE Encourages Listing
of R&D Companies
New at the TASE: Options on
“Shahar” Bond Futures
(January 2006)
(April 2006)
The TASE continues its strategy to encourage technology
companies to issue in Tel Aviv. Since the new rules have
been accepted the TASE marked 17 initial public offerings
by high-technology companies in 2006, (most of which
engage in biotechnology), which increased the total number
of listed R&D companies to 24.
Due to the increase in the number of companies, the TASE
defined a new sub-sector: biotechnology and medical
devices companies.
A new instrument was introduced at the TASE: options
on“Shahar” bond futures. Two types were launched, one
on medium-range 3-6 year bonds and another on longterm 6-11 year bonds.
8
The options are structured identically to similar products
traded abroad, to simplify matters for Primary Dealers
in“Shahar” bonds. However, trading volumes in the new
instruments remain low at present.
ANNUAL REVIEW 2006
The TASE Launches a New Website
Longer Trading Hours in Shares
(June 2006)
(June 2006)
Following the increase in trading volumes and in order to
increase the overlap between trading in the U.S. and Tel
Aviv, the TASE extended trading sessions by half an hour
from 17:00 to 17:30.
Paz Oil: The Biggest IPO in 2006
(December 2006)
In order to provide investors and the general public with an
easily accessible information on trading, the TASE has upgraded
its online services and launched a new website at:
www.tase.co.il. The new site presents a wide range of trading
data and information in a friendly format and allows access
to historical information from year 2000 free of charge.
The site presents current and historical information on all
products traded on the exchange both in Hebrew and in English.
From right: Saul Bronfeld, Paz Chairman Zadik Bino, Paz CEO Moudi BenShach, Ester Levanon
A Special List for Illiquid Shares
In 2006 Paz Oil made the biggest offering of the year on TASE,
selling $400 millions worth of shares and bonds.
(December 2006)
The TASE decided to create a special list for illiquid shares.
Those shares will be traded twice a day in multi-lateral
trading - at the start and close of the trading session. No
transactions in these shares will take place during the
continuous trading phase.
(December 2006)
Companies will be relegated to this list if the daily trading
volume in their shares falls below a certain threshold, unless
they appoint market makers. Trading in the new index will
begin on June 3, 2007.
About 150 companies appointed market makers for their
shares during 2006, and the number is growing constantly.
The market makers are TASE members who undertake to
quote bid and ask orders throughout at least 80% of the trading
session, from pre-opening to trading at the closing rates.
9
Market Making in Shares Takes Root
ANNUAL REVIEW 2006
A PROPONENT
OF CHANGE
Dr. Yossi Bachar, Director General
of the Ministry of Finance, in an
interview to mark the end of his tenure.
Dr. Yossi Bachar was Director General of the Ministry of
Finance for more than three years, a period characterized
by far-reaching reforms that led to major advances in the
Israeli economy.
“With determination and perseverance we charted a
course that most of Israel’s governments, since
stabilization in 1985, have sought to implement but were
unable to carry out on such a large scale for various
reasons,” Dr. Bachar said.
“These policy developments included the promotion of
the private sector, reduction of social security allowances
to increase the incentive to participate in the work force,
budgetary restraint and structural changes in the economy
- such as the reforms of pension funds and the capital
market and the intensification of the privatization process.”
Dr. Bachar does not attribute all the credit for these
significant achievements to the Ministry of Finance.
“Timing is of the utmost importance,” he stressed. “The
economy was in a real crisis. Finance Minister Netanyahu
brought important leadership abilities from his tenure as
Prime Minister. Accordingly, he was able to exploit
opportunities and advance complex processes. Total
support from Prime Minister Sharon and the general
economic environment also contributed to the
implementation of reforms as a tool for avoiding the crisis
we were facing,” he added.
The outgoing director general does not ignore the
worldwide economic environment, which at that time
began to recover and contributed to the success of the
reforms by channeling funds to Israel and providing a
tailwind for Israel’s exports.
10
“When you do the right things for the right reasons, it
helps the public accept the changes,” Dr. Bachar stressed,
noting his belief that, essentially, the Israeli public
supports the steps that were taken.
“We went through a difficult period of fighting in the
North. Despite this, due to the economy’s strength, it
sustained only minor damage. Within one month the TA25 share index returned to its pre-war level; the Shekel
was affected very little, we managed to issue bonds in
international markets at an attractive interest rates and
the government decided to maintain the integrity of
budgetary objectives - none of which should be taken
lightly. We would not have achieved the above without
enacting the reforms”, Bachar stressed.
TASE: How would you describe the atmosphere in which
the Ministry of Finance operates?
Dr. Bachar: “There is no doubt that today, in light of the
results already achieved by the government’s economic
policy, the ministry and its policies enjoy wide support.
People may argue about nuances here and there, but
there is no argument about the essence – that the policy
was the right one; it gave a jump-start to the Israeli
economy allowing it to advance to another, better place.
The credit for this achievement goes to the government,
whose unrelenting determination gave us the opportunity
to work and to improve the economy.”
A Growing and Open Capital Market
The latest reforms in the capital market, led by Dr. Bachar,
started a revolution whose repercussions will be seen and
felt for many years to come.
ANNUAL REVIEW 2006
“The capital market reforms, which began with the reform disappointed in the lack of advancement in developing
in the pension funds, brought about awareness to the subject direct channels of distribution, mainly by mutual funds.
as a whole: where people invest their money, how much they Beyond that, there are still problems with the strength
pay for these services and the significance of the variety of of the banks in the area of distribution. These problems
products being offered. On the one hand, the capital market are clearly not surprising and I have no doubt that the
reforms created alternative possibilities for raising capital new situation, even if imperfect, is preferable to the
from institutional investors and at the same time previous one from the consumer’s point of view.”
decentralized the decision-making about where to invest TASE: Instead of strong banks, there are strong insurance
the public’s savings. Today all the pension funds are highly companies - is this really an improvement?
liquid: in the past they invested mainly in designated Dr. Bachar: “Absolutely! Instead of two strong banks, there
government bonds, whereas today they are looking for new are today more than nine very powerful organizations,
channels of investment. This reform
fighting for every customer. This is
“fuels” the capital market and assists
definitely a better situation.
"The competition for
its development . In addition, it reduces
Furthermore, the customer’s position
yields, which will
in relation to the insurance companies
the risk and gives consumers
intensify in the future,
i s m o re re a s o n a b le a n d i s
alternatives, since all of the resources
will direct more funds
characterized by fewer conflicts of
are no longer being allocated to a
toward TASE"
interest: the companies do not know
limited number of banks, but rather to
the state of the customer’s bank
a wide variety of organizations.. In
general, I believe very strongly that by expanding the market, account or income, therefore the customer’s bargaining
power has improved.”
everybody wins.”
TASE: Are you satisfied with the progress of the Bachar reforms? TASE: What do you think about the unification of the
Dr. Bachar: “The reforms are progressing and continue capital market regulators, like in Britain?
to move at a greater pace than anyone would have thought Dr. Bachar: “The report compiled by the Bachar team of
possible. It is enough to recall the debates about whether capital market regulators recommended the
to give the banks three or six years to sell the provident establishment of a task force to investigate this matter.
funds. Now, a year and a half down the line, almost all We decided to move forward with the reforms first and
the banks’ mutual and provident funds have been sold. avoid getting entangled in conflicts related to the structure
Today, without a doubt, we have a more competitive capital of capital market regulation. For various reasons, such
market which benefits consumers. There are more players a task force has not yet been set up and this is regrettable.
in the capital market who are competing to supply clients “I am convinced that in a modern capital market, where the
resemblance between the activities of all the organizations
with better quality service, at attractive prices.”
is becoming more apparent, greater uniformity is needed
TASE: What haven’t the reforms achieved yet?
Dr. Bachar: “I think it is still too early to judge. A year and both in the regulation process and in the rules of supervision.
a half do not provide enough perspective to determine I am not certain that the only correct way to do this is by
what has been accomplished. keep in mind that whoever means of a single, unified regulator. This issue must be
obtained the pension funds has also purchased a data examined in more detail.”
base of clients. Time is required to leverage those data TASE: How have recent reforms contributed to the Tel
bases in order to offer additional products and services Aviv Stock Exchange?
Dr. Bachar: “The reforms contributed greatly to the Stock
to the clients.
“At the same time, I can already state that I am somewhat Exchange. Generally speaking, any activity by a non-bank
(continued on page 26)
11
ANNUAL REVIEW 2006
THE TEL AVIV STOCK EXCHANGE IN 2006
On the wave of rapid growth during 2006, the Tel Aviv stock exchange reached new peaks,
demonstrating stability despite internal and external events. Stock indices continued to rise for the
fourth year in a row, with the year-end increase of 22%. Increases were accompanied by rapid
growth in the turnover of shares and options on the TA-25 index.
Shares offerings and the private placements of shares and convertibles in the local market totaled
$2.7 billion, with 30% of that raised by 37 newcomers to the market. Real estate companies stood
out in particular, raising nearly $700 million in shares and convertibles and about $2.3 billion more
in bonds. Following the growth of this sector the TA-Real Estate-15 Index soared by 80%.
This year, many index linked certificates on local and international indices; covered warrants;
and commodity certificates, were added to the index products market. By the end of the year, 116
index linked certificates were traded, constituting about 20% of the turnover in the shares – double
what it was last year.
In the bonds market, daily turnover amounted to $385 million, an increase of 30% compared to the
previous year. The government, which enjoyed a budget surplus and raised about $1 billion abroad,
also reduced local bond issues during the year, enabling the business sector to raise the record
amount of $11 billion in bond issues and private placements - somewhat higher than 2005.
THE EQUITY MARKET PRICES AND TURNOVER, 1980-2006
Daily
Turnover
(US $ millions)
TA-100
Index
350
1,200
300
1,000
250
800
200
600
150
400
100
200
50
0
0
80
81
82
83
84
85
86
87
88
89
90
12
91
92
93
94
95
ANNUAL REVIEW 2006
96
97
98
99
00
01
02
03
04
05
06
THE EQUITY MARKET
Share prices in 2006 were subject to high levels of
volatility. In the first few months, the TA-100 index rose
by 12% continuing the trend from 2005 and peaking at
the beginning of May. The fall in the emerging markets
and the deterioration in the security situation in the
South of the country in June, led to a change in the trend
and a reduction in share prices. Thereafter during the
month-long war in Lebanon in July, the index fell by only
half a percent. From September, there were fresh
increases in prices and for 2006 as a whole, the TA-100
index increased by 22%, culminating a 210% increase
over the past four years.
There were increases in all of the leading indices, with the
exception of the Tel-Tech index, which was influenced by
NASDAQ trends, and fell by 3%. The minor shares (included
in the Yeter-150 index) increased by 50%, following a
cumulative increase of 185 % in the years 2003-2005.
TABLE 1
MAIN INDICATORS OF THE EQUITY MARKET, 1997-2006
Capital Raised(1)
(US$ billions)
Thereof:
Capital Raised
in Israel
Number of
Listed Companies
2.2
1.9
659
12
26.8
62
2.1
2.0
662
14
(12.4)
1999
86
1.5
1.3
654
13
62.7
2000
115
3.3
3.3
665
37
3.2
2001
64
1.3
1.3
649
14
(16.4)
2002
51
1.2
1.2
624
9
(30.6)
2003
80
0.7
0.7
577
4
73.9
2004
147
3.6
1.6
578
25
21.0
2005
223
3.2
2.7
584
32
21.1
2006
326
9.6
2.7
606
44
22.0
Year
Daily Turnover
(US$ millions)
1997
59
1998
(1) Including issues abroad of the dual-listed companies, private placements and exercise of warrants.
(2) Including new dual-listed companies, excluding new ETF companies.
All of the data in the review are in US dollar terms. In 2006, the dollar fell against the shekel by 8.2%.
13
ANNUAL REVIEW 2006
Thereof:
New Listed
Companies(2)
TA-100 Index
% Change
(US$ terms)
EQUITY MARKET - DAILY TURNOVER, 2000-2006
HIGHLIGHTS IN 2006
(US $ millions)
400
Daily Peak:
947
$ 325 million
Average daily turnover in shares – 45%
higher than in 2005.
$ 947 million
The turnover in shares on January 5th,
2006, the day on which Mr. Ariel Sharon
was hospitalized.
300
200
100
22%
Annual increase in TA-25 index and
TA-100 index.
0
2000 2001 2002 2003 2004 2005 2006
80%
Annual increase in the Real Estate-15
index.
TA-25
TA-75
YETER
ETF
Among the industry indices, the Real Estate-15 index
made significant gains for the second year running, with
an increase of around 80%, while bank shares posted an
increase of only 13% during the year.
37 new companies
Raised $ 800 million.
33 real estate companies
The weakness of the dollar led to a zero inflation and enabled
the Bank of Israel interest rates to be lowered in the fourth
quarter of the year, by one half a percent, to a level of 5%.
Raised $ 700 million on the TASE.
$ 208 million
The Paz Oil issue – the largest IPO
(Initial Public Offering) on the TASE.
14
The daily turnover in shares in 2006 reached a new record
of $ 325 million - around 45% higher than the previous
year. On January 5th, the day on which the former Prime
Minister was hospitalized, turnover reached a record of
$ 947 million.
ANNUAL REVIEW 2006
Capital raised in Israel by listed companies (through
offerings, private placements and the exercise of warrants)
in 2006 reached $ 2.7 billion, similar to the previous year:
$ 1.7 billion was raised during the year, through 87
offerings in Tel Aviv, similar to the amount raised in
2005. Around a third of the amount was raised through
convertible bonds, compared to more than a half in the
previous year. Many offering were by real estate
companies, which raised a total of $ 700 million.
Of this amount, $ 800 million was raised by IPOs of 37 new
INTERNATIONAL STOCK INDICES’ YIELDS, 2004-2006
$1 billion was raised during the year through private
placements of shares on the domestic market, as in the
previous year. Most significant was the private placement
by the American company, Verifone, of $ 405 million, as
part of the Lipman acquisition, by way of an exchange
of shares and its delisting from the TASE.
TA-100 INDEX & NASDAQ 100 COMPOSITE, 2002-2006
%
(US $ terms)
%
companies. This amount was 45% higher than that raised
by 24 new companies in 2005. Half of the amount, around
$ 400 million, was raised by 11 real estate companies. At
the end of the year, one of the largest offerings in recent
years took place, when Paz Oil raised $ 208 million.
120
220
100
180
(US $ terms)
140
80
100
60
80
40
60
20
40
0
2002
2003
2004
2005
EM
25
25
10
ES
0
10
0
I2
40
I
SC
M
TA
X
DA
C
CA
SE
FT
50
ON
KE
P
IK
N
S&
-J
Q
DA
AS
N
W
DO
0
TA-100 Index
15
ANNUAL REVIEW 2006
NASDAQ 100 Composite
2006
The dual listed companies raised $ 7 billion overseas
compared to $ 500 million in 2005. Most of the money,
was raised by Teva, for financing it’s merger with the
American company, IVAX.
and abroad rose to 60. It should be noted that the American
company Verifone, which commenced trading in Tel Aviv
in November, after the acquisition of the dual listed
company, Lipman, was added to the TA-25 index and to
the Tel-Tech 15 index.
2006 saw a halt in the trend of the selling of shares by
major shareholders, following sales of $ 1.2 billion in
each of the last two years.
BREAKDOWN OF SHARES
OWNERSHIP ON TASE, 2006
Despite the Lebanon War, foreign financial investors
continued to express confidence in the Israeli economy
and did not reduce their level of investments in the stock
market. Over the year as a whole, there was no significant
change in share holdings of foreign financial investors.
The equalization of the tax rate on capital gains on Israeli
investments abroad to the rate levied on investments in
the domestic market, (effective from the beginning of
2006), did not lead to a significant increase in the rate of
Israeli investments in foreign shares. During the year,
Israelis invested $ 4.5 billion in foreign shares, 20% more
than the previous year.
As part of the privatization, the Government completed
the sale of 26% of the shares of Israel Discount Bank to
companies under the control of the Bronfman and Schron
families and a further 6% of the bank to institutional
investors. Government revenue from the privatization of
companies in 2006 amounted to $ 400 million, compared
to $ 2 billion in the previous year.
During the year, seven more companies dual listed:
Verifone, Xfone, Ampal, Radcom, Top Image, Pointer- traded
in the US, and Visonic - traded in London. Thus, the
number of companies traded simultaneously in Israel
16
34%
41%
10%
%5
8%
3% 3% 1%
“Float” (50%)
Interested Parties (50%)
Israeli & International Public (34%)
Israeli (41%)
Provident & Pension Funds (10%)
International (8%)
Insurance Companies (3%)
Government (1%)
Mutual Funds (3%)
ANNUAL REVIEW 2006
INDEX PRODUCTS (ETFs)
The development of the market for index linked certificates
(ETFs) accelerated in 2006, with 73 new certificates being
issued during the year, adding up to 116 at the year’s end.
Of which: 41 certificates were traded in Tel Aviv on
domestic share indices, 59 certificates on international
share indices, 13 commodity certificates and 3 certificates
on domestic bond indices. This market segment includes
15 Reverse certificates and six covered warrants.
HIGHLIGHTS IN 2006
116 Index Products (ETFs)
Traded in Tel Aviv at the end of 2006, 73 of
which were issued in 2006.
$ 2.5 billion
The value of the public's holdings in Index Linked
Certificates in September 2006 reached $ 2.5 billion 65% higher than in December 2005.
The value of the public's holdings in ETFs,
in September 2006 – an increase of 65%,
compared to the end of 2005.
The great interest these certificates generated was
reflected in enthusiastic turnovers, at almost $ 65 million
a day. It should be noted that the weight of the trading in
Index Linked Certificates, of the total shares in Tel Aviv, is
around 20% - twice the rate for 2005.
$ 65 million
The daily turnover in ETFs on share indices
- 20% of the turnover in shares, twice the
rate achieved in 2005.
THE FIXED INCOME MARKET
Bond prices rose during the year by 14%, most of it due
to the devaluation of the US dollar against the Israeli
Shekel by 8% during 2006. Index-linked corporate bonds
rose by a similar rate, while unlinked Government
"Shahar"- bonds increased by 17%. Corporate bonds linked
to foreign currency rose by only 6% during the year.
The daily turnover in bonds increased by 30% over the
previous year-reaching a peak of $ 385 million. There
was a gradual increase in turnover during the year and
in the fourth quarter, the daily volume further increased
17
to more than $ 500 million, around half in "Shahar" bonds.
It should be noted that on September 25th, a turnover of
$ 710 million was recorded.
Total issues by the Government in the domestic market,
continued to fall for the third year in succession, as a
result of a budget surplus.
The gross amount raised in 2006 by the Government
amounted $ 6.7 billion. In net terms (after redemptions),
the Government only raised $ 700 million – the lowest
level since 2000.
ANNUAL REVIEW 2006
It should be noted that in June, a series of 30-year indexlinked bonds was issued for the first time, and in
November, a series of 20-year unlinked bonds.
Issues and offerings by the private sector through bonds
amounted $ 10.8 billion, slightly higher than the records
set in 2005, when $ 10.1 billion was raised:
$ 4.7 billion was raised in listed bond issues, most of
them index-linked, slightly lower than the previous year.
Real estate companies (17 of which are newly-listed
companies) raised about half of that amount.
DAILY TURNOVER OF BONDS, 2000-2006
HIGHLIGHTS IN 2006
$ 385 million
Average daily turnover in bonds in 2006 (of
which $ 200 million was in "Shahar").
$ 710 million
(US $ millions)
Peak daily turnover in bonds on September
25th, 2006.
Daily Peak:
710
400
A record amount of $ 5.6 billion was raised in issues
to institutional investors, compared to $ 4 billion which
was raised in 2005.
Only $ 500 million was raised in public issues of
structured bonds and certificates of deposit, compared
to $ 800 million the previous year.
$ 11 billion
Total bond issuances by the business sector.
24 new companies
300
Raised $ 500 million through bond issues,
more than double 2005.
200
42 real estate companies
Raised $ 2.3 billion through index-linked
bonds.
100
$ 555 million
Largest bond issue on the TASE by Makhteshim-Agan.
0
2000 2001 2002 2003 2004 2005 2006
Government
Bonds - “Shahar”
Other Government
Bonds
$ 700 million
Non Government
Bonds
18
Net Government issues on the domestic
market (lowest level since 2000).
ANNUAL REVIEW 2006
THE DERIVATIVES MARKET
There was an increase in activity in options on the TA25 index, as on the share market. Daily turnover
increased by 20% compared to 2005, reaching 305,000
contracts, the highest turnover since they were launched.
It should be noted that on the fifth day of the fighting in
Lebanon, July 16th, a record turnover of 818,000 contracts
was recorded.
Trading in dollar options was characterized this year by
high level of volatility and despite the appreciation of
the Shekel against the dollar there was no significant
increase in activity. In 2006, an average of 30,000 dollar
options were traded - 10% more than the turnover in
the previous year.
DAILY TURNOVER
OF TA-25 INDEX OPTIONS, 2000-2006
400
(Thousands of contracts)
Daily Peak:
818
300
200
100
0
2000 2001 2002 2003 2004 2005 2006
TABLE 2
TA-25 INDEX OPTIONS TURNOVER, 2000-2006
Year
Daily Turnover
(thousands of contracts)
Derivatives
liquidity ratio(1)
Maximum no. of open
interest contracts
(thousands)
2000
109
855%
659
2001
110
1,000%
570
2002
118
1,059%
605
2003
120
806%
619
2004
153
859%
826
2005
258
1,126%
1,055
2006
305
1,187%
1,080
(1) The ratio between the turnover of the TA-25 options, in the underlying asset terms, (delta-weighted, taking into
account the probability that the options will be exercised) and the turnover of the TA-25 shares.
19
ANNUAL REVIEW 2006
TASE EVENTS
The Governor of the Bank of Israel Visits the TASE
Cellcom Opens
the Trading day
Saul Bronfeld and Prof. Yair Orgler award a Certificate of Appreciation to Prof. Stanley Fischer
From right: Cellcom CEO Amos Shapira, Saul
Bronfeld, Cellcom Chairman Ami Erel
(March 2006)
The Governor of the Bank of Israel, Prof. Stanley Fischer, opened the trading
day in Tel Aviv. During his visit, the Governor said: “The stock exchange is a
key component in the fundraising system in Israel. The bigger and more
efficient the exchange becomes, the better it is for the economy. The financial
infrastructure that the exchange provides is just as crucial to economic
development as any other infrastructure, physical or institutional.”
(May 2006)
Cellcom celebrated being added to
the roster of companies listed in Tel
Aviv, after it raised NIS 1.75 billion
through bonds.
Ormat and Gazit-Globe Join TA-25 Index
Conference of New TASE Companies
From right: Gazit Globe CEO Dori Segal, Gazit globe Chairman Haim Katzman,
Ormat CEO Judith (Dita) Bronicki, Ormat Chairman Yehuda Bronicki
From right: Africa Israel Residential CEO Yoram Keren, head of Africa Israel
Marketing Department, Zvia Leviev, and Pini Cohen, CEO of Africa Israel
(July 2006)
Energy company Ormat and Real Estate company Gazit
Globe, celebrated their entrance to the TA-25 index, and
opened the trading day at the TASE.
20
(July 2006)
A conference was held by the TASE for companies which
were listed from 2004 until mid 2006.
ANNUAL REVIEW 2006
NASDAQ-TASE CONFERENCE
From right: Bank Leumi CEO Galia Maor, Ronit Harel Ben-Zeev, Prof. Stanley Fischer, Cedric
Olivestone (Bank Leumi) and Saul Bronfeld
Ester Levanon
Charlotte Crosswell, Nasdaq
From right: Edgar Bronfman and Matthew Bronfman
Participants at the TASE-Nasdaq Conference in Times Square
21
ANNUAL REVIEW 2006
THE BOARD
OF DIRECTORS
CHAIRMAN
Saul Bronfeld
NOMINATED DIRECTORS
Shuky Abramovitz
Barry Ben-Zeev
Eli Bihari
Zeev Gutman
Yossi Nitzani
Dr. Akiva Sternberg
Prof. Daniel Tzidon
Efrat Yavetz
Zeev Milbauer
Yoram Sirkis
Rami Tarom
Efraim Avraham
Haim Avraham
Clal Finance Batucha
Bank Hapoalim
The Central Co./ IBI
The First International Bank
Mizrahi Tefahot Bank
Union Bank of Israel
Bank Leumi Le-Israel
Barry Topf
Ministry of Finance
Bank of Israel
OUTSIDE DIRECTORS
Yoram Alster
Prof. Simon Benninga
Gil Bianco
Gittit Guberman
Nissim Cohen
Dr. Akiva Offenbacher
Ester Levanon
TASE
MANAGEMENT
TASE
MEMBERS
Ester Levanon - Chief Executive Officer
Ronit Harel Ben-Ze'ev - Senior Vice President, Listing & Economic Department
Yosi Levi - Senior Vice President, Membership & Surveillance Department;
Human Resources Department
Hagit Neeman - Senior Vice President, General Counsel and Corporate Secretary
Dror Shalit - Senior Vice President, Trading and Clearing Department
Yoni Shemesh - Senior Vice President, IT & Operations Department
Yossi Treister - Senior Vice President, Administration Department
BANKS
BROKERAGE FIRMS
Bank Hapoalim
Bank Leumi Le-Israel
Bank of Israel
Bank of Jerusalem
Bank Massad (candidate)
Bank Otsar Ha-Hayal
Citibank N.A.
HSBC Bank
Israel Discount Bank
Mercantile Discount Bank
Mizrahi Tefahot Bank
The First International
Bank of Israel
UBank
Union Bank of Israel
Altshuler Shaham (candidate)
Analyst Exchange & Trading Services
Clal Finance Batucha Investment Management
Deutsche Securities Israel
Direct Investments House (Portfolio Management)
DS Securities & Investments
Excellence Nessuah Brokerage Services
Gaon Investment House
Harel Investment House
Israel Brokerage and Investments I.B.I
Poalim Sahar
Prisma Capital Markets
Psagot Ofek Investments House
The Central Company Stock Exchange Services (N.E.)
UBS Securities Israel
22
ANNUAL REVIEW 2006
TABLES
TABLE 3
TABLE 4
TA-25 INDEX COMPANIES JANUARY 1, 2007
MOST ACTIVELY
TRADED SHARES, 2006
Security name
Market
capitalization
(US $ millions)
Weighting*
Security name
Daily turnover
(US $ thousands)
24,425
9.50%
1. Bank Hapoalim
28,147
2. Israel Chemicals
7,934
9.50%
2. Teva
24,460
3. Bank Hapoalim
5,881
8.90%
3. Bank Leumi
19,917
4. Bank Leumi
5,787
8.77%
4. Israel Chemicals
16,137
5. Bezeq
4,256
6.45%
5. Makhteshim-Agan
9,989
6,795
1. Teva
6. Israel Corporation
3,811
5.77%
6. Africa
7. Africa
3,756
5.69%
7. Bezeq
6,761
8. Verifone
2,900
4.39%
8. Israel Discount Bank
6,453
9. Makhteshim-Agan
2,435
3.69%
9. Delek Group
5,757
5,454
10. Discount Investment
2,242
3.40%
10. Ormat
11. Israel Discount Bank
2,184
3.31%
11. Israel Corporation
4,975
12. Delek Group
1,991
3.02%
12. Mizrahi Tefahot
4,353
13. IDB Development
1,779
2.70%
13. Koor
3,694
3,571
14. Partner
1,765
2.67%
14. IDB Development
15. Perrigo
1,633
2.47%
15. Partner
3,271
16. Mizrahi Tefahot
1,630
2.47%
16. Elbit Systems
3,259
17. Gazit Globe
1,619
2.45%
17. Discount Investment
3,169
2,905
18. Nice
1,554
2.36%
18. Gazit Globe
19. Elbit Systems
1,368
2.07%
19. Nice
2,668
20. Ormat
1,314
1.99%
20. Clal Insurance
2,516
21. Clal Insurance
1,286
1.95%
21. IDB Holdings
2,473
22. Harel Insurance
1,154
1.75%
22. Elbit Imaging
2,454
23. Strauss-Elite
1,081
1.64%
23. Migdal Insurance
2,341
24. Kardan N.V.
1,079
1.64%
24. Harel Insurance
2,026
955
1.45%
25. Strauss-Elite
1,600
85,819
100.00%
25. IDB Holdings
TOTAL
175,145
TOTAL
59% OF TOTAL TURNOVER
*Weighting is adjusted according to the 9.5% cap.
23
ANNUAL REVIEW 2006
TABLE 5
CAPITAL RAISED BY SECURITY TYPES, 1997-2006 (US $ millions)
Year
Shares & convertibles(1)
Israel
Abroad
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Change in 2006
1,924
2,011
1,287
3,295
1,327
1,206
746
1,582
2,748
2,713
(1%)
Government
Bonds - Net
234
105
217
25
0
0
0
2,054
465
6,909
1,386%
-1,605
-618
-456
-2,062
3,112
4,932
4,196
4,150
1,208
698
(42%)
Non Government
Bonds(2)
356
592
383
67
713
1,358
2,557
4,496
10,060
10,802
7%
(1) Including direct offers, private placements, exercise of warrants and issues of dual-listed companies floated in the U.S and Europe.
(2) Including issues to institutionals.
TABLE 6
DAILY TURNOVER(1), 1997-2006 (US $ millions)
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Change in 2006
Shares &
convertibles
Bonds
59
62
86
115
64
51
80
147
223
326
46%
55
78
63
74
131
159
160
214
298
384
29%
Treasury
Bills
27
37
39
48
50
78
107
140
151
179
19%
Total
141
177
188
237
245
288
347
501
672
889
32%
(1) Including off-the-floor transactions.
TABLE 7
MARKET CAPITALIZATION OF LISTED SECURITIES, 1997-2006 (US $ billions)
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Shares &
convertibles
46.4
40.9
65.4
66.8
57.6
42.6
70.4
92.1
122.6
161.4
24
Bonds
Treasury
Bills
Total
40.9
37.4
39.7
41.4
44.0
45.0
57.6
69.5
79.7
98.9
5.9
5.8
5.6
7.2
7.1
8.9
12.7
17.5
18.9
20.9
93.2
84.1
110.7
115.4
108.7
96.5
140.7
179.1
221.2
281.2
ANNUAL REVIEW 2006
TABLE 8
ANNUAL YIELDS OF THE EQUITY INDICES 1997-2006 (in US $ terms)
Year
General Share Index
TA-25
TA-100
Other Shares
Tel-tech 15
1997
24.3
27.5
26.8
17.9
-
1998
(12.4)
(13.8)
(12.4)
(12.1)
-
1999
64.7
57.5
62.7
73.4
153.9
2000
3.1
7.3
3.2
(4.1)
(31.3)
2001
(14.6)
(17.0)
(16.4)
(6.6)
(7.1)
2002
(25.3)
(32.2)
(30.6)
(25.3)
(43.6)
2003
68.1
63.3
73.9
60.7
147.3
2004
19.5
24.6
21.0
33.8
19.4
19.5
(13.5)
49.3
(3.3)
2005
24.3
24.7
21.1
2006
15.3
22.6
22.0
TABLE 9
ANNUAL YIELDS OF THE BOND INDICES, 1997-2006 (in US $ terms)
Year
General Bond
Index
CPI Linked
Bonds
Non Linked
Bonds
Dollar Linked
Bonds
1997
3.3
2.4
7.0
4.3
1998
(7.2)
(8.8)
(5.2)
3.4
1999
6.5
4.9
14.0
4.2
2000
7.4
5.0
15.1
5.9
2001
3.6
5.3
0.7
3.0
2002
(6.7)
(6.0)
(9.0)
0.8
2003
22.9
19.5
29.5
3.0
2004
7.1
7.3
7.3
2.3
2005
(0.9)
(0.2)
(1.4)
(0.7)
2006
14.0
13.6
15.9
6.4
25
ANNUAL REVIEW 2006
A PROPONENT OF CHANGE
(continued from page 11)
financial institution increases the scope of activity in the
TASE. The capital market reforms increased the scope
of resources available to it, increased the number of
players involved, and directed public attention to the
importance of the TASE. We all know that long-term
investment in shares, always, but always, earns higher
returns than fixed income investments. Slowly but surely,
everyone will become aware of this and more money will
be directed to shares.”
International Investors Must Become
Familiar with the Israeli Economy
International investors have become part of the economic
scene in Israel and have arrived mainly in the wake of
the successful reforms carried out here and also in light
of the tendency to invest in emerging markets, which has
been going on for the past few years.
“I believe that foreign investors will continue to come,” Dr.
Bachar declares, stressing that this trend will persist so
long as we remain attractive on the macro-economic level.
“Global investors scrutinize us on the basis of results growth, stability, inflation and restraint; thus as long as the
macro-economic parameters continue to be positive and
an encouraging business atmosphere persists, we continue
benefiting from the interest of these investors.”
TASE: How can they be encouraged to invest more in the
Tel Aviv Stock Exchange and in Israel?
Dr. Bachar: “Steps must be taken to expose them to the
great advantages of investing in Israel. I have often had
the opportunity to meet people from abroad and after our
presentation of Israel’s economy, they would come over
to me and say that they were not familiar and unaware
of the facts.
Hence, it is important that people like Prof. Stanley Fischer
continue to represent us abroad and encourage
international investors to operate in the Israeli market.
The governor of the Bank of Israel is making an invaluable
contribution in this area.”
26
Privatization is an integral part of sagacious economic
policy, according to Dr. Bachar.
“It’s simple. The business sector knows how to manage
business organizations better than the government. The
government knows how to delineate policy but is not good
at managing business; it is therefore preferable for
government companies to be privatized.”
TASE: What is your opinion about privatizing government
companies via public issue on the Stock Market?
Dr. Bachar: “As a rule, privatization via public offering is
the right move. Past experience indicates that privatization
through the Stock Exchange gives a fair ‘market price’ of
the privatized company and contributes to the expansion
of the capital market. In the privatization of Haifa Refinery,
we chose a public offering of shares, listed on the Stock
Exchange. But it must also be taken into account that there
are certain circumstances, which would make it easier
and more suitable to sell a company to a single buyer, for
example when a company’s structure is complex.
In any event, even if a company undergoes privatization
outside the Stock Exchange, in most cases it will find its
way to the Stock Exchange at a later stage, since this is
the best place to raise capital. We saw this recently in the
Paz Oil IPO and with many other companies in the past.”
TASE: Finally, a few words about the Tel Aviv Stock Exchange...
Dr. Bachar: “The TASE is one of the most important
foundations supporting the development and growth of
the Israeli economy. The stronger the Exchange the better
it will be for Israel’s economy, and in the end, for its
citizens as well. I hope that the reforms will bring about
a decrease in the centralization of ownership of Israeli
companies. I also very much hope that foreign investors
will continue to invest in the Stock Exchange and assist
it and the economy in general to flourish.”
TASE: What are you planning to do after you leave the
Ministry of Finance?
Dr. Bachar: “I have not yet made a final decision. I just
know that it is going to be interesting…”
ANNUAL REVIEW 2006
TASE MEMBERS - CONTACTS FOR INTERNATIONAL INVESTORS
Banks
Contact Person
Bank Hapoalim
Efrat Yavetz
Bank Leumi Le-Israel
Shoshie Haimovici
Bank of Israel
Roy Stein
Bank of Jerusalem
Tammy Sand
Bank Otsar Ha-Hayal
Orit Horesh
Bank Massad (Candidate)
Rebecca Algrisi
Citibank, N.A.
Sagit Lampert
HSBC Bank
Raz Lerman
Israel Discount Bank
Yeheskel Shiri
Mercantile Discount Bank
Joseph Kazum
Mizrahi Tefahot Bank
Shmuel Ben-Eliezer
The First International Bank of Israel
Dafna Zucker
UBank
Ronit Schwartz
Union Bank of Israel
Dr. Akiva Sternberg
Tel (+972)
Fax (+972)
E-mail
Web Site
3-5673187
3-5674862
yavetz.efrat@mailpoalim.co.il
www.bankhapoalim.co.il
3-5149106
3-5148548
shoshie@bll.co.il
www.leumi.co.il
3-5640604
3-5640628
roy_s@boi.gov.il
www.bankisrael.gov.il
3-7952250
3-5102788
tamiz@bankjerusalem.com
www.bankjerusalem.co.il
3-7556261
3-7556071
orit.horesh@mailotsar.co.il
www.bankotsar.co.il
3-5641343
3-5641441
rebecca.algrisi@bankmassad.co.il www.bankmassad.co.il
3-6842528
3-6842402
sagit.lampert@citigroup.com
www.citigroup.com
3-7101190
3-7101130
razlerman@hsbc.com
www.hsbc.com
3-5146905
3-5146940
hezi.shiri@discountbank.co.il
www.discountbank.net
3-5647720
3-5647721
kazum@mdb.co.il
www.mercantile.co.il
3-7552165
3-7559140
benelizrs@umtb.co.il
www.mizrahi-tefahot.co.il
3-5196224
3-5100253
zucker.d@fibi.co.il
www.fibi.co.il
3-5645631
3-5645234
rschwartz@u-bank.net
www.u-bank.net
3-5191840
3-5191849
akivas@ubi.co.il
www.unionbank.co.il
Tel (+972)
Fax (+972)
E-mail
Web Site
3-6480105
3-6480004
ranshaham@altshul.co.il
www.altshul.co.il
3-7147147
3-7147142
yair@analyst.co.il
www.analyst.co.il
3-5653548
3-6251017
ronen@clal-fin.co.il
www.cfb.co.il
3-7102036
3-7102030
hadar.oshrat@db.com
www.db.com
3-9785502/5
3-9211965
gioraz@yih.co.il
www.yashir-invest.co.il
3-6843355
3-6843330
danny@ds-invest.co.il
www.ds-invest.co.il
3-7532072
3-7532040
yaelp@xnes.co.il
www.xnes.co.il
3-6111527
3-6124838
amir@gih.co.il
www.gih.co.il
3-7108454
3-7108337
shayb@rlnet.co.il
www.harel-group.co.il
3-5193452
3-5193456
lital@ibi.co.il
www.ibi.co.il
3-7914401
3-7914488
raz.ron@prismafinance.com
www.prismafinance.com
3-7968806
3-7968889
shayy@psagotofek.co.il
www.psagotofek.co.il
3-5190444
3-5170288
erane@msh.co.il
www.msh.co.il
9-9600116
9-9600124
yaron.bloch@ubs.com
www.ubs.com
Brokerage Firms
Contact Person
Altshuler Shaham (Candidate)
Ran Shaham
Analyst Exchange & Trading Services
Yair Wertheimer
Clal Finance Batucha Investment Management
Ronen Waisserberg
Deutche Securities Israel
Hadar Oshrat
Direct Investment House
Giora Dan Zarechansisky
DS Securities & Investments
Danny Dilevsky
Excellence Nessuah Brokerage Services
Yael Polus
Gaon Investment House
Amir Segev
Harel Investment House
Shay Benhamou
Israel Brokerage and Investment I.B.I.
Lital Kost
Prisma Capital Markets
Raz Ron
Psagot Ofek Investments House
Shay Yaron
The Central Company Stock Exchange Services (N.E.)
Eran Eshel
UBS Securities Israel
Yaron Bloch