2011 was a turnaround year for the TASE equity market. After a two year bull market, the TA-25 index lost 18%, accompanied by a decline in trading volume and primary market activity.
2011 opened with steady price levels. Towards the end of April, however, prices took a downward turn, which persisted throughout the remainder of the year. Market activity was marked by volatile trade and the downward trend affected all leading TASE share price indices. In wake of the 7.7% devaluation of the NIS against the US dollar, the TA-25 index declined 24% in dollar terms.
Industry indices experienced similar sharp price decreases in dollar terms. The TA-Finance index stood out, losing 39% over the year. Investment companies experienced a precipitous 45% decline after gaining 29% in 2010. Prices on gas and oil exploration securities retreated 13%, after the stellar gains registered in the previous two years, triggered by the discovery of offshore gas fields in 2009.
Following several years during which TASE registered outstanding returns relative to most foreign securities markets, in 2011 the TA-25and TA-100 declined at a rate similar to that of the French and Japanese exchanges and the MSCI emerging market index. In contrast, U.S.securities markets rose up to 5%.
Click here to dowload the TASE Annual Review.