Tel Aviv Stock Exchange To Launch New Index

The Tel Aviv Stock Exchange announced that it would launch the TA 75 index next month.. The new Index is designed to track the 75 shares that follow the Exchange's largest 25 shares. The TA 75, like the Exchange's current benchmark index, the TA 100, will be weighted by market capitalization. The TASE will start up the TA 75 Index on January 16. "International index-based funds usually track the TA 25 shares, which account for some 55% of the TASE's market capitalization," said Dror Shalit, head of the Exchange's trading department. "But the market's upturn in recent months has shifted the focus to the next shares in line." In 1999, the shares that would have made up the TA 75 Index posted a return of 75%, compared with 57% for the TA 25 Index. Two newly established local mutual funds have already chosen to invest exclusively in the TA 75 shares. Responding to the investment community's demand, the Exchange decided to form the TA 75 Index, which will further boost the profile of its component companies. These shares will remain part of the TA 100 Index, which comprises the Exchange's 100 largest shares. Mr. Shalit added: "Index funds are a way for investors to diversify their portfolios, while easing the risk of weaker performance from any individual stock." The Tel Aviv Stock Exchange, founded in 1953, is owned by its 28 member firms and is regulated by the Israel Securities Authority. The Tel Aviv Stock Exchange provides highly advanced electronic trading systems for shares, bonds, Treasury bills and derivatives. All trades are cleared and settled by the TASE Clearing House. The TASE offers international investors a combination of attractive investment opportunities and a full complement of market services, including an elaborate and user-friendly website at www.tase.co.il.