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The Tel Aviv Stock Exchange Announces The TA Banking Index

Date 30/05/2000

The Tel Aviv Stock Exchange announced that on June 1, 2000,it would introduce the TA Banking Index. The index will track the performance of the five TASE-listed bank shares with the highest market capitalization. The Exchange also decided to launch options and futures contracts on the new index. Trading in the TA Banking Index derivatives will begin after the start of trading in new derivatives on the TA 75 Index, which is expected shortly.

Dror Shalit, head of the TASE's Trading Department, said that the active trading in bank shares would be reflected in derivatives trading. "The new product will enable investors to hedge their holdings in the banks shares at low cost, "Mr. Shalit said. "The Tel Aviv Stock Exchange will continue to widen the variety of financial products available to investors." Volumes of TA 25 Index options have tripled since the automation of trading last October. In April, a record 111,000 options were traded on daily average.

The TA Banking Index will be the Exchange's third launch of an index this year. On April 2, the TASE launched Tel-Tech, a new index for high-tech listed companies.The Tel-Tech reflects the performance of 44 companies from the electronics, computers and life sciences sectors and publicly traded venture capital funds. The Tel-Tech Index serves as a benchmark for local and international investors who want to track Israel's fast growing and closely watched technology sector. The TA 75 Index launched on January 16, comprises the 75 shares that follow the Exchange's largest 25 shares.

The Tel Aviv Stock Exchange, founded in 1953, is owned by its 28 member firms and is regulated by the Israel Securities Authority. The Exchange provides a highly advanced electronic trading system 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 opportunitiesand a full complement of market services, including an elaborate and user-friendly Website at www.tase.co.il.