Israeli investments generally are included in emerging-markets portfolios, but many international investment houses consider Israel a fully developed market. The Tel Aviv Stock Exchange offers investors a sophisticated, fully automated trading system and a strict regulatory framework, enforced by the Israel Securities Authority. In the past two years, the benchmark TA 25 Index increased 70% in U.S. dollar terms, outperforming the MSCI Emerging Markets Free Index, which increased 6%. The global economic crisis in summer 1998 had only a minor effect on the Tel Aviv stock market.
Volatility on the TASE has been substantially lower than it has been in other emerging markets. Between 1997 and 1999, the TA 100 Index monthly standard deviation averaged some 20%, compared with higher rates - varying between 20% and 110% - in the Greek, Turkish, Polish, Hungarian, Russian and South African markets.
Yair Orgler, Chairman of the Tel Aviv Stock Exchange, said the Exchange's international marketing campaign complements its strategic effort in recent years to bring state-of-the-art trading and clearing systems to Tel Aviv.
"We are committed to meeting the needs of the international financial community," Mr. Orgler said. "The Israeli capital markets offer the global investor an appealing combination of growth and opportunity, coupled with a low risk factor. The country's economic environment is strong: Inflation is calm, the Bank of Israel is gradually reducing interest rates, and the growth potential of our listed companies is substantial, based on their improving results in the past year."
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 opportunities and a full complement of market services, including an elaborate and user-friendly website at www.tase.co.il.
