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The Tel Aviv Stock Exchange management convened its annual press conference today (Wed., 26th Dec.) to review 2007, and to present the trends observed in the economy as well as in the stock exchange.
2007 was the fifth year in which trading volumes rose to new heights. The TASE continued to serve as a central source of financing growth:- The TASE is becoming a major non-bank credit alternative as companies raised more than 25 $ billion this year - 5 $ billion were raised through equities (an increase of 85% compared with the 2006) and 21 $ billion were raised through bonds (an increase of 90% compared with 2006).
- 56 New companies raised more than 2.5 $ billion in shares (IPO's) this year, among them 20 are Hi-Tech (R&D) firms.
- Trading volumes increased markedly to a daily average of 0.5 $ billion in shares (55% increase compared with 2006) and 0.8 $ billion in bonds - an increase of more than 100%.
- The ETFs market continued to sprout: 150 ETFs were added. At present 240 ETFs are listed in Tel Aviv, and comprise 18% of the trading volume in shares and 10% of the trading volume in non-government bonds. The public's holdings in ETFs has reached 6 $ billion.
- The Tel Bond-20 index, launched this year, is a success. Today the total value of index products on the Tel Bond-20 is 0.9 $ billion.
- The TASE adapted its indexes to international standards. From 2008 a 25% of the shares held by the public become precondition for eligibility to join an index; and the weight of each company will be calculated according to the public float.
- Market making in shares continued to gain momentum. Today seven TASE members make markets for more than 400 securities.
During the first half of 2008, the Derivatives Clearing House of the TASE will be issuing options on the most liquid shares in the TASE.
Regarding globalization, this year the TASE made two major steps forward: Signing cooperation agreements (through MOU's) with the London Stock Exchange and with Nasdaq. The TASE held conferences for investors in London and New York to promote foreign investments, and also signed an agreement to create technological links for investors located overseas to trade in Tel Aviv.
The TASE also helped the Bank of Israel set up a state-of-the-art settlements system, which was inaugurated in the summer of 2007. The new system introduces high international standards and reduces the TASE clearing houses' risk.
Saul Bronfeld, Chairman of the TASE Board of Directors, commented that the year 2007 had been one of the best for the Israeli economy, as demonstrated by the rapid pace of economic growth, the government's fiscal discipline and price stability. Share prices on the TASE reflected the robust status of Israel's economy, Mr Bronfeld added. "The positive developments in the capital market raised trading volumes and new issues, and retested the human and technological infrastructure of the stock exchange," he said. "The TASE team met the challenge, and answered the needs of all users of TASE services swiftly and flexibly."
Ester Levanon, Chief Executive of the TASE, said that 2007 had been a turning point regarding globalization. “We strive to advance our vision to make Israel an integral part of the global market” she said. “TASE’s goal is to make Tel-Aviv an attractive venue for foreign investors, as well as the preferred alternative for companies floating stock for the first time. We aim to encourage Israeli companies to dual-list in Tel Aviv, and to attract leading brokerage firms in the world to become remote members of the TASE."
Click here to view the TASE presentation.
