The Tel Aviv Stock Exchange To Launch The Tel-Tech Index

The Tel Aviv Stock Exchange announced that it would launch Tel-Tech, a new index for high-tech listed companies, on April 2. Tel-Tech reflects the performance of 44 listed companies from the electronics, computers and life sciences sectors and publicly traded venture capital funds as well. In 1999, the Tel-Tech Index would have returned some 160%, compared with the TA 100 Index, which increased 63%. Like other TASE indices, Tel-Tech will be weighted by the market capitalization of its components, but the weightings will be capped at 6%. The minimum market value required for Tel-Tech eligibility is $10 million. Ronit Harel Ben-Ze'ev, head of the TASE Economic and Listings Department, said, "The new Tel-Tech index will increase the public exposure of TASE-listed high-tech companies. It will also serve as a benchmark index for local and international investors who wish to track Israel's fast-growing technology sector." During January and February 2000, the TASE added nine new listings, and it expects dozens more in the next few months. The Exchange also said it expects new dual listings after Finance Minister, Avraham Shochat, instructed his staff to complete an amendment to the Securities Law, which aims to encourage U.S.-listed Israeli companies to dual-list on the TASE. Close to 100 Israeli companies are listed on U.S. markets; Israel thus has more companies listed on U.S. exchanges than any other foreign country except Canada. Ms. Harel Ben Ze'ev said that "new dual-listings would add enormous value to the local equity market. More quality companies, complying with the high standards of U.S. markets, would boost trading volumes on the TASE. Dual-listing would enable European investors to buy Israeli high-tech stocks during convenient hours and at the Tel Aviv Stock Exchange's low fees." 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.