TA-100 to reshuffle
TASE's criteria for TA-100 to change in 2008, leading companies may be dropped from index's list if they fail to meet new standards
Some 27 companies of those traded in the TA-100 may find themselves dropped from the index when its list in updated is January 2008.
Published since 1992, the TA-100 is one of the Tel Aviv Stock Exchange's leading indices, consisting of the 100 stocks with the highest market value.
The reason for the change is a decision made by the Tel Aviv Stock Exchange's management in March, to change the criteria under which companies are named eligible to trade on the TA-100.
As part of the new criteria, 25% of the shares of any company named in TASE's leading indices, such as the TA-100, the Tel-Tech and the TA-Real Estate 15, would have to be publicly owned.
Companies included in the TA-100 now have two choices: they can either increase public holdings – a risky move that may drive stock prices down; or they can be written off the TA-100 – which may dwindle investors' interest in their stock – a move they naturally wish to avoid.
Some of the companies that are at risk to being dropped from the TA-100 are Nochi Dankner's IDB, Eliezer Fishman's Darban Investments and Industrial Buildings Corp and Lev Leviev's Africa Israel Housing, as well as the Staruss Group, Gazit and The Phoenix.
