Tel Aviv Stock Exchange gears up for semiannual indices reshuffle. New index inclusion guidelines may force 14 of Israeli market's leading companies out of TA-100
The semiannual Tel Aviv Stock Exchange index update stands to leave 14 of Israel's largest
companies out of the prestigious TA-100 index, Ynet has learned.
The TA-100 is one of the Tel Aviv Stock Exchange's leading indices and has been running for the past 15 years. It consists of the top 100 stocks with the highest market value and receives daily media coverage.
Changes
TA-100 to reshuffle / Yaniv Yaacov
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
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.
Under the new guideline, 25% of the shares of any company included in the TASE's leading indices, such as the TA-100, TA-25 and TA-75, must be publicly owned.
Over the past few days, some of the TA-100 members, such as Delek Real Estate, have been selling stocks in an effort to meet the new criteria.
The fluctuation caused in the index due to the availability of leading stocks and their somewhat lower selling prices, has benefited mostly the institutional investors, who are finally able to buy into major companies, at the proverbial "floor level prices."
Those most likely to be written out of the TA-100 are Migdal Insurance, IDB Holding, Israel Petrochemical Enterprises, Scailex, Electra Real Estate, British Israel and Industrial Buildings.
RSS
