Yitzhak Tshuva (R) and Nochi Dankner
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Major holdings companies leading sharp declines on Sunday's market: Discount Investments loses 17.5%, Africa Israel tumbles 16%, Fishman's JEC weakened by 12%, Tshuva's Delek Group slips 8% and Israel Corporation under Ofer family sheds 6.5%
Most of the shares on the Tel Aviv Stock Exchange slipped Sunday following sharp declines on global markets and the US rating downgrade. Despite the fact that declines are across the board in all of the sectors of the Israeli economy, it is evident that the most prominent declines are on part of the "tycoon shares" belonging to some of the market's major holding companies under the control of the economy's chiefs.
Dakners' IDB Holdings shares lost 9.9% by noon – twice as much as leading indices. It should be mentioned, however, that the company's shares have been dealing with a negative momentum, costing the company 53% of its value or NIS 2.5 billion ($710 million).
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IDB's major subsidiaries Clal Production and Discount Investments are loosing altitude; Shares of Clal Production which holds Clal Biotechnology Industries and Mashav which holds the Nesher cement monopoly among others, lost 9.7% and Discount Investments which holds Cellcom cellular provider, Netvision communications corporation and a long list of other companies – dropped 17.5% by noon – the steepest drop among the TA 25 companies.
IDB bonds are slipping as well and shed some 7% and are trading at a yield to maturity of 7%-9%.
But not only is Dankner losing altitude – Lev Leviev's Africa Israel was socked with a 15.9% loss with subsidiary Denya Cebus weakening by 17.9%. Africa's long bonds, the Series 26 bond, dropped 9% and hit an approximately
13% yield to maturity.
Yitzhak Tshuva is sailing the same rough waters – Delek Group under his control lost 9% but Delek Real Estate which is in initial stages of a debt arrangement, dropped 10%. Due to its huge acquisition spree under CEO Ilik Rozanski, Delek is worth NIS 81 million ($23 million) whereas in its heyday was worth over NIS 4.5 billion ($1.28 million). Delek Group bonds dropped by some 4% and reflect a yield to maturity of some 10%.
Israel Corporation under Idan Ofer lost 7.95% on Sunday and subsidiary ICL held the second largest turnover with a 7.9% fall although it had announced today its new contract in India. Israel Corporation lost "only" 0.8% with its yield to maturity reaching 4.1%.
JEC under control of Eliezer Fishman lost 12.8% and Industrial Building Corporation (IBC) shed 7.3%. JEC bonds reached a yield to maturity of 10%.
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