Bitter September: The stock market has lost 8% a month, and nearly 25% since the beginning of the year


the stock exchange In Tel Aviv, it has been conspicuous for many months in the lack of performance it exhibits in relation to prominent stock exchanges around the world, especially the American stock exchanges, and the summary of its activity in the past month highlights the gaps that continue to widen. September was quite negative for the TASE-35’s flagship index, and in total it dropped about 8% of its value. This, while according to the TASE data, the leading stock indices on the US stock exchanges weakened by a monthly summary in the range of 3% -6% , And the leading stock exchanges in Europe recorded monthly declines of only about 2% on average.

With the declines in September, Tel Aviv-35 completed a cut of nearly a quarter of its value (23%) from the beginning of 2020 – which without extraordinary surprises, if they come soon, is expected to end as one of the worst years of the Tel Aviv Stock Exchange.

Decreases in the three technology indices

While in previous months there was a relatively large variance between the various stock indices, in September as a whole the negative direction is also noticeable in most Tel Aviv indices, with similar monthly declines (7% -9%) in oil and gas and real estate indices, and a double-digit decline ( About 12%) in the banks index.

The small-cap index (SME60) recorded relatively moderate declines, which amounted to about 4%, while the technology indices, which stood out positively in recent months and traded contrary to the trend even during rather turbulent periods, conclude a negative month, with declines of 4% -6% in the three industry indices. , Tech-Elite and Global in Tech).

The stock exchange notes that trading in September, which took place against the background of the Tishrei holidays, was affected by several factors, including The corona“And the entry of the economy into another closure began on September 18 for at least three weeks.”

Large trading volumes in stocks

The stock market’s turbulent trading continues to produce relatively large trading volumes, and the stock exchange’s data show that the average daily turnover in shares in the past month, including mutual funds, amounted to NIS 1.8 billion – 13% higher than the daily average in August, which is usually considered a month with low trading volumes. Due to summer vacation.

The stock exchange also notes that at the beginning of the month (September 3), “on the eve of the monthly update of the stock indices, the turnover of shares on the stock exchange amounted to about NIS 4 billion – of which about NIS 1.8 billion at the closing stage.”

According to the TASE, in the first nine months of the year, the average daily trading volume in shares is about NIS 1.9 billion, almost 50% higher than the average daily turnover in 2019, which was about NIS 1.3 billion.

Against the background of the poor performance of the indices, the continuing intensive activity in the initial public offering market stands out (IPO), And in a monthly summary, three new companies joined the trade in this way – the Max Stock home product chain, the Israel Shipyards Company and the Unicorn Technology Partnership – which together raised about NIS 900 million. The bulk of the amount, NIS 540 million, was raised by Max Stock through a sale offer by its shareholders, headed by the Apax Fund, while Israel Shipyards raised NIS 340 million – both the largest in terms of market value since the beginning of the year (NIS 1.7 billion each One), while the Unicorn partnership was content with raising about NIS 70 million.

According to the stock exchange, with these acquisitions, the number of new companies that began trading on the stock exchange since the beginning of the year, after their initial public offering, reaches 14 – more than the number of companies joining in 2019, and with several more issues, the annual issuance may break a record decade.

The stock exchange also notes that the total raising in the stock market on a monthly basis reached NIS 2.2 billion, including a share issue of NIS 500 million made by El Al Airlines, and a similar amount raised by the green energy company Energix – which became the “leading recruiter this year. , With a raising of about NIS 1 billion in share issues. “

A negative trend in the bond market as well

The bond market also suffered from a negative trend on a monthly basis, and the stock exchange notes that the index-linked channel, government and corporate, showed declines in the range of 1.5% -2%, “in parallel with the economic slowdown in the economy and negative inflation of 0.6% in January-August 2020.”

Regarding the debt market in September, the TASE notes that “the exception this month are the shekel corporate bonds included in the Tel-Bond Global index, which rose by 0.6% this month.”

Corporate bond raising, according to the stock exchange, decreased in September to NIS 2 billion, “compared to raising an average of NIS 5.5 billion in each of the months of April-August 2020.” In a monthly summary, real estate companies stood out, raising about NIS 1 billion, of which Big raised NIS 400 million, while the finance companies were responsible for raising NIS 600 million, including Phoenix, which also raised NIS 400 million.

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