Tel Aviv Stock Market Reaches Historic High
AFP
February 15, 2007
ON A HIGH: The Tel Aviv stock market, fueled by strong economic growth and low-level interest rates, reached an historic 1001.68 points Wednesday.
(Reuters)
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JERUSALEM -- The Tel Aviv stock market, fueled by strong economic growth and low-level interest rates, has smashed through the psychological threshold of 1,000 points for the first time in history.
The TA-100 indice, which groups the exchange's top 100 listed companies, Wednesday peaked at 1,001.68 points, a growth of 8.68 percent so far this year.
Since being established 15 years ago, the indice has grown 900 percent.
The blue-chip indice TA-25 was not far behind, closing at 992.48 points, and plotting a growth of 7.1 percent in 2007.
Analysts attribute the boom to the strong performance of the Israeli economy. Gross domestic product growth is on track to reach 5 percent in 2007, according to estimates of the Bank of Israel.
International ratings company Standard & Poor's Wednesday raised its credit rating for Israel from "stable" to "positive."
Kobi Navon from Clal Finance, a leading investment brokers, denied the growth on the stock market was a "speculative bubble."
"The economy is in a very good shape, companies are posting very positive results, and inflation is totally under control," he said.
Shlomo Maoz, from rival brokerage firm Excellence Nessuah, said continued low interest rates favor company investments, and encourage people to switch from low-return shekel savings accounts to stocks and property investments.
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