The Tel Aviv Stock Exchange (TASE) was up strongly by early afternoon, after the "English opening" regulation delayed the start due to premarket gains of over 2.5% by the Tel Aviv 25 and Tel Aviv 100 indices. The gains follow yesterday's strong rally on Wall Street, which spread to Asian markets today.
The Tel Aviv 25 Index is up 2.2% by early afternoon to 1,096 points and the Tel Aviv 100 Index is up 2.2% to 1,024 points.
Energy companies are driving the market today, after Noble Energy Inc. (NYSE: NBL) announced the initial analysis of the 2D and 3D seismic surveys on the Leviathan structure, saying that potential natural reserves could reach 30 trillion cubic feet in its east Mediterranean prospects. The company's Israeli partners in the licenses that make up Leviathan, Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L), as well as Ratio Oil Exploration (1992) LP (TASE:RATI.L), were all up sharply. Tel Aviv 25 Index companies Delek Group was up 8.1%, Avner rose 11.3%, Delek Drilling rose 10.7%, and Ratio, which is on the Mid-Cap 50 Index, rose 39.8%, boosting the index 5.3%.
"Globes" technical analyst Ziv Segal says that while Asian and European markets were stable and Wall Street rose yesterday, the Tel Aviv 25 Index fell below 1,090 points, and was entering a downward trend, in contrast to indications a week ago. He added that the index was below its 200-day and 21-day moving averages, and passed down through the 89-day moving average.
Segal believes that, based on the 1,060 point support level for the S&P 500 Index, the Tel Aviv 25 Index may have support at 1,040 points, not because of any resemblance between the two figures, but because of the graph structure. Any movement below 1,040 points will sharpen the slide, and the next support level will be 1,010 points.
Published by Globes [online], Israel business news - www.globes-online.com - on June 3, 2010
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