THE DETROIT JEWISH NEWS
Friday, April 10, 1981
Tel Aviv Stock Exchange Booms
By SIMON GRIVER
Ap
5 LBS. OF MATZO
World Zionist Press Service
TEL AVIV — Investing
in the Tel Aviv Stock Ex-
change can be a precarious
business. But despite- a re-
cent traumatic tumble, in
which some shares lost 50
percent of their value in one
day, investors who have
held stocks for the last year
are still showing a hand-
some profit.
Much of the losses in the
market's mini crash were
regained in a subsequent
rally. Last year, stocks were
about the best investment
A recent afternoon at the Tel Aviv stock ex-
in the country, rising well
over the rate of iniiation. In change.
January, prices soared an every afternoon the 108 institutions with the latest
average 32 percent. But shares quoted on the mar- developments as trading is
what goes up must come ket are auctioned off to the evened out through the day.
down and many saw the re- highest bidders, in these
cent fall as inevitable:
two areas. This is a drasti-
I. Israelis will tell you about cally different procedure
a neighbor who bought a from the continuous trading
new car or color television in most Western stock ex-
with his "winnings" and a changes. Each morning the
fifth of the country now own brokers contact their clients
shares. Disturbingly, many to find out whether they
treat their stocks as a gam- want to buy or sell any of
ble rather than an invest- their shares.
ment.
All the orders are math-
With a new high-rise ematically matched by a
stock market under con- central computer that cal-
struction and to be com- culates the overall number
pleted next year, Natan of shares to be bought or
Shiloh, deputy general sold. A stock is marked
manager of the stock ex- either "buyers only" or
change proclaims a bright "sellers only" and the price
future for brokers, investors rises or drops accordingly
and industry. But he regrets until all the shares of that
that so few Israeli com- company are bought or sold.
panies are prepared to go This new high or low be-
public and raise extra capi- comes the share's new price
tal on the stock market.
for trading the next day.
"Entrepreneurs are re-
The shares are auctioned
luctant to relinquish any in turn and within seconds
part of the control of their millions of shekels can be
businesses," he says. "They added or wiped off the capi-
would rather not have the tal value of a share, forcing
extra cash than to carry out the price up or down five or
the obligations of a quoted 10 percent or even more.
company, like opening The swift and dramatic na-
books to the public. The ture of trading attracts
availability of cheap gov- many gamblers to the stock
ernment loans also inhibits market. Some shareholders
the stock market. If more Is- turn up to the visitor's gal-
raeli companies were ac- lery at the time their shares
countable to the public, are to be auctioned.
then the country would
Natan Shiloh acknowl-
have a far healthier edges the problem. "Many
economy."
Israelis do not look upon
At the moment the banks their shares as long term
dominate the stock market. investments," he says.
They own nearly 70 percent "Some are nothing but short
of the shares and are the term gamblers. But the
market's main brokers, trend is changing as more
handling 90 percent of people are investing in
transactions. In fact it was a mutual funds where skilled
bank, the Anglo-Palestine, investors select the best
that founded the stock ex- shares for their clients."
Much of the drama will
change in 1935. It received
official government recog- soon be drawn out of the
stock market as continuous
nition in 1953.
trading is introduced. A
The stock exchange trad- radio network will be intro-
ing floor is divided into two duced to link up the coun-
alves. For several hours try's brokers and financial
with every set of Mattresses
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Terrorist Killed in Gaza
TEL AVIV (JTA) — An
Arab terrorist said to have
headed the Israel security
service's "Top 10" list was
killed in a shoot-out with
soldiers who tried to arrest
him recently, the army said.
Rafik Silmi was said to
have been responsible for
most 'of the murders and
terrorist activity in the
Gaza Strip during the past
year. A resident of a camp
near Gaza, he infiltrated
back into the area at the be-
ginning of 1980 and repor-
tedly carried out a number
of murders and grenade at-
tacks usually on his own but
sometimes with the help of
local residents.
When soldiers discovered
his whereabouts and went
to arrest him he opened fire
on them and was killed in
an exchange of fire.
Named to JNF
Warning The Surgeon General Has Determined
That Cigarette SMoking Is Dangerous toYour Health.
NEW YORK — Raphael
Rothstein has been ap-
pointed director of public re-
lations for the Jewish Na-
tional Fund of America.
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