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June 30, 1995 - Image 41

Resource type:
Text
Publication:
The Detroit Jewish News, 1995-06-30

Disclaimer: Computer generated plain text may have errors. Read more about this.

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Bezek, Sprint
Sign Pact

Jerusalem — Bezek and Sprint
International have signed a
memorandum of understanding
for cooperation in the supply of
international telecommunica-
tions services and developing
new ones. The document was
signed by Bezek director-gener-
al Yitzhak Kaul and Richard
Brolly, Sprint's deputy presi-
dent.
The two firms decided to study
the possibility of cooperating on
supplying data transmission at
various speeds. At the conclusion
of tests, they will look into the
various possibilities with the in-
tention of offering international
data transmission services,
Bezek said.
Mr. Kaul noted the accord does
not give either company any
exclusivity. Bezek, he said, is
now considering various co-
operative proposals with other
large telecommunications com-
panies.

Israel Market
Is Very Attractive

2

Jerusalem — Baring Securities
International has reported that
Israel is now the most attractive
stock market in the world, ac-
cording to a survey done by
British brokers.
"Looking at 50 markets
around the world, Israel comes
out as most attractive. Two or
three weeks ago it was only No.
3," said Michael Howell, Baring,'s
global strategist. Japan and
Brazil were next in the ranking,
while Canada came in last.
"Israel looks to be a cheap
market based on a price/earnings
to five-year growth ratio," Mr.
Howell said to brokers in Tel
Aviv. `There is a force of change
that will cause the price/earnings
multiple to rise."
Israel, with gross domestic
product per capita of around
$14,000, is far from poor, but the
growth potential of the economy
is significant.
The financial savings rate in
Israel is significantly lower than
in other countries, mainly as a
result of a "high-inflation men-
tality," which leads the public
to invest in real assets rather
than financial instruments, he
said.
But with inflation starting to
drop, the public should begin in-
vesting more in the stock mar-
ket, Mr. Howell said. He noted
that most of the public has pulled
out of the market due to last
year's downturn, when prices fell
40 percent.
Since March the market has
started to rise, propelled mostly
by foreign buying.

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41

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