The year 2022 was bad for the capital market, but there were also stocks that soared.
We found the 5 best (Photo: ShutterStock)
The screens were colored red: stock market indices around the world dried up in 2022 and also dragged the main indices in the Tel Aviv Stock Exchange to conclude sharp declines since the beginning of the year, for example the TA 35 and TA 125 indices which summarize a decrease of 10.5% and 13.2% respectively.
But alongside the drift of declines there are some stocks that continue to win the trust of investors, and move against the current with a jump of tens of percent since the beginning of last January, most of them as a result of the introduction of an alternative activity after the previous one led to the collapse of the company's value.
The five most prominent leaps in the Tel Aviv Stock Exchange examined by Walla Money!
and Meriv businesses, increased by 66% on average since the beginning of the year and added about NIS 3.4 billion to the valuation.
The five winning stocks of 2022 (photo: Walla! system, no)
From cannabis to real estate
The biggest leaper among the top five is the share of Canomed, which sums up a 70.5% increase from the beginning of the year until the day it was measured (see table), and is currently trading at a value of approximately NIS 56 million.
Canomed operated in the field of medical cannabis until last November, but after it failed in its activity in the field alongside the collapse of the entire sector in the Tel Aviv Stock Exchange, its activity was changed to the field of real estate for investment, which increased its value to about NIS 33 million "only" at the beginning of the year.
Who added to its value
The biggest part of this year's opening five in the stock market is the Delek Group, which has jumped about 63% since the beginning of the year, which translates into an increase of about NIS 2.95 billion - about 85% of the total increase in the value of the five. Delek, which operates in the oil and gas sector, is traded on the Tel Stock Exchange Aviv worth about NIS 7.61 billion compared to about NIS 4.66 at the beginning of the year.
Why exactly were they able to get investors to drive them up, while all the others continue to dive without the parachutes of the trading cycles?
Liran Lublin, director of the research department at the IBI investment house
, explains: "Although there is no connecting thread between the sectors shown in the table and the increases experienced by those companies, it is possible to notice that most of them are companies that have recently changed activities.
Canomed can be a good example of this, since the field in which it operated cooled down is significant in the local capital market, and it is enough for an activity to enter that investors find to be better than cannabis in order to achieve an excess return so that this will also affect its stock.
In addition, a more in-depth examination of the companies along the timeline since their new activity entered shows that although their stock is still at a positive return, certainly to the trend In the stock markets, some have already reached a certain peak from which they have just fallen.
This also includes the Delek Group, which, unlike many other activities, has actually benefited since the beginning of the year as a result of the Russia-Ukraine war and the increase in energy and transportation prices.
It should be noted that unlike the other companies that replaced failed activities with others that were not reflected in the stock market, Delek Group experienced an increase that is in line with the increase in its activity.
The only sector that rose this year is the oil and gas sector due to demand that encountered a shortage, and led to the exclusion of the activity of these companies in the markets in the last year.
Moreover, if you look at the Delek Group from the beginning of the year until the peak it reached last August, there is a return of about 138%.
And considering it since January 2021, about two years ago, the yield on its shares has increased by about 300%."
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Three reasons for the increase
Lublin continues to explain New Med Energy's successful year: "There are 3 main factors that influenced the increase in Delek Group's returns: the increase in world oil prices, an increase experienced by the shares of its subsidiary New Med Energy, which owns the Leviathan reservoir , which rose about 28%, and solving the group's debt problem after the Ithaca issue in London."
It should be noted that Ithaca is a subsidiary of the Delek Group operating in the North Sea region, which completed an initial public offering (IPO) of its shares at the beginning of last November on the London Stock Exchange, England, worth $2.9 billion, and since then has decreased by about 18%.
Beside it, the Delek Group also owns about 54% of the shares of New Med Energy, which is traded on the Tel Aviv Stock Exchange with a value of about NIS 9.3 billion, and 16.75% of the shares of Tamar Petroleum, which owns the Tamar and Dalit gas fields and trades in Hazut Beit, worth about NIS 834 million , in Ratio Petroleum, which trades at a value of approximately NIS 74.4 million, and in the chain of gas stations - 'Dalek'.
As part of the increases experienced by the oil and gas sector that Lublin talked about, one can find the shares of Bazen and Petrochemical, which jumped about 56% and 91.8% respectively. We note that Petrochemical did not enter the table due to its being a traded stock still on the preservation list.
Liran Lublin, director of the research department at the IBI investment house (photo: Ilan Bashor)
Lublin continues: "Other activities that have fallen sharply since the impact of the corona virus are also gaining a slight revival among investors, despite the increase in interest rates, and within them you can also find a jump in the shares of activities such as the Israeli airline El Al, which jumped about 57%.
But it is important to note that the macroeconomic environment did not Beneficial with the share channel, which lost its attractiveness in light of the rise in interest rates that opened up other alternatives, which became more viable. Starting with cash that can now be deposited in bank deposits and receive handsome interest on it, to government or corporate bonds.
Along with this, it must be said that there will always be stocks that will succeed in one-off events in generating an excess return that is disconnected from the macro view, but it should be understood that the current market is not the market we have become accustomed to seeing and experiencing in recent years.
Looking ahead, it is not possible to conclude from the increases experienced in the stock market this year anything about what is expected in stocks in 2023, but in my eyes, as a gas and oil analyst, the year 2023 is expected to continue to be good for this sector.
But even here it is worth putting a kind of asterisk, since it is enough for Russia and Ukraine to declare a ceasefire and the sector may look completely different.
For now, one thing can be said for sure, the macro environment will also dictate investment alternatives in 2023 that over the years did not exist."
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The Stock Exchange in Tel Aviv