Export from Israel to the world (most of it is no longer carried out in containers).
According to export stocks, investors are still not looking at the Israeli economy through the glasses of the reform (Photo: ShutterStock)
The spins in favor of and against the legal reform and its effect on the Israeli economy, do not affect the data of the shares of the largest exporters in Israel, which show the strength of the Israeli economy and the prism through which foreign investors look at it.
The seven major exporters traded on the Tel Aviv Stock Exchange, 6 of which are traded as duals - that is, also on the American stock exchanges, have risen by about 3% on average since the beginning of February, while the main indices on the local stock exchange have fallen by about 2%-6% (see table) for the same period.
So it is true that even this figure is not a guarantee for the robustness of Israeli exports, in the event that the legal legislation will move from theoretical discussions and early votes to more advanced stages, but at least for the time being, not as it was shouted.
The shares of the major exporters that are traded on the Tel Aviv Stock Exchange (photo: Walla! system, no)
The highest rate of increase since the beginning of February was recorded in the share of Nice
,
which develops and produces software for managing customer relations and risk management.
The company's stock increased by 10.2% on the Tel Aviv Stock Exchange, as of February 22...
Nice was selected during the last month as a technological leader in several fields and as a digital market leader for 2022, and one of its products is ranked first overall in the Frost Radar growth index (an index built by Frost & Sullivan international consulting and research, which examines companies' innovation and their ability to leverage it for growth).
The company's stock continued to rise throughout the month, even after it reported in early February that the investment giant Blackrock, which owns about 5% of its shares, sold about 36.9% of its holding in the company, in the form of about 1.89 million shares, for about NIS 1.2 billion.
CEO of the company,
Barak Elam
, came out publicly against the legal reform last January through a post he published, and two days ago again, this time through an opinion column in which he claimed that the government had declared war on the high-tech industry.
His claims were mainly in the form of the way Israel will be seen in the eyes of foreign investors following the reform that weakens the status of the courts.
NICE's stock is identified as Israeli and is also traded on the US Nasdaq stock exchange, so it is relatively easy for foreign investors to get to it.
At this time, it should be noted, the company's stock is actually responding well in the markets, and investors are responding more to its performance than to what is happening in Israel.
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CEO of NICE, Barak Elam. He came out against the reform, but the company's stock is registering an impressive increase (Photo: CRC MEDIA)
enough for the kibbutz?
Next to NICE, 5 other companies are traded as duals on the US stock exchanges, and precisely those operating in the fields of hardware and technology have also received adequate increases (see table). Next to them in the table is another exporter, named Mitronics, which produces robots for cleaning pools. Mitronics, which is owned by Kibbutz Emek
Jezreel
( 56.13%), has increased by 2.87% since the beginning of the month, and expresses the confidence that investors have in the Israeli company, which has managed to become an international success in its field. The company did not report during this period any unusual positive or negative events. In contrast, the share of the Israeli pharmaceutical company - formerly
Teva
-
fell At 1.48% for the same period, Harhadah which miraculously represents a certain recovery from the sharp decline after the publication of the financial statements at the beginning of the month.
The decrease came as a result of a drop of approximately 5% in its revenues compared to the corresponding quarter in 2021, in addition to an operating loss of $885 million compared to a profit in the corresponding period and the explanation given by officers for the increase in financing costs for its debts.
The share of
ICL
(formerly ICL) also experienced a decrease, which stood at 3.09% for the period under review, and this despite the strong financial reports it presented. The company's share began a downward trend attributed mainly to the sharp drop in commodity prices - which were the source of the increase in its shares when they reached a peak during the first half of 2022.
Ministry of Nature in Kfar Saba.
The decline following the publication of the reports moderated (Photo: Sivan Faraj)
Not yet because of the reform
It should be noted that the damage to the investments and sales (exports) of the start-up and high-tech companies began with the economic uncertainty and interest rate hikes around the world, and that the legal reform does not help, in their view, in restoring demand.
According to the CBS data, the export of start-up companies increased by 8.2% in 2022, and in light of the economic crisis, the question arises as to whether it will maintain the same level this year as well. Among the multitude of question marks, one thing is certain
- investors look at Israeli companies as a business beacon, and the legal reform, whatever its effect Be that as it may, you still do not enter into their considerations.
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