Three new real estate indices on the Tel Aviv Stock Exchange • Launch date: February 9 • New financial products arrive on the market following demand from investors
Photo: Joshua Yosef
The Israel Securities Exchange announced the launch of three new real estate indices: the Tel Aviv Construction Index, the Tel Aviv Yield Israel Index and the Tel Aviv Yield Overseas Index, following the new classification of the real estate industry recently decided.
These indices will be joined by the TA Real Estate Index, and upon launch, the Exchange's Real Estate Indices will appoint 4 consecutive indices. The determining date for determining the indices will be the end of trading on January 16, and the compositions themselves will be released a week later. The new ones will be on February 9.
This is a continuation of the stock exchange's recent announcement that by the end of 2019, a change will take effect, under which there will be two new sub-sectors under the Real Estate and Construction sector: a sub-branch that will include yielding real estate companies whose main business in Israel is expected to include 27 companies, shares worth Their total market is about NIS 114 billion; In addition, a sub-sector in which yielding real estate companies will be included, the bulk of their business abroad, which is expected to include 17 stock companies, whose total market value is about NIS 30 billion. This index could also include high-yielding real estate companies that do most of their business abroad, even though a benchmark committee has determined that the company has no real connection to Israel.
In the past year, the stock market index recorded a return of about 70%. The leading company "Ashtrom" recorded a return of more than 200%. Other leading companies are "Parshkovsky", "Leventhal" and "Israel Canada". Demand for additional financial products based on shares of the real estate industry, and the launch of the new indices, is intended to enable investors to invest in rental real estate companies, to make a geographical distinction between yielding real estate in Israel and overseas real estate, and to enable investment in a basket of companies. Building.