The Tel Aviv Stock Exchange (TASE) in Tel Aviv (Hebrew: הבורסה לניירות ערך בתל אביב, colloquially known as the Boursa) is Israel's only stock exchange.
The TASE is the only public market for trading securities in Israel. It plays a major role in theIsraeli economy. The precursor to the TASE was the Exchange Bureau for Securities, founded by the Anglo-Palestine Bank (which became Bank Leumi) in 1935. With rapid growth of the Israeli economy after the founding of the state, a formal stock exchange was incorporated and began operations in Tel Aviv in 1953. In 1983 the exchange moved to its current location in Tel Aviv.
TASE lists some 660 companies, about 60 of which are also listed on stock exchanges in other countries. TASE also lists some 180 exchange-traded funds (ETFs), 60 government bonds, 500corporate bonds, and more than 1000 mutual funds.
There are 29 members that make up TASE. The list of members indicates that one of the members is a candidate.
Listing
The Exchange offers four programs under which companies can list on the exchange: three programs for normal operating companies, and an additional venture program for development-stage technology companies. In addition, the TASE has a program for the listing of Limited Partnership Units.
The Dual Listing Law that took effect in October 2000 enables companies listed in the United States or London to dual-list on the TASE without any additional regulatory requirements. As of December 31, 2006, 39 Israeli companies have dual-listed on the TASE, in compliance with this framework.
As of 2007, the total market value of all listed equity securities was $202.7 billion, compared with $161.4 billion in 2006, $122.6 billion in 2005 and $92.1 billion in 2004.
Trading
The TASE has a computerized trading system with real-time information. All shares, convertibles, treasury bills, government bonds, and derivatives are traded via TACT, the TASE’s fully automated trading system.
Trading in shares takes place Sunday through Thursday between 8:30 a.m. and 5:30 p.m. local time (GMT+2), overlapping the American markets for a full hour (9:30 a.m. to 10:30 a.m. EST). Bonds and Treasury bills are traded between 9:30 a.m. and 5:30 p.m. Derivatives trading runs from 9:30 a.m to 5:30 p.m.[2] [3] Dual listing is permitted and many larger Israeli companies are dually listed on the TASE and one or more foreign markets, usually the New York Stock Exchange or NASDAQ, but also the American Stock Exchange and London Stock Exchange.[4]
Between 2003 and 2006, share prices on the TASE rose sharply. The General Index of shares and convertible securities (which is comprised of all shares and convertible securities tradable on the TASE) increased in USD terms by 15.3% in 2006, compared with an increase of 24.3% in 2005 and an increase of 19.5% in the General Index in 2004.
During 2006, the Tel Aviv 100 Index and the Tel Aviv 25 Index increased in USD terms by 22.0% and 22.6% respectively, compared with an increase of 21.1% and 24.7%, respectively, in 2005. The average daily trading for equity securities increased to $326 million during 2006, compared with $223 million in 2005 and $147 million in 2004.
As of July 1, 2007, TASE's largest stocks by market cap were Teva Pharmaceutical Industries ($7.8B), Israel Chemicals ($2.5B), Bank Hapoalim ($1.5B) and Bank Leumi ($1.4B). Daily turnover of shares and convertibles in 2006 was USD 326 million, $387M of bonds, $179M of T-bills and 335M of options and futures. Total market cap at the end of 2006 was $161B shares and convertibles, $98.9B government and corporate bonds and $20.9B T-bills, a total of $281.2B. On July 4, 2007, TASE's benchmark TA-25 index closed at a record 1141.76.
TASE links to the U.S. markets with a direct link with DTC, a subsidiary of the Depository Trust & Clearing Corporation, which facilitates the trading of dually-listed securities.
Active involvement of foreign investors in the TASE began in 1994. In 2006, international holdings increased to 11.6% of the total market capitalization of the shares and convertible securities tradable on the TASE, compared to 11.4% in 2005 and 10.0% in 2004.
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