Weekly Review: 28/8- 1/9/2011

Trading during the final week of August culminated in price increases in all leading indices, not unlike the trend in markets worldwide.

• The TA-25 index, which gained 4.0% over the week, is still 14.6% lower than its beginning-of-the-year level, following a 16% increase in 2010.
• The TA-100 index was up 4.3%, is still some 16.9% lower than at the beginning of the year, following a 15% increase in 2010.
• The TA Real Estate-15 index jumped 7.3% over the week. The TA-Banks index and the BlueTech 50 index gained 5.0% and 4.3% respectively.
• The Governor of the Bank of Israel left September interest rates unchanged for the fourth consecutive month at 3.25%.
• Figures released this week by the Central Bureau of Statistics indicate that unemployment has fallen from 6% in the first quarter to 5.5% in the second quarter of this year. This is in contrast to the average 2010 unemployment rate of 6.6%.
• The NIS/dollar exchange rate on 1 September came to 3.574 NIS, a weekly decline of 1.4% against the shekel and bringing the year-to-date appreciation of the dollar to 0.7%, after depreciating 6% in 2010.
The NIS/Euro exchange rate on 1 September came to 5.1053 NIS down 2.5% over last week. The Euro has appreciated 7.8% against the NIS since the beginning of the year, after depreciating 12.9% in 2010.