Shares drop in Tel Aviv

TA-25 Index fell 0.5 percent to 799.94 on Sunday.

The Tel Aviv-25 Index fell 0.5 percent to 799.94 on Sunday as 20 shares declined and five rose. Investors bought and sold NIS 546 million, or about a half the average daily volume in shares and convertibles. FMS Enterprises Migun fell 27% to NIS 142.60. The company said in its second-quarter report, released after trading on August 31, that the delivery of flak jackets for the US Army had been delayed by an estimated two to three months after samples didn't pass the army's inspection. The company expects that a new version of the jacket will be approved by the army by October. The contract is worth approximately $1.3m. a month in sales after deducting costs for materials, it said. Lipman Electronic Engineering, the world's third-largest maker of electronic-payment gear, rose 10.9% to NIS 120.70. Verifone Holdings, a US maker of electronic-payment equipment that agreed to buy Lipman in April, beat estimates for third-quarter profit and raised its 2006 earnings forecast to a range of $1.07 to $1.08 a share. Lipman shares jumped 10% to $27.72 on September 1 in New York, equal to about NIS 121. Teva Pharmaceuticals Industries, the world's largest generic drugmaker, rose 0.9% to NIS 153.20. Richard Gussow, an analyst at Excellence Nessuah Securities, raised his estimate for 2006 earnings per share in an August 31 report to $2.25 from $2.05 following Teva's second-quarter results. He said he expected shares to be trading at $45 in the next 12 months, up from a previous forecast of $41. (Bloomberg)