Tel Aviv Stock Exchange boasts 'peak year' for 2020

Israel’s bourse reported significant increases in daily trading volume and IPO activity, along with mixed stock results.

DECEMBER 22, 2020 14:03

Updated: DECEMBER 22, 2020 16:03

An electronic board displaying market data is seen at the entrance of the Tel Aviv Stock Exchange, in Tel Aviv, Israel (photo credit: REUTERS) — An electronic board displaying market data is seen at the entrance of the Tel Aviv Stock Exchange, in Tel Aviv, Israel

(photo credit: REUTERS)

Despite the challenges of the coronavirus pandemic, the Tel Aviv Stock Exchange on Tuesday said 2020 was a “peak year” with significant increases in daily trading volume and IPO activity.

Israel’s bourse had mixed results. The TA Tech-Elite and TA-Technology indices rose 35% and 31%, respectively, while the benchmark TA-35 and the Tel Aviv Real Estate indices declined 15.4% and 12.5%, respectively.

Daily trading volume on the exchange was NIS 1.9 billion, an increase of 43% over the average volume in 2019 and 36% over the average for the previous three years. Average daily trading was especially volatile when the coronavirus outbreak started in March and reached NIS 2.9b., while in May through December it was NIS 1.7b.

Some 27 new companies conducted IPOs during the year, the highest since 2007. Of those, 19 were hi-tech companies, and eight raised money at a market cap in excess of NIS 1b. Dozens of hi-tech companies are expected to join the TASE in the coming months, the exchange said.

“This year marked a significant milestone in the strengthening of ties between the TASE and local hi-tech, as a record number of new technology companies joined the TASE, with dozens more to come,” TASE CEO Ittai Ben-Zeev said. “Our strategy over the past few years has laid the foundation that allows TASE to better reflect the success of Israeli hi-tech and serve as a home for those companies.”

Nearly 135,000 new trading accounts were opened during the year, compared with fewer than 100,000 in 2019, with a 150% surge in the number of accounts opened in investment houses. TASE attributed this to increased PR activity.

Total capital raised on the equities market amounted to NIS 16.3b. in 2020, compared with NIS 13.3b. in 2019. Total public offerings amounted to NIS 12b. in 2020, up 45% compared with the previous year.

Overall, more than 225 offerings and private placements were recorded this year, compared with 158 in 2019. Currently, 454 companies are listed on TASE, with an aggregate market cap of NIS 819b.

Five new indices were launched in 2020. Two focused on environmentally friendly green companies, and three tracked real estate.

Last week, the exchange announced the signing of a collaboration agreement with the Abu Dhabi Securities Exchange (ADX), which will allow companies in the United Arab Emirates to collaborate with Israel firms for the first time.

Separately, the TASE on Tuesday said it had the first two listings for its innovative electronic platform TASE UP, which allows companies and funds to raise money from accredited and institutional investors and remain private: Group 11, the venture-capital fund of the investor Dovi Frances, which aims to raise $100 million; and start-up company Veev, with a goal of raising $50m.