Tel Aviv Stock Exchange Launches New Index: TA-Industrials

On March 23, 2018, the TASE board of directors approved the launch of a new index in conjunction with the Ministry of Economy and Industry.

The new index, called the TA-Industrials Index, will include more than 80 Israeli companies from diverse industrial sectors: pharmaceuticals, electronics and optics, metals and building products, the defense industry, and fashion and clothing.

The market value of the companies to be included in the TA-Industrials Index currently exceeds NIS 260 billion.

The index was launched to provide additional incentives to private industrial companies to consider attracting investors through IPOs on the Israeli stock exchange. It also aims to attract international and domestic investors seeking to invest in the Israeli industry, as well as to enable small and medium-sized Israeli companies to receive greater exposure.

The index, which will officially launch on April 25, 2018, is characterized by the dominance of high-tech companies. Shares from the high-tech sector account for about 48% of the index, while the ratio of traditional industrial companies is 52%.

With the objective of increasing the exposure of small and medium-sized industrial manufacturers, and in order to ensure broad diversification, a maximum weight cap of 3% has been set for a company’s share on the index. Among the companies to be listed on the TA-Industrials Index are Teva, Perrigo, Frutarom, Elbit Systems, Tower Semiconductors, Ormat Technologies, Strauss, Israel Chemicals, and Delta.