“With prices at their current reasonable levels, our outlook remains positive. These received a boost last week by the publication of the positive US economic data, which is providing a tail wind for markets in both Israel and the US, with indices reaching new highs,” writes Union Bank of Israel (TASE: UNON) in its weekly review.
Union Bank repeats its advice to investors not to increase the proportion of their investments in Israeli securities above 50% of their securities portfolio. The other 50% should be diversified across markets overseas.
As to the Bank of Israel interest rate, which currently stands at 4.25%, with a negative differential between the local interest rate and that of the US Federal Reserve, Union Bank says that as a consequence there has so far been no significant increase at all in the shekel-dollar exchange rate. Union Bank expects the interest rate to remain unchanged next month, although attention should be paid to the direction that shekel-dollar trading could take.
The shekel is likely to trade at NIS 4.235-4.27/$ this week. The closest support level for the exchange rate is NIS 4.176/$, while the closest resistance level is NIS 4.26/$.
Published by Globes [online], Israel business news - www.globes.co.il - on February 11, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007