"The low trading volumes and the low standard deviation indicate that we're very near bottom," Gaon Trade CEO Moran Zur told "Globes" today. "Investors have already realized that things are bad and will continue to be bad. They're sick of it, and the pessimism for 2009 is already priced in to the market."
Tel Aviv 25 Index and Banking Index options for December expired today. Tel Aviv 25 Index options closed at 638.69 points, up 0.97% on yesterday's close. Trading volume totaled NIS 740 million, compared with the NIS 1.15 billion trading volume for the November expiry.
The Tel Aviv 25 Index fell 48% in 2008, and is down 5.24% so far this month. Trading volume in December was low, particularly in the run up for Tel Aviv 25 Index options expiry. The market seesawed during the month, but there were no extraordinary sharp swings and the standard deviation was normal.
Zur added, "The day is near when we'll see investors' confidence in the stock market return. Institutional investors cannot continue to allow themselves such low returns from their bonds, and they'll again buy shares in good companies that have been hurt by the crisis."
Zur believes that, despite the ongoing deterioration in the economy, the capital market will begin to recover by mid-2009.
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2008
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