Israeli Stock Index Climbs to Record, Led by Teva on Forecast

Israel's benchmark stock index closed at a record high for the seventh time this year, led by Teva Pharmaceutical Industries Ltd. after the company forecast higher earnings.

Israel Discount Bank Ltd. also climbed after UBS AG recommended investors buy the lender's shares.

The TA-25 Index added 15.35, or 1.6 percent, to 981.64 as 16 stocks advanced and nine declined. Investors bought and sold about 2.15 billion shekels ($507 million) in shares and convertibles, 21 percent more than the average daily trading volume in January.

Teva jumped 8.40 shekels, or 5.7 percent, to 155.70 shekels, the biggest gain since Feb. 28, 2005. The world's largest generic-drug maker said earnings per share will reach $2.50 in 2008, up from $2.07 to $2.19 this year.

Fourth-quarter profit rose 51 percent to $460 million, or 56 cents a share, on U.S. sales of cholesterol and depression treatments and income from the new Ivax unit, Teva said.

Israel Discount Bank, the nation's third-largest lender, climbed 0.51 shekel, or 5.6 percent, to 9.55 shekels, the highest since Jan. 1. UBS initiated coverage of the stock with a ``buy'' recommendation.

Discount ``offers investors a compelling way to play a strong retail franchise focused on customer service,'' Joseph Wolf, an analyst at UBS in Herzlia, Israel, wrote in an e-mailed report today. Wolf estimates that Discount shares will reach 12 shekels in the next 12 months.

The following shares also gained or fell in Israel. Stock symbols follow company names.

Africa Israel Investments Ltd. (AFIL IT), Israel's largest property developer by market value, dropped for a third day, losing 4 shekels, or 1.1 percent, to 350 shekels.

Shares of property developers have declined since Toll Brothers Inc., the largest U.S. builder of luxury homes, last week said orders plunged and London-based HSBC Holdings Plc said bad home loans increased in the U.S.

Africa Israel, together with partners, is developing eight residential projects in New York City.

Bank Leumi Le-Israel Ltd. (LUMI IT), the country's second- largest lender, advanced 0.54 shekel, or 3.2 percent, to 17.61 shekels, the biggest gain since October. Cerberus-Gabriel, a partnership of two New York buyout funds that own 10 percent of Leumi, will win approval from the Bank of Israel to control the lender, Haaretz said, without citing anyone. A spokeswoman for the bank declined to confirm or deny the report.

FMS Enterprises Migun Ltd. (FBRT IT) surged 21.90 shekels, or 17 percent, to 153.10 shekels. The maker of material to armor vehicles said it won an order to supply raw materials to Honeywell International Inc., the world's largest maker of airplane controls.

Israel Chemicals Ltd. (ICL IT), which extracts minerals form the Dead Sea to make fertilizers, gained 0.58 shekel, or 2.4 percent, to 24.73 shekels. Israel Corp. (ILCO IT), a holding company that controls ICL, rose 40 shekels, or 1.9 percent, to 2,113 shekels.

Don Carson and Steve Byrne, New York-based analysts at Merrill Lynch & Co., raised earnings estimates for companies including Potash Corp. of Saskatchewan, the world's largest fertilizer producer, and Mosaic Co., the No. 2 in North America.

Nice Systems Ltd. (NICE IT), a maker of digital-recording products, rose 3.70 shekels, or 2.7 percent, to 139.30 shekels. Verint Systems Inc., whose software helps companies analyze their performance, agreed yesterday to buy Witness Systems Inc. for about $950 million to add more programs aimed at call centers. Israeli newspapers including Ma'ariv and Haaretz previously reported that Nice was looking to acquire Witness.

``This is good news for Nice, as it reduces competition in the market, and on relief Nice won't have to pay a high price for Witness as earlier reported in the press,'' Clal Finance wrote in an e-mailed report yesterday.

source:www.bloomberg.com