The Tel Aviv Stock Exchange on Sunday announced it would soon launch a new industry-oriented index. The move has been approved by the Economy and Industry Ministry.
Trading on the TA-Industry index is expected to begin on April 25.
The new index will include over 80 companies whose combined market value exceeds 250 billion shekels ($71 billion).
TA-Industry it will be dominated by a cross section of high-tech companies in the fields of defense, electronics and optics, pharmaceuticals and metals, but it is also expected to include several large fashion and clothing companies, to ensure maximum trading diversity.
According to the TASE, technology companies make up 28% of the index, biomed firms make up 20% of its, and traditional industries comprise 52%, which reflects Israel's status as a global innovation leader.
The Economy and Industry Ministry and the TASE expect the new index to provide an additional incentive for private companies to examine nonbank and nongovernment financing channels, such as raising capital through IPOs.
"Israeli industry is known for its breakthrough innovations. Not only is it a source of national pride, but it's also a worthwhile investment," Economy and Industry Minister Eli Cohen said Sunday.
"Launching this index will provide a new investment avenue for local and international bodies. In light of recent economic shifts, Israeli creativity is bound to draw investors, making IPOs more attractive. This, in turn, will be translated into investment in the Israeli economy, further driving its growth," he said.
Tel Aviv Stock Exchange CEO Itai Ben-Zeev said he was "proud to join the Economy and Industry Ministry in introducing this new index, which reflects the strength of the Israeli industry, and we hope it will encourage Israeli companies, both from the traditional and high-tech industries, to pursue offerings on the Tel Aviv Stock Exchange.
"The new index also meets the needs of the market and the demand for additional investment avenues, and it also provides an opportunity for [TASE] exposure to small and medium-sized companies. We hope that the Economy and Industry Ministry will continue to promote the industry, for the benefit of the investing public and the Israeli economy as a whole," he said.
