By Barry Davidson
Tuesday 3 November 2009
Jerusalem--The Bank of Israel (BOI) announced in a report today that foreign investments in Israel rose in September.
This contradicts the gloomy predictions for a slow International recovery from the current economic recession that is in its second year.
Yesterday, it was reported on U.S. Fox News Channel that U.S. Government Treasury Secretary Timothy Geithner announced that U.S. recovery and job growth will not pick up for sometime.
However, according to the BOI report, such is not the case in Israel.
According to the BOI report there was growth in
nonresidents who investmened in government bonds on the Tel Aviv Stock Exchange (TASE). I
On the TASE, in September 2009, nonresidents invested about $150 million in stock trading. This along with investments of $440 million in August.
According to the BOI, most of the investments were in form of company shares in the communications, chemical and pharmaceutical industries.
On the International front, non-Israeli residents invested a net $170 million in Israeli shares traded abroad on International stock exchanges, such as the Nasdaq.
Turning to bonds trading, foreign investment in Israeli government bonds rose in September, to about $850 million. About $440 million of the investments occured in the unindexed Shahar and $410 million in Makam.
Internationally, there were sales of approximately $60 million of bonds. And as a result, there were redemption of bonds which had reached maturity.
BOI maintained that about $65 million was invested in private bonds, both in Israel and abroad.
With respect to the Israeli banking system, foreign direct investment in September was about $230 million. Most of the investment was in high-tech industries.
