Aftershocks of Lehman Brothers crash hit TASE
Tel Aviv Stock Exchange experiences slump over dramatic bankruptcy announcement by US financial giant. TA-25 drops 2.78%, TA-100 loses 2.89%; Dollar falls 0.96%, trades at NIS 3.587
The Tel Aviv Stock Exchange experienced shaky trading trends Monday, in wake of American holdings giant Lehman Brothers' announcement it was filing for bankruptcy.
Lehman Brothers issued an official statement to Wall Street, saying it was filing for Chapter-11. Various attempts made in the past few months to salvage the158-year-old have firm failed.
TASE trading was also affected by a second dramatic Wall Street announcement saying Bank of America Corp. had acquired the controlling interest on Merrill Lynch & Co. Inc, in a $50 billion all-stock transaction.
Worried in Wall Street (Illustration: AP)
Monday afternoon saw TA-25 drop 2.78% to 909.31 points. TA-100 lost 2.89% (828.48 points) and the Tel-tech fell 3.61% (220.61 points). TA-Real Estate plunged 3.63%, reaching 303 points.
In foreign currency trade, the dollar lost 0.96%, trading at NIS 3.587. The euro added 0.01% and was traded at NIS 5.108.
The European markets were shaken by Lehman Brothers' announcement as well: The UK's FTSE lost 3.7%, France's CAC 40 dropped 4% and Berlin's DAX slumped 3.35%.
The Asian markets followed suit, as India's NSE dropped 5.6% and the Bombay Stock Exchange fell 6%. Taiwan's Stock exchange lost 4.1% and the Australian Stock Exchange noted a 1.5% loss. No trading was noted in the Japanese and Chinese markets due to national holidays.
Calcalist and AP contributed to this report
