Allot Increases Most in Week; Israel-U.S. Stock Index Gains
Allot Communications Ltd. (ALLT) advanced the most in a week on speculation the Israeli maker of high- speed networking equipment will benefit from rising demand for faster mobile-phone networks.
Allot Communications gained 5.8 percent in Nasdaq Stock Market trading yesterday to $17.78, the most since June 28. Shares of the Hod Hasharon, Israel-based company have rallied 318 percent over the past year compared with a 9.3 percent advance for the Bloomberg Israel-US 25 Index of the largest Israeli-based companies traded in New York.
U.S. mobile-phone companies are trying to improve their services as the prevalence of data-hungry devices such as the Apple Inc. iPhone has led to network congestion. AT&T Inc. (T) and Verizon Wireless are rolling out so-called fourth-generation networks that boast speeds about four times faster than existing 3G technology.
“Allot has very good proprietary technology and seems to have made the fastest progress with the global wireless carriers,” said Daniel Cummins, an analyst at ThinkEquity LLC in New York, who has a “buy” recommendation on the shares. “Allot has a technology that more telecommunications and enterprise organizations will need going forward.”
The Bloomberg Israel-US 25 Index increased for a seventh day, climbing 0.3 percent to 620.67 yesterday, the longest winning streak since March 25. Israel’s benchmark TA-25 Index advanced 0.8 percent to 1,248.55 at 3:09 p.m. in Tel Aviv. The Tel Aviv measure has lost 5.8 percent this year, or 2.3 percent in dollar terms.
Allot shares in the U.S. have gained 53 percent this year, compared with the 60 percent rally in dollar terms for the Tel Aviv-traded stocks. Allot rose 6.3 percent to 60.82 shekels, or the equivalent of $17.85 today.
SodaStream International Ltd. (SODA), the Airport City, Israel- based producer of soda makers, surged 8.8 percent to $76.58 in New York yesterday. The company is establishing a manufacturing facility in the south of the country that is expected to be ready during 2013, according to a PRNewswire statement yesterday.
“The demand for our products is increasing, and we continue to take steps to ensure that we are ahead of capacity to meet that demand,” Chief Executive Officer Daniel Birnbaum said in the statement.
American depositary receipts of Teva Pharmaceutical Industries Ltd. (TEVA), the world’s biggest generic-drug company, rose 0.1 percent to $48.99 in New York. The Israeli-traded shares were unchanged at 166.40 shekels today.
Internet Gold-Golden Lines Ltd. (IGLD), the Petach-Tikva, Israel based Internet service provider, fell 2.4 percent to $22.03 in New York. The Tel Aviv-traded shares were unchanged percent to 76.72 shekels, the equivalent of $22.51.
Israel’s two-year bonds advanced for a fourth day today, pushing yields to the lowest level since March 21, while the shekel strengthened against the dollar.
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