Israeli stocks rebounded from their biggest decline in almost three weeks as concern eased that violence would increase following the Palestinian bid for statehood at the United Nations last week.
Strauss Group Ltd. (STRS), the country’s second-largest food maker, advanced to the highest since Sept. 1. Paz Oil Co. increased for the third time in four days. The TA-25 Index, which lost 4.3 percent Sept. 22, climbed 2.1 percent to 1,060.29 at the 4:30 p.m. close in Tel Aviv. The measure also advanced after the Bloomberg Israel-US 25 Index posted its first gain in five days on Sept. 23. The gauge of the most-traded Israeli companies in New York advanced as global equities rebounded amid speculation European governments will act to prevent a financial crisis.
“Going into the weekend there was a lot of uncertainty regarding the Palestinian UN bid and the reaction on the Palestinian streets,” Saar Golan, a trader at Clal Finance Brokerage Ltd. in Tel Aviv, said by telephone. “After the speeches, there was relative quiet in the West Bank and the Gaza Strip and perhaps come cautious optimism regarding future talks.”
Palestinian Authority President Mahmoud Abbas presented his case at the UN for recognition of Palestine as a member state, while Israeli Prime Minister Benjamin Netanyahu called for further talks. Israeli and Palestinian security forces bolstered their presence in the West Bank prior to the meeting on concern the statehood bid would spark violence.
Strauss jumped 5.3 percent to 46.44 shekels. Paz increased 4.5 percent to 487.30 shekels.
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