Koor Rises to 6-Month High as Credit Suisse Gains: Tel Aviv Move
Stock Chart for Koor Industries Ltd (KOR)
Koor Industries Ltd. (KOR) climbed to the highest level in almost six months as the shares of Credit Suisse Group AG (CSGN), the Swiss lender in which the Tel Aviv-based company holds a stake, rallied.
Koor gained 4.1 percent to 50.99 shekels at the 4:30 p.m. close in Tel Aviv, the highest since Aug. 4. That brought the five-day surge to 14 percent. Credit Suisse shares have gained 16 percent in Switzerland over that period. Koor said in November it owns 30.32 million shares of the Swiss bank.
“The fortunes of Koor are linked to those of Credit Suisse,” Noam Pincu, an analyst at Psagot Investment House Ltd. in Tel Aviv said by telephone.
A gauge of European banks was the best performer of the 19 industry groups in the Stoxx Europe 600 Index today as European officials forge ahead with crafting a long-term plan to tackle the region’s debt crisis. Koor, which is 70.11 percent-owned by Discount Investment Corp. (DISI), reported a loss of 2.85 billion shekels ($757 million) in the first nine months of 2011 as the value of its investment in Credit Suisse declined.
The yields on the bonds of IDB Holding Corp. (IDBH), the controlling shareholder of Koor through its ownership of Discount and IDB Development Corp., reached record highs in December amid investor concern about how the holding company will meet its obligations.
“A stronger recovery in Credit Suisse may help lower the yields because it will raise the net asset value of Koor, Discount Investment and IDB Development,” Pincu said. “But it has to be a bigger recovery than this.”
Discount Investment shares advanced 2 percent to 26.85 shekels. IDB Holding shares gained 0.6 percent to 44.47 shekels.
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