Discount Bank Drops to Three-Year Low on MSCI Index Announcement

Israel Discount Bank Ltd. (DSCT) dropped to the lowest level in three years after MSCI Inc. (MSCI) said Israel’s third largest bank by assets will be removed from the index provider’s Global Standard Indices.

The shares fell 3.8 percent to 4.425 shekels, the lowest level since May 2009, at 11:12 a.m. in Tel Aviv.

The decline “may be linked to the announcement that the bank shares will be deleted from the MSCI Israel Index,” said Zach Herzog, head of international sales at Psagot Investment House Ltd. in Tel Aviv said by phone today.

MSCI said today it will remove Israel Discount Bank, Cellcom Israel Ltd. (CEL) and Partner Communications Co. from the MSCI Israel Index as of close May 31.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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