Cellcom Israel Ltd. (CEL) rallied the most in almost two weeks on investor bets this year’s decline in Israel’s largest mobile-phone company was overdone.
The shares advanced 4.7 percent, the most since June 4, to 28.16 shekels at 3:58 p.m. in Tel Aviv, taking this year’s decline to 56 percent. Cellcom trades at a multiple of 5.55 times estimated earnings, compared with 10.4 times for the benchmark TA-25 Index.
“At these levels some investors feel the shares are cheap,” said Gilad Alper, a senior analyst at Excellence Nessuah Investment House Ltd. in Ramat Gan.
Minister Benjamin Netanyahu’s government introduced regulations for mobile providers and holding companies to boost competition in the industry. Cellcom said last month first- quarter net income dropped 43 percent to 173 million shekels ($45 million).
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