Israel Stocks: Avgol, EZchip, Leumi, Hapoalim, Shemen, Babylon

TA-25 Index gains 0.9% at 4:30 pm close in Tel Aviv.

ADVANCERS * Avgol (AVGL) +2.2%; Israel Petrochemical says in talks with foreign investment fund to sell stake in co. * EZchip (EZCH) +7% * Babylon (BBYL) +5%; Calcalist says Co. seeking to raise $1b via Nasdaq listing; co. official declines to comment * Israel Chemicals (ICL) +4.3%; heat waves in Southern Europe and U.S. drought are withering corn crops * Shemen (SMOG) +23%, gains 42% in two days after co. yday said accord signed with Israel Defense Ministry to allow drilling in the Yam 3 field * Silicom (SILC) + 7.2%; U.S. shrs rose 6.7% yday as 2Q rev. advanced 11% and net income increased 16% yoy

DECLINERS * Bank Leumi (LUMI) -2.2 %; Bank Hapoalim (POLI) -2%; Bank Discount (DSCT) -0.4%; Citigroup sees outlook for Israeli banks worsening on local economy, higher capital requirements

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