Tower Jumps in N.Y. as Cease-Fire Efforts Boost Outlook
Tower Semiconductor Ltd. (TSEM), the maker of customized chips which has two foundries in Israel, surged the most in two months in New York on speculation a cease-fire in the Gaza Strip will hold.
Migdal Haemek, Israel-based Tower climbed the most since Sept. 4, jumping 9.3 percent to $8.10 at the close of trading in New York. Shares have fallen 14 percent this year. Tower shares traded in Tel Aviv gained 1.7 percent to 31.41 shekels, or the equivalent of $8.01. Tower’s 30-day historic volatility, a measure of stock swings, rose to a five-week high in the U.S.
Egypt and Turkey are working to help end fighting that has killed 96 Palestinians and three Israelis as the escalating conflict threatens the region. Tower, which owns foundries in the U.S. and Japan, will also benefit from a global recovery in personal computers and television sales, according to Chardan Capital Markets LLC.
“A cease-fire is a very big deal for Tower because they have so much production capacity in Israel,” Jay Srivatsa, the managing director of equity research at Chardan, said by phone from New York. “If the market starts to pick up again, foundries such as Tower start to see activity long before PC retailers or handset retailers.”
The Standard & Poor’s 500 (SPX) Index rose the most in two months on better-than-expected U.S. housing data and President Barack Obama’s expression of confidence in budget talk. The S&P gained 2 percent to 1,386.89.
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