Jerusalem Economy Gains on Recovery Bets: Tel Aviv Mover
Jerusalem Economy (ECJM) Ltd. climbed to the highest level in almost two years as investors bet the underlying business at Israel’s third-largest real estate developer by assets is recovering and boosting access to cash.
The shares of the company led by businessman Eliezer Fishman rose 4.8 percent to 29.93 shekels, the highest level since November 2011, at the close in Tel Aviv. Israel’s TA-100 Index increased 0.3 percent.
Jerusalem Economy in June agreed to sell Canada’s Bridlewood mall for C$63 million ($61 million). In April, another unit of Jerusalem Economy sold a New York project for $61 million with a partner. London-traded Mirland Development Corporation (MLD) Plc, of which Jerusalem Economy holds a 30.5 percent stake, on July 30 raised 240 million shekels ($67 million) in bonds. The shares of Mirland, whose investments in Eastern Europe were hit by the 2008 economic crisis, have gained 50 percent this year.
“The company has been making a slow comeback, selling off assets and its businesses have been able to return to the debt market,” Shay Lipman, an analyst at I.B.I.-Israel Brokerage in Tel Aviv, said by telephone. “It’s an overall improving backdrop for the company.” Lipman recommends investors buy the stock.
Jerusalem Economy shares have gained 59 percent this year compared with a 5 percent increase in the TA-100 Index. Lipman recommends investors buy the stock.
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