Israeli Stocks: Don't Head For The Bunkers

For Arie Nessim, head of the capital markets division at Israel's Bank Leumi, the sleepless nights began on July 15, when Scitex Corp., the jewel of Israel's high-tech industry, jolted investors by announcing that second-quarter earnings would be about one-third lower than expected. Scitex' stock, which trades only in New York, fell nearly $10, to 28 3/8. The bombshell triggered a sell-off of other Israeli stocks--in Tel Aviv as well as New York.

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