Israeli Telecom Shares Perform Worst as Competition to Toughen

Israeli phone companies were the worst performers on the local stock exchange in the second quarter as the government opens up the 30 billion-shekel ($8.7 billion) telecommunications market for greater competition.

The 12-member telecommunications index, including Bezeq Israeli Telecommunication Corp., Cellcom Israel Ltd. and Hot Telecommunication System, fell 15.4 percent since the measure was started in April. That compares with a 13.3 percent drop in TA Insurance, 6.5 percent fall in TA Banking Index, 3.5 percent retreat in both TA Oil & Gas and TA-Technology indexes. The benchmark TA-25 index declined 7 percent in the same period and the Nasdaq Telecommunications Index lost more than 6 percent.