Melisron Falls Fifth Day Amid Concern of Israel Retail Dropby
Mall developer and operator Melisron Ltd., owned by the billionaire Ofer family, extended losses after its worst October in seven years on concerns that security tensions in Israel could hurt retail sales.
“There is a slowdown in sales at malls because of the security situation, and that is putting pressure on the shares,” Noam Pincu, an analyst at Psagot Investment House Ltd. in Tel Aviv, said by phone. “The market is challenging and may hurt profitability in the longer term.” Pincu has a neutral rating on the share, with a price target of 153 shekels.
Nielsen Holdings Plc reported last week that supermarket sales in the first two weeks of October were 7 percent lower than the average so far this year while sales of food rose, “indicating that customers are staying at home,” Nielsen said. Globes reported that total retail sales may have fallen by as much as 27 percent. Palestinian stabbing, shooting and stoning attacks in October have led to the deaths of at least 10 Israelis and more than 50 Palestinians, most of them attackers. Bank of Israel Governor Karnit Flug said in an interview on Oct. 29 that a protracted wave of violence could impact private consumption and tourism.
Melisron stock, which is on track to advance for a fourth consecutive year, has been the worst performer on the TA-25 index in the past month, dropping 8.8 percent as the gauge advanced 5.8 percent. The shares declined 1.8 percent to 132.70 shekels at the close in Tel Aviv.