The Tel-Aviv Stock Exchange Launches a New Index - TA-Dual Listing

Rhea-AI Summary

The Tel Aviv Stock Exchange (TASE) announced the launch of the new TA-Dual Listing Index and the upgrade of the Insurance Shares and Convertibles Index to TA-Insurance. The TA-Dual Listing Index aims to attract dual-listed Israeli companies, enhancing liquidity and trading hours from 9 am to 11 pm. The index will include 44 shares with a market cap of NIS 270 billion. The TA-Insurance Index, specifically focusing on insurance sector shares, will cater to both institutional and retail investors. Both indices will launch on June 6, 2021.

Positive

• Launch of TA-Dual Listing Index enhances trading opportunities for dual-listed companies.
• TA-Dual Listing Index promotes liquidity, with 44 shares and a market cap of NIS 270 billion.
• Upgraded TA-Insurance Index attracts institutional and retail investors focusing on local insurance companies.

Negative

• None.

TEL AVIV, Israel, April 28, 2021 /PRNewswire/ -- The Tel-Aviv Stock Exchange (TASE: TASE) announced today the launch of a new index - TA-Dual Listing and the upgrading of the "Insurance Shares and Convertibles" Index to include insurance sector shares from the Tamar Universe and serve as a real-time index for index-tracking products, with a weight cap of 20% per share in the index.

New Index - TA-Dual Listing - The Appeal of Trading in Dual Listed Shares

For more than two decades, TASE has been dedicating significant efforts to encouraging Israeli companies that chose to be listed overseas to also list their shares on TASE. Dual listed companies enjoy regulatory exemptions, both as regarding listing requirements and the reporting of corporate events. They also enjoy a dedicated fast-track entrance to TASE's indices (a track that was later expanded to include companies performing an IPO).

Most dual listed shares are listed in New York and the parallel trading in Israel expands their weekly trading to 6 days and stretches their trading hours from 9 am to 11 pm (10 pm on Israeli standard time) on Mondays through Thursdays. The market cap of the dual listed shares that are included in the Tamar Universe (the scope of shares that qualify for inclusion in the indices) is close to NIS 280 billion, with a free float rate of more than 80%. Of the 44 Israeli oriented dual listed shares included in the Tamar Universe - 26 shares are included in TA-125, of which 12 are included in TA-35 and 11 are included in TA-SME60, allowing for a particularly diverse composition of the Index.

An index that comprises dual listed shares will underscore TASE's pivotal role as a hub for Israeli companies listed overseas that have not yet listed on TASE. Furthermore, the high tradability of dual listed companies is an attractive feature for investors, which value liquidity. It should be noted that the trading on TASE represents 32% of total trading on TASE and overseas. Dual listed shares enjoy exposure to both Israeli and foreign investors as well as a broader analytical coverage, as international companies operating in multiple markets globally.

In view of the aforesaid, TASE has decided to launch the TA-Dual Listing Index that will comprise the dual listed shares from the Tamar Universe. Weight limit in index - 5% per share.

Presented below are the characteristics of the index, based on the simulation performed on March 18, 2021 (see Appendix A):

1. Number of shares in the index - 44
2. Market cap - NIS 270 billion
3. Free float value - NIS 219 billion
4. Overlap with the TA-Global BlueTech Index, the dominant sectors of the index are Technology and Biomed, with a combined weight of 85%.
5. Composition of the index, by market cap indices:
   a.  Shares included in TA-35 - 12
   b.  Shares included in TA-90 - 14
   c.  Shares included in TA-SME60 - 11
   d.  Shares included in TA-Growth - 7

TA-Dual Listing index will be launched on June 6, 2021 (on the Monthly Rebalance Date in June).

Upgraded Index: TA-Insurance - In Response to the Demand for a Dedicated Insurance Index

The "Insurance Shares and Convertibles" Index (an end-of-day index) was launched in January 1984 as a benchmark index that comprises shares, convertible bonds and warrants. In November 2007, KSM launched an ETN on the index (which was converted into an ETF in November 2018 under Amendment 28 of the Securities Authority). The total AUM in the ETF is NIS 265 million, however this index is not suitable for index-tracking products. For example, the methodology of the index allows the inclusion of new convertible securities of insurance companies ("new generation" equity indices include shares only). Additionally, the index does not contain mechanisms that are necessary for the tracking of the index, such as IANS (Index Adjusted Number of Shares), reflection of the free float rate of the security's weight in the index, and solid principles for the joining of and removal from the index, which are essential for product issuer and tracking products.

Insurance is one of the principal sectors of the Israeli economy, with significant presence on TASE. Israeli insurance companies have been attracting growing interest from investors, with several material investments being secured, including growing interest by Insuretech investors. Unlike the TA Insurance-Plus Index, which also includes shares of companies from the extended Finance Sector (insurance shares represent 60% of the index), TA-Insurance is exclusively comprised of shares of insurance companies and is expected to draw high demand from both institutional investors, which are often bound by regulatory restrictions that prohibit their direct exposure to insurance shares at the desired scope, and from the retail investors, which will be able to enjoy exposure to investment products on an index that is dedicated to the local insurance companies.

Accordingly, TASE has decided to upgrade the old-standing "Insurance Shares and Convertibles" Index, applying the end-of-day principles, into another real-time index of the Tamar Universe, renaming it "TA-Insurance" - Simulation of the index, as performed on March 18, 2021 (see Appendix B):

The index will comprise insurance sector shares that are included in the Tamar Universe, with a weight cap of 20% per share in the index, and will be governed by the methodology that applies to Tamar Universe indices.

TA-Insurance index will be launched on June 6, 2021 (on the Monthly Rebalance Date in June).

The record date for determining the composition of the two aforesaid indices will be the end of trading on May 13, 2021 (Record Date for the June Rebalance).

Appendix A

TA-Dual (effective for March 18, 2021)
No.	Security no.	Share	Weight	Market cap in NIS millions
1	629014	Teva	5.00%	40,483
2	1130699	Perrigo	5.00%	18,499
3	1129543	OPKO Health	5.00%	10,396
4	273011	Nice	5.00%	47,432
5	1134402	Ormat Techno	5.00%	14,706
6	1123017	LivePerson	5.00%	12,396
7	1081124	Elbit Systems	5.00%	20,230
8	1082379	Tower	5.00%	10,431
9	1084557	Nova	5.00%	7,873
10	281014	ICL	5.00%	25,000
11	1155290	Energean	4.66%	7,062
12	256016	Formula Systems	4.01%	4,553
13	1095264	Camtek	3.86%	4,392
14	1087659	Sapiens	3.84%	5,821
15	1082965	AudioCodes	2.79%	3,169
16	1134139	Kenon	2.72%	5,501
17	1085208	Compugen	2.63%	2,394
18	1083484	Partner	2.56%	2,910
19	1099654	Allot	2.04%	1,852
20	1082650	RADA	1.99%	2,027
21	1082510	Gilat	1.99%	2,262
22	1082312	Magic	1.81%	2,737
23	1158823	BATM	1.74%	1,975
24	199018	Foresight	1.65%	1,510
25	1095819	Perion Network	1.53%	1,735
26	1160829	PowerFleet	1.13%	1,028
27	1102458	Itamar	1.11%	1,262
28	1141324	Oramed Pharm	0.93%	843
29	1082635	Ellomay	0.85%	1,312
30	1136365	Lineage Therapeutics	0.83%	944
31	1094119	Kamada	0.81%	921
32	1105055	Evogene	0.69%	692
33	1158997	Enlivex	0.57%	805
34	1121730	Pluristem	0.49%	543
35	1120609	Protalix	0.47%	742
36	1101518	BioLine	0.46%	430
37	1082858	Willi-Food International	0.41%	1,059
38	1162734	BiomX	0.38%	574
39	1080720	Meatech	0.32%	418
40	765016	Purple Biotech	0.29%	267
41	1100718	BrainsWay	0.28%	481
42	1082726	TAT Techno	0.08%	166
43	1094168	My Size	0.04%	39
44	1135516	Optibase	0.04%	196
			100%	270,070

 

Appendix B

TA-Insurance (effective for March 18, 2021)
No.	Security no.	Share	Weight	Market cap in NIS millions
1	767012	The Phoenix	20.00%	6,748
2	585018	Harel Investments	20.00%	6,815
3	224014	Clal Insurance Business	20.00%	3,710
4	566018	Menora Miv. Hold.	16.77%	4,367
5	1081165	Migdal Insurance	12.19%	4,081
6	1129501	IDI Insurance	8.60%	1,680
7	1173228	weSure Global Tech	1.35%	452
8	209015	Ayalon	1.10%	367
			100%	28,220

 

Contact:
Orna Goren
Head of Communication and Public Relations Unit
Tel: +972-76-816-0405
tase.ir@tase.co.il

 

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SOURCE The Tel Aviv Stock Exchange Ltd.

FAQ

What is the TA-Dual Listing Index?

The TA-Dual Listing Index is a new index launched by TASE to include dual-listed shares, aimed at improving liquidity and trading opportunities.

When will the TA-Dual Listing Index be launched?

The TA-Dual Listing Index will be launched on June 6, 2021.

What is the market cap of the TA-Dual Listing Index?

The market cap of the TA-Dual Listing Index is approximately NIS 270 billion.

What changes were made to the Insurance Shares and Convertibles Index?

The index was upgraded to TA-Insurance, which will focus exclusively on shares of insurance companies.

When will the TA-Insurance Index be launched?

The TA-Insurance Index will be launched on June 6, 2021.