Nonresidents' investments in Israel and Israelis' investments abroad in December 2008

8.2.2009
 
Nonresidents’ investments in Israel and Israelis' investments abroad in December 2008
 
 
Nonresidents investments: A halt to realizations on the TASE (Tel Aviv Stock Exchange), and steady direct investments
  In December nonresidents' investments in the Tel Aviv Stock Exchange totaled $40 million, following significant realizations of about $1 billion in October and $400 million in November. Most of the investment was in chemical companies and bank shares.
  Nonresidents’ direct investment in December totaled about $580 million, more than in each of the two previous months, and more than the monthly average in the previous two years. The investments were mainly in high-tech industries.
  Israelis' investments abroad: Realizations of tradable financial investments
  Israelis realized a net $276 million of their portfolio investments abroad in December––sales of about $290 million worth of bonds, further to the realizations in the previous months, mainly by households and institutional investors, and on the other hand a net investment of $14 million in shares.
  The effect of a large purchase of a foreign company on the December data of capital flows. The completion of the purchase of a foreign company by an Israeli pharmaceutical company resulted in the recording of residents' direct investment abroad of $3.5 billion, and concurrently an investment of $3.2 billion by nonresidents in shares traded abroad of the Israel company.[1]
Detailed, updated tables with annual, quarterly and monthly data of activity on Israel’s financial account are attached:
 
1 The total value of the purchase was $7.5 billion, of which $3.5 billion was reflected in the balance of payments as direct investment, as described above, and $4 billion was not so reflected as it was financed from assets of the Israeli company held abroad and as it was implemented via subsidiaries abroad.
 
Table 1:Nonresident Investment in Israel and Resident Investment Abroad
(net transactions, $ million)
  Year January to Quarters Months1
2007 Sep. 2008 Q1 2008 Q2 2008 Q3 2008 Oct. 08 Nov. 08 Dec. 08
1 Nonresident investment 15,025 7,816 3,140 2,647 2,029      
By investment type
Direct investment 9,665 8,302 2,758 2,485 3,059      
of which: through banking system 22 5,821 4,559 1,300 1,365 1,894 444 348 584
Portfolio investment 2,160 -170 376 610 -1,157 -1,195 -603 3,278
of which: securities issued on TASE 899 -1,253 -14 150 -1,390 -1,333 -397 93
equity 1,453 -23 475 746 -1,244 -1,074 -400 40
bonds -554 -1,230 -489 -596 -146 -259 3 53
Other investment 3,199 -316 5 -448 127      
2 Resident investment abroad 16,264 10,779 3,574 4,620 2,585      
By investment type
Direct investment 7,047 4,137 1,522 998 1,617      
of which: through banking system 22 2,932 1,767 611 231 925 235 -3 3,554
of which: business sector 3,008 1,843 634 236 973 235 22 3,569
Portfolio investment 4,030 -34 -783 1,152 -403 1,126 34 -276
equity 2,199 1,344 -269 866 747 1,336 102 14
bonds 1,830 -1,378 -514 286 -1,150 -210 -68 -290
 


 
​​​