Capital flows in the financial account, December 2012
Sales of makam, and continued direct investment
Bonds and makam: In December 2012, nonresidents sold around $200 million net in makam, while net activity in government bonds was small. Preliminary figures for January indicate sales of about $160 million in makam and net investments of about $320 million in government bonds. In December, nonresidents invested about $200 million in government bonds traded abroad.
In 2012, non-residents sold a net $3.6 billion in makam and about $230 million in shekel-denominated government bonds.
Israeli shares: In December, nonresidents sold around a net $90 million in shares on the Tel Aviv Stock Exchange (TASE), following net sales of about $110 million in November. Preliminary figures for January indicate net investment of about $310 million in TASE-traded shares by nonresidents.
In 2012, there were net investments of about $430 million in TASE-traded shares, and of about $660 million in Israeli shares traded abroad.
Nonresidents' direct investment: In December, nonresidents' net direct investment in Israel via domestic banks totaled about $400 million, most of which was concentrated in high tech industries.
Increase in investment in foreign shares by institutional investors
Shares: In December, net investments by Israeli residents in foreign shares traded abroad totaled about $900 million—about $660 million by institutional investors, about $180 million by the business sector, and about $60 million by households.
In 2012, Israeli residents invested about $4.6 billion in foreign shares traded abroad, including about $2.8 billion by institutional investors—a lower amount than in previous years, when the average for 2009–2011 was $4.7 billion.
Bonds: In December, residents sold a net $50 million in tradable bonds abroad—sales of about $100 million by institutional investors were partially offset by net investments of about $50 million by household investors and the business sector.
In 2012 Israeli residents invested about $1.6 billion in foreign bonds.
Direct investment abroad: In December, residents sold about $570 million net in direct investment abroad, essentially the sale of an investment abroad by one company in the banking sector.