(Updates share price in second paragraph.)
Oct. 16 (Bloomberg) -- Allot Communications Ltd. soared the most since the shares started trading in Tel Aviv after the U.S.-listed stock rose 22 percent last week on speculation profit of technology companies will improve on demand for smartphones.
The stock of Israel’s biggest maker of high-speed networking equipment climbed 13 percent, the most since the December listing, to 46.92 shekels, or the equivalent of $12.83 at the 2:45 p.m. close in Tel Aviv. The U.S. shares closed at $12.93 on Oct. 14. Israel’s market was shut for a holiday since the end of trading on Oct. 11.
Israeli technology companies, which raised $569 million in capital during the second quarter, the most in two years, are benefiting from rising Internet traffic and increased online video streaming. Allot will report adjusted third-quarter earnings on Nov. 1 of 10 cents per share, according to the median estimate of eight analysts surveyed by Bloomberg.
“Allot’s business is exposed to the high-growth service provider mobile infrastructure market,” Catharine Trebnick, an analyst at Northland Securities Inc. in Minneapolis, wrote in an e-mailed report dated Oct. 12. Trebnick rated Allot’s shares “outperform” in her initial coverage of the company.
Twenty-four of the 25 companies in the Bloomberg Israel-US 25 Index gained last week as the measure soared 6.3 percent, beating the Standard & Poor’s 500 Index’s 6 percent advance. Global stocks rallied on Oct. 14, extending the biggest weekly rally since July 2009, as the Group of 20 began talks to tame Europe’s debt crisis and U.S. retail sales and Google Inc.’s results beat estimates.
The Hod Hasharon, Israel-based company’s customers include Virgin Media Inc. and billionaire Carlos Slim’s fixed-line carrier, Telefonos de Mexico SAB. Its technology allows Internet providers to differentiate network traffic and provide tailored plans to their clients as demand for faster data surges.
--Editors: Claudia Maedler, Digby Lidstone
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