Feb. 2 (Bloomberg) -- Israeli technology stocks rallied in New York, led by Allot Communications Ltd., after chipmaker Broadcom Corp.’s forecast for sales to exceed analysts’ estimates bolstered the outlook for the industry.
Allot, the Hod Hasharon, Israel-based manufacturer of equipment for monitoring Internet traffic, climbed 3.1 percent to $16.25. Radware Ltd. jumped after earnings beat forecasts. The Bloomberg Israel-US 25 Index of the largest U.S.-traded Israeli companies climbed to the highest level in six months, rising 1.8 percent to 93.46. The TA-25 Index slipped 0.2 percent to 1,121.27 at the 4:30 p.m. close in Tel Aviv, bringing the decline for the week to 0.8 percent.
Israeli technology companies may benefit from the same demand that led Irvine, California-based Broadcom, the maker of chips that help mobile devices connect to the Internet, to say sales could reach as much as $1.8 billion in the first quarter, said Ashok Kumar, an analyst at Maxim Group LLC in New York. Texas Instruments Inc., the world’s largest maker of analog chips, said last month that the market for components has bottomed out.
“Broadcom is a good bellwether for the semiconductor industry,” Kumar said by telephone. “It’s a good indication of strong product momentum and that the end-markets seem to be resilient despite concern about macro events.”
The Bloomberg Israel-US Index followed U.S. stocks higher yesterday as signs that manufacturing is strengthening around the world pushed the Standard & Poor’s 500 Index up 0.9 percent.
Manufacturing in the U.S. grew in January at the fastest pace in seven months. Output in China rose last month as the world’s second-biggest economy withstood weaker exports driven by the European debt crisis. A gauge of factory output in the euro area beat estimates in January.
Allot climbed 0.9 percent to 60.33 shekels, or the equivalent of $16.19, in Tel Aviv today.
EZchip Semiconductor Ltd., the Yokneam, Israel-based maker of network processors, rose for the first time in six days, adding 1.1 percent to $33.05 in New York. The Tel Aviv shares gained 0.7 percent to 123.20 shekels, the equivalent of $33.07, today.
“Enterprise spending seems to be picking up again, which has been a big concern for a lot of companies,” Jay Srivatsa, an analyst at Chardan Capital Markets LLC in New York, said by phone. “The sentiment seems to be better with Broadcom showing improvement and Texas Instruments saying the market has bottomed out.”
Radware, the developer of security software and cloud- computing technology, led gains on the Bloomberg Israel-US Index, climbing 3.7 percent to $32.64.
The company yesterday reported fourth-quarter earnings of 42 cents per shares, beating the 37-cent average estimate of three analysts surveyed by Bloomberg.
“Our string of attack mitigation successes that have protected high-profile public and private sector customers is key to this growth,” Chief Executive Officer Roy Zisapel said in a statement yesterday.
Partner Communication Co., Israel’s second-largest mobile phone provider, climbed 2.1 percent to $8.36. The Tel Aviv shares advanced 3.5 percent to 31.85 shekels, or the equivalent of $8.55, today.
Scailex Corp., the controlling shareholder in Partner, has chosen Lazard Ltd. and Deutsche Bank AG to lead the sale of its stake in Partner, according to a statement to the Tel Aviv Stock Exchange after the market closed yesterday. Deutsche will provide a credit line of up to $1 billion to the buyer, it said.
The company is also considering a deal in which Partner will become a privately held company, the statement said.
Teva Pharmaceutical Industries Ltd., the world’s largest maker of generic drugs, gained 2 percent to $46.04. The Tel Aviv shares climbed 0.8 percent to 170 shekels, or the equivalent of $45.57. The 47-cent premium for the New York shares was the biggest among dually-traded companies. The shares rose 1.4 percent to 172.40 shekels, or $46.28 today.
Shares of the Petach Tikva, Israel-based medical company sank 23 percent last year, the most since 2006.
“A lot of people have started to take a fresh look at the drugmaker given the underperformance in 2011,” Randall Stanicky, an analyst at Canaccord Genuity Corp., said by telephone from New York.
Israel, whose population of 7.8 million is similar in size to Switzerland’s, has about 60 companies traded on the Nasdaq Stock Market, the most of any country outside the U.S. after China. The nation is also home to more startup companies per capita than the U.S.
--With assistance from Susan Lerner in Jerusalem. Editors: Brendan Walsh, Marie-France Han
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