Bloomberg News

Strauss Set for Biggest Gain Since November: Tel Aviv Mover

June 10, 2012

Strauss Group Ltd. (STRS), an Israeli food producer, headed for its largest gain in six months on investor bets last month’s drop was overdone. Osem Investments Ltd. (OSEM) was poised for its highest close in two weeks.

Strauss advanced 2.8 percent, the most since Nov. 27, to 42.29 shekels at 2:14 p.m. in Tel Aviv. Osem, another food producer, added 2.1 percent to 55.03 shekels. Strauss tumbled 8 percent in May and Osem lost 6.2 percent as a government panel prepared recommendations for the industry. The benchmark TA-25 index gained 0.2 percent.

“The shares are correcting off recent lows,” Gil Dattner, an analyst at Tel Aviv-based Bank Leumi Le-Israel Ltd. (LUMI) said today by phone. “They declined last month on concern about the recommendations and as the general market declined. The recommendations were indeed negative for the sector, but they were not as extensive as feared.”

Protests that started in July against rising prices, from housing to cottage cheese, have spurred Israeli policy makers to propose measures to reduce the cost of living. The panel on food prices recommended on June 4 steps, including easing tariffs on food imports and reducing barriers for additional players, to spur competition in the food-supply sector.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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