Israel’s stock’s reclassified upwards

From May 2010, the MSCI Barra world stocks index will upgrade Israel to the status of  “developed market”. Kudos indeed.

There is a down side. Some brokers hold an Israeli portfolio, because it currently represents around 13% of the European-Asia “emerging” market scene. Its anticipated weighting in its new home will be under 0.5%. A concern has been voiced that some brokers may sell initially as they consider how the new postioning impinges on their portfolios.

Despite that lag, this move is definitely an encouraging sign; a pointer in the overall confidence that the international financial community holds in Israel.

In parallel, both the Finance Ministry and the private sector will have to strive even further to continue to deserve that trust. Power plays over how to run the country’s banks or public spats surrounding the high salaries earned at the Bank of Israel are not what anybody needs to see or feel. 

The world has asked the Israeli children to move on to more sophisticated games. The country’s financial leaders must show that they are up to the challenge.

Explore posts in the same categories: Business, Israel

Tags: , , , ,

You can comment below, or link to this permanent URL from your own site.

One Comment on “Israel’s stock’s reclassified upwards”

  1. Michael Horesh Says:

    Merrill Lynch have given a longer term and optimistic analysis. See

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: