TEL AVIV (Aug. 21)
After closing for two days last week to give Israeli investors a chance to absorb the news of the country’s first-ever capital gains tax, the Tel Aviv Stock Exchange re-opened Sunday to some roller-coaster trading.
Trading began an hour later than usual Sunday morning, after traders were informed that buying and selling would be carried out for one day without the usual safeguarding procedures that limit trading to a 10 percent rise or fall.
Last week’s two-day suspension of trading came after Finance Minister Avraham Shohat made the surprise announcement that a 10 percent capital gains tax would go into effect on Jan. 1.
Trading began Sunday with some panic selling.
But stocks regained some of their losses when institutional investors and pension funds stepped in to take advantage of plummeting prices.