| NONRESIDENTS |
| Net portfolio investment by nonresidents on the Tel Aviv Stock Exchange (TASE) moderated in December, and their direct investments increased. |
| Investment in Israeli shares: In December 2009 nonresidents invested a net $60 million in Israeli shares traded on the TASE, following net investments of $560 million in November. Most of the investment was in shares of companies in the chemical and pharmaceutical industries. |
| Bonds: in December nonresidents’ sold Israeli government bonds on the TASE, mostly Shahar-type unindexed bonds, This was partially offset by investment of $210 million in makam, so that in total there were net sales of $50 million, compared with investments of $430 million in November. Nonresidents invested a net $95 million in Israeli government bonds traded abroad, compared with sales of $250 million in November. |
| Nonresidents' net direct investment in Israel via the banking system totaled $530 million in December, most of which was in the biotechnology industry. Direct investments increased at a faster rate in recent months than previously. |
| RESIDENTS |
| There was continued investment in securities traded abroad, primarily by institutional investors. |
| Shares: In December Israelis’ net investment in foreign shares traded abroad amounted to $1.2 billion, compared with an average monthly $570 million in January–November 2009. Most (about $900 million) of this was invested by institutional investors, and the rest by households and the business sector. In 2009 investment in foreign shares abroad by institutional investors, particularly provident funds and insurance companies, has increased considerably, reaching a cumulative total of $5.3 billion, compared with $2 billion in 2008 and $1 billion in 2007. |
| Bonds: Israelis invested a net $210 million in foreign bonds in December 2009, most of which was by the business sector. |
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