In a press release issued today, Tel-Aviv Stock Exchange Ltd. (TASE: TASE) announced its financial results for the third quarter of 2023 that ended on September 30, 2023.
Here are the main trends and data regarding the capital market since the beginning of the year and since the beginning of the war:
As a result of the break-out of the war, the Israeli government has significantly increased its debt issuances in order to meet its wartime expenses since the start of the war. Due to the high costs of debt issuance on the global markets, the majority of the debt was raised on the Tel Aviv Stock Exchange, with a great deal of interest from Israeli institutional investors.. The debt issuances so far have been very successful, totaling NIS 8 billion..On October 4, there were $4 billion in revenue, and $1 billion in revenue.A total of two times the amount that was originally planned. It is expected that another issuance of NIS 14 billion will be made in November, compared to an average of NIS 5 billion a month.Between January 2023 and September 2023, there will be an increase of $6 billion
Between January 2023 and September 2023, there will be an increase of $6 billion
A total of NIS 68 billion has been issued in T-bills since the beginning of the war, in addition to the NIS 304 billion that had been issued since the beginning of the year until September 31. A daily trading volume of T-bills has reached an average of NIS 1.7 billion since the beginning of the war, compared with an average of NIS 1.4 million from January to September. 
Despite the higher interest rates, there was a strong demand for corporate bonds on the market due to the companies refinancing their debt through marketable bonds, despite the higher interest rates. As of the end of September, the business sector raised NIS 62 million since the beginning of the year.There were NIS 7 billion in issuances and private placements of bonds to the public and to institutional investors - compared to the NIS 70 billion last year.The companies raised NIS 4 billion in the corresponding period last year, and since the start of the war to date, they have raised an additional NIS 5 billion..A total of two billion dollars
A total of two billion dollars
In the aftermath of the war, some foreign investors as well as retail investors pulled out of our equity market, which resulted in a decline in the value of our equity market. It must be noted, however, that the decline was nowhere near the level that was experienced at the beginning of the Covid-19 pandemic. In my opinion, this is a testament to the financial maturity of the Israeli investor. There is no doubt that local institutional investors used the opportunity to access local share offerings at more attractive valuations and increased their exposure to the Israeli equity market by twofold.There are nine billion shekels in the budget. On top of that, there is the NIS 3 as well.Their holdings have increased by 1 billion shekels in the first nine months of the year, which is an increase of 1 billion shekels. There have also been significant contributions from local institutional investors and share purchases since the beginning of the war which have also helped moderate the sharp price declines on the stock market since the beginning of the war. In November, retail purchases of mutual funds for the first time since the beginning of the year were resumed for the first time since the beginning of the year.. There has also been a more positive response from the foreign investors in November, most notable of which is Novo Nordisk's announcement to become an interested party in the TASE share with an investment of USD 8 billion.Holding of 5%
Holding of 5%
Trading volumes of shares increased to an average of NIS 2 billion on a daily basis.There has been a total loss of NIS 2 billion since the beginning of the war to date, compared to an average loss of NIS 2 billion for the first nine months of the year. It is also worth noting that the Bond ADV has also increased to NIS 4 since October 7.There was an increase of NIS 3 billion from NIS 3 billion.During the period January-September, 7 billion dollars were spent. It has been reported that from the beginning of the year until the end of September, the average daily trading volume of shares has been NIS 2 billion, compared to NIS 2 billion.As compared to the same period last year, the trading volume of bonds was NIS 3 billion, which is a significant improvement..An increase of NIS 7 billion, as compared to NIS 3 billion.In the corresponding period, the amount was $5 billion.  
  
The strategic plan will continue to be implemented and the capital market will continue to be upgraded
There has been a significant improvement in liquidity for both the companies and the capital market since the reform of the TASE indices was launched in early November. The reform was meant to enhance the indices and boost their AUM, increasing liquidity for both the companies and the capital market.. There is also a lot of progress being made in the reform of the bond market - starting on December 3, the minimum order size will be reduced for government bonds, corporate bonds, and T-bills, following the successful reduction of the minimum order size for shares last year.. In addition, in order to enhance the public's access to COCO bonds, the minimum order size has been lowered, and credit card companies are now able to issue COCO bonds alongside banks and insurance companies.
In addition, in order to enhance the public's access to COCO bonds, the minimum order size has been lowered, and credit card companies are now able to issue COCO bonds alongside banks and insurance companies.
Increasing foreign investors' activity and increasing the number of TASE members - TASE is pleased to announce today the approval of one of the two international clearing houses that are operating in Europe, Clearstream Banking S.A..As a custodial member of the TASE Clearing House[1], CSD have become a member of that clearing house (the second clearing house, Euroclear Bank, also joined the TASE Clearing House as a custodial member in September 2019).. It should be noted that Clearstream is owned entirely by its holding company, Clearstream Holding AG, which is owned by Deutsche Borse AG.. With headquarters in Luxemburg, the company is one of the world's leading financial clearing companies that provides clearing, custodial, and other auxiliary services to facilitate the trading in securities. This includes clearing of local and international financial assets in more than 60 markets worldwide.
With headquarters in Luxemburg, the company is one of the world's leading financial clearing companies that provides clearing, custodial, and other auxiliary services to facilitate the trading in securities. This includes clearing of local and international financial assets in more than 60 markets worldwide.
In addition, Altshuler Shaham has recently been approved as a TASE member and a Clearing House member, and today, the Board of Directors of TASE approved the acceptance of altshare, a fintech software company, as a new TASE member. A total of 120,000 end customers will benefit from trading services offered by the company in Israel and overseas, as well as investors outside its customer base, which will help to boost competition in the Israeli capital markets.
The fintech company, Blink, has joined TASE as a member for the first time as a week ago. TASE believes that more significant members will join in the coming months, thereby increasing competition and improving investors' access to Israeli companies and securities, as well as improving accessibility to Israeli securities and companies.
A report on the Company's share buyback plan is also provided by TASE. During the period starting in May 2022 up to shortly after the reporting date, TASE had purchased a total of ten shares since the start of the buyback plan in May 2022.At an average price of NIS 18 per share, 2 million shares were purchased for a consideration of NIS 186 million.There are 25 shares in the company, representing 9 percent of the company.The Company's issued share capital represents 9% of the total share capital of the company.  In conclusion, all of the buyback plans approved by the Board of Directors are now complete.. The Board of Directors of TASE has instructed the management of the Company to present to the Board of Directors for approval the proposal to acquire TASE shares with a buyback offer of up to NIS 50 million accompanied by the publication of specifications in accordance with the provisions of the Securities Regulations (Tender Offer), 2000, based on TASE's surplus liquidity of NIS 195 million, strong financial performance, organic growth and steady cash inflow, which was demonstrated this quarter as well..  In this regard, it is hereby clarified that, to date, a tender offer buyback has not yet been approved by the Company's Board of Directors. This will be presented to the Company's Board of Directors for approval as soon as possible.
  In this regard, it is hereby clarified that, to date, a tender offer buyback has not yet been approved by the Company's Board of Directors. This will be presented to the Company's Board of Directors for approval as soon as possible.
The following are some highlights of the results for the third quarter of 2023:
The total revenue for the third quarter of 2023 was NIS 95 million.There was a difference of NIS 86 million as compared to NIS 5 million.As compared to the corresponding quarter last year, the company generated 0 million, an increase of 11%, with growth in all areas of the business. A total of NIS 36 million was generated from trading and clearing commissions.95 million, an increase of 11% compared to the corresponding quarter, resulting primarily from an increase in revenue from T-bills, which increased by 4% as a result of higher trading volumes, an increase in T-bill issuances, and the cancellation of the maximum commission on OTC transactions, among other factors.. Furthermore, there has been an increase of 4% due to the revenue generated by mutual funds, and there has been an increase of 2% due to an increase in the trading volumes of derivatives.. A total of 20 NIS was collected in listing fees and levies.The number of Clearing House services increased by 10% to NIS 19 billion, an increase of 3% compared to the same quarter in 2022..There was an increase of 26% in data distribution and connectivity services in 2018, which totaled NIS 18 million.There are one million people in the world
There are one million people in the world
A total of NIS 72.1 million was spent in the third quarter of 2023, up from NIS 68.8 million in the same quarter last year. There was a significant increase in costs as a result of an increase in employee benefits, computer and communication expenses, and a reduction in marketing expenses, which were partly offset by the increase in costs.
There was a net financing income of NIS 2.2 million in Q3 2023.The net financing expenses were NIS 6 million, compared with the net financing expenses of NIS 4 million.There was an increase of 1 million compared to the corresponding quarter last year. This quarter's transition to financing income was the result of a negative return of zero for the previous quarter.There was a positive return of 1% on the Company's investments in marketable securities' portfolios that included Israeli government bonds, compared to a negative return of 2 per cent on.2% in the corresponding quarter last year, as well as from the rise in the interest rate of the Bank of Israel, which increased the interest rate on deposits during the quarter
2% in the corresponding quarter last year, as well as from the rise in the interest rate of the Bank of Israel, which increased the interest rate on deposits during the quarter
A total of NIS 18.2 million was generated in the third quarter of 2023, which represents a 109% increase over the profit generated in the same quarter last year, which was NIS 8.7 million. The increase in profit was driven mainly by the increase in revenues and the transition to financing income for the quarter.
As a result of the increase in revenue, the adjusted EBITDA in Q3 2023 totaled NIS 38.4 million, compared with NIS 30.5 million in the same quarter last year, an increase of 26%, which was due to the increase in the company's revenue.
Compared to the corresponding quarter of last year, the adjusted profit for the third quarter of 2023 totaled NIS 20.1 million, which is a 127% increase over the previous quarter. The increase in revenue was mainly due to the increase in revenue and the transition from operating income to financing income. This is due to the higher returns on the Company's investments in marketable securities portfolios that included Israeli Government bonds compared to the same quarter last year, as well as the increase in interest on deposits. 
As of September 30, 2023, the company had 615.6 million NIS in equity, a 10% decrease from the amount of NIS 686.4 million as of December 31, 2022. It is believed that the decrease in equity is mainly due to the buyback of shares of the company in the amount of NIS 153.7 million, minus the profit of NIS 62.5 million accrued in the first nine months of 2023, as well as the excess consideration obtained from historic shareholders as part of the TASE ownership restructuring in the amount of NIS 12.8 million in excess consideration received at the time. 
You can access the full financial statements for Q3 2023 by clicking on the following link:
You can find the link to the financial presentation for the third quarter of 2023 by clicking here:
I would like to point out that this notification does not replace the information contained in the Company's periodic financial statements, which provide the full and accurate picture of the Company's financial position.
During the third quarter of 2023, the number of trading and clearing days affected the revenue generated by the Company, inter alia, by the number of trading and clearing days. 61 trading days were reported in the third quarter of 2023, in the same manner as the number of days in the corresponding quarter of last year. There were 183 trading days in the first nine months of 2023, compared to 186 days in the corresponding period last year, a 1.6% decrease. The following table summarizes the number of trading days based on the quarterly breakdown of trading days:
Contact: Orna GorenHead of the Communication and Public Relations UnitTel: +972 76 8160405[email protected]
Generally, a custodial member is a member who manages the assets of its clients on the TASE platform and receives TASE's clearing and custodial services, but cannot trade on the TASE platform. By becoming a custodial member of TASE, Clearstream will be able to establish an account at the TASE Clearing House which will allow it to directly provide custodianship services for Israeli securities to its clients throughout the world.
The Tel Aviv Stock Exchange Ltd is the source of this information.
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