Dor Alon Probes 40 Million NIS Theft as Tel Aviv Market Opens Mixed

Dor Alon Probes Suspected 40 Million NIS Employee Embezzlement

Dor Alon, managed by Moti Ben-Moshe, reported a severe suspected large-scale embezzlement across several of its fueling complexes. Employees are suspected of stealing approximately 40 million NIS, primarily over the last two years. In response, the company hired an external investigative firm, filed a complaint with the Israel Police, and is currently evaluating the financial impact on its reports. Dor Alon estimates that due to its embezzlement and fraud insurance policy, the ultimate impact on net profit will be significantly lower than the stolen amount, and no customer funds were affected.

Mixed Opening on the Tel Aviv Stock Exchange

Trading on the local stock exchange opened with mixed trends. The TA-35 index rose by 0.1%, while the TA-90 index traded flat. The energy sector led the gains with a 0.46% increase, followed by foreign income-producing real estate and biomed indices, which both added 0.3%. Conversely, the oil and technology sectors weighed on the market, declining by 0.3% and 0.2%, respectively. In the foreign exchange market, the US dollar strengthened slightly by 0.15% against the shekel, trading at 3.018 NIS.

Global Oil Surge and Bond Market Pressures

Local trading is influenced by a sharp jump in global oil prices, with Brent crude crossing 97 USD per barrel and WTI climbing to 93 USD. This bullish trend is fueled by potential supply disruptions following Houthi attacks on Saudi Aramco refineries and Iranian threats to close the Strait of Hormuz.

In the domestic debt market, government bond yields showed an upward trend in medium and long-term maturities. The 10-year government bond yield climbed to 3.91%, while the 20-year and 30-year yields reached 4.35% and 4.51%, respectively. In corporate debt, Bank Hapoalim completed a major debt issuance of approximately 1.8 billion NIS.

ECB Rate Decision and Nvidia Outlook

Markets are pricing in a near-certain 0.25% interest rate hike by the European Central Bank (ECB) this Thursday, which would raise the deposit rate to 2.5%. This comes as Eurozone inflation reached a three-year high of 3.3% in August, driven by a 14.3% surge in energy costs.

Meanwhile, chip giant Nvidia continues to impress Wall Street, trading around 230 USD with a market cap nearing 5.5 trillion USD. The company projected a 70% revenue growth for fiscal year 2028, driven by demand for its new Vera Rubin chip architecture. Morgan Stanley reiterated a "Buy" rating on Nvidia with a price target of 300 USD.