Bets Israel gas dispute may end send Delek Group to 6-month high

SHOSHANNA SOLOMON

TEL AVIV (Bloomberg) -- Delek Group Ltd. rose to the highest since December as investors discerned an end to months of regulatory uncertainty that halted development of Israel’s offshore natural gas fields.

The company’s shares jumped after Yuval Steinitz, Minister for National Infrastructures, Energy and Water resources, told Army Radio that the Israeli government wants to reach an agreement with exploration companies on a natural gas policy framework as soon as possible.

“I think we are nearing the end of the regulatory saga as all parties want to reach a solution,” Eldad Tamir, CEO of Tel Aviv-based Tamir Fishman Group, said by phone. “Any delay hurts the Israeli economy.”

The development of Leviathan, Israel’s largest offshore natural gas field, held by Houston-based Noble Energy Inc. and units of Delek Group, has stalled amid arguments over policy. The country’s antitrust commissioner, David Gilo, tendered his resignation last month to protest the blueprint that is set to be approved. Gilo said it doesn’t do enough to break up the gas monopoly that emerged after two major offshore fields were discovered several years ago. The Tel Aviv Oil & Gas index gained 1.7% to its highest level since Nov. 27 at 1:42 p.m. local time.

Delek Group shares advanced as much as 3% before trading 1.6% higher at 1,199 shekels, the highest since Dec. 10. Its moving average convergence divergence, or MACD gauge, has risen higher than its signal line and is above zero, a bullish signal for the shares.

Delek’s stock, which dropped to an 11-month low in December after Gilo threatened to declare the partnership in Leviathan a restrictive arrangement, is now trading above the Upper Bollinger Band, which may mean a continuation of the bullish trend. Bollinger Bands are designed to alert investors when a security rises too high or falls too low by comparing its price to the past average level.