Israel's Bank Leumi yesterday closed the offer period of a new two-year, shekel-denominated structured deposit linked to the performance of the EWZ UP Brazilian ETF Index, which tracks MSCI Brazil, calculated in dollars.
Two-year Shekel Structured Deposit Linked to the Brazilian Index is a short-term growth structure offering investors full protection on the capital invested. The product has 100% participation in the positive performance of the underlying if it increases by up to 42% on any day (non-inclusive) or a flat 3% if it moves by 42% or more on any day.
According to Leumi, Brazil's financial stability and the increasing demand for its products from developing countries will continue to support local equities: "There is a high correlation between crude oil and commodities prices and the Brazilian equities market trend. The sharp hike in commodities and crude oil prices contributed to a positive trend in the index, which added approximately 82% in 2009. In view of the sharp hikes already recorded, over the short term, it is possible that the rising trend in the markets will be reversed," it said.
The product struck yesterday; minimum investment was NIS15,000 ($4,012).