Last week, I discussed reasons why the Tel Aviv Stock Exchange in 2010 may not see a repeat of the profits of 2009. 

After less than 3 weeks trading in the new year, there is no sign of a slow down in the prices of stocks. Yesterday, the 25-index rose nearly another 1% and in a day of relatively high trading – roughly US$0.43 billion.

Now here’s the point. Over the next few days, the OECD will make the final decision, whether to accept Israel as a full member of its organisation. Five years in process, Israel is expected to be allowed into this prestigious economic forum in May 2010.

Using data from stock markets of other former new members and extrapolating what is being said on the financial wires, analysts believe that official membership will see international funds pouring in to Tel Aviv’s financial markets.

Doron Shorer, the former comptroller of the Israel’s financial market, is quoted in today’s newspaper. He estimates that the net immediate in flow will be around US$6.0 billion. That is a heck of a lot of bucks for any country, especially the size of Israel’s.

I guess that I will be writing more on this topic as the ramifications filter down to the rest of the economy, starting with the exchange rate.