Mellanox shares fall on Intel data

Mellanox Technologies Ltd fell in New York to trade at the biggest discount to the Tel Aviv shares on record as Stifel Nicolaus & Co cut the recommendation on the technology stock while Intel Corp reduced its sales forecast.

The maker of technology used to transfer and store data plunged 7.6 percent to $110.85 in New York, extending its discount to the Tel Aviv stock to $9.60. Mellanox led declines in the Bloomberg Israel-US Equity Index of the most traded Israeli companies in New York, which retreated 0.3 percent to 85.15. The measure gained 1.2 percent last week.

Stifel cut its recommendation on Mellanox to hold from buy, saying the Yokneam Elit, Israel-based company may see slower demand for its products. The current price reflects a fair valuation, it said. Intel Corp, the world's largest semiconductor maker, reduced its third-quarter sales forecast, citing declining demand for personal computers from corporate customers in a weakening economy.