UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 SCHEDULE 13G/A
                                (AMENDMENT NO. 2)
                                 (RULE 13D-102)

 INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES 13d-1(b), (c)
         AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(b)

                    UNDER THE SECURITIES EXCHANGE ACT OF 1934

                             POINTER TELOCATION LTD.
--------------------------------------------------------------------------------
                                (Name of Issuer)

                  ORDINARY SHARES, NIS 3.00 PAR VALUE PER SHARE
--------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                    M7946T104
                      -------------------------------------
                                 (CUSIP Number)

                                DECEMBER 15, 2008
--------------------------------------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)

Check the following box to designate the rule pursuant to which the Schedule is
filed:

     [_] Rule 13d-1(b)

     [X] Rule 13d-1(c)

     [_] Rule 13d-1(d)

*    The remainder of this cover page shall be filled out for a reporting
     person's initial filing on this form with respect to the subject class of
     securities, and for any subsequent amendment containing information which
     would alter disclosures provided in a prior cover page.

     The information required on the remainder of this cover page shall not be
     deemed to be "filed" for the purpose of Section 18 of the Securities
     Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
     that section of the Act but shall be subject to all other provisions of the
     Act (however, see the Notes).


                               Page 1 of 6 pages



CUSIP NO.  M7946T104

--------------------------------------------------------------------------------
1.   Name of Reporting Person

     Migdal Capital Markets (1965) Ltd.
--------------------------------------------------------------------------------
2.   Check the Appropriate Box if a Member of a Group
     (a)  [X]
     (b)  [_]
--------------------------------------------------------------------------------
3.   SEC Use only

--------------------------------------------------------------------------------
4.   Place of Organization

     Israel
--------------------------------------------------------------------------------
                   5.   Sole Voting Power


                   -------------------------------------------------------------
Number of          6.   Shared Voting Power
Shares
Beneficially            28,855 Ordinary Shares*
Owned by Each      -------------------------------------------------------------
Reporting          7.   Sole Dispositive Power
Person With:

                   -------------------------------------------------------------
                   8.   Shared Dispositive Power

                        28,855 Ordinary Shares*
--------------------------------------------------------------------------------
9.   Aggregate Amount Beneficially Owned by Each Reporting Person

     28,855 Ordinary Shares*
--------------------------------------------------------------------------------
10.  Check if the Aggregate Amount in Row (9) Excludes Certain Shares

     [_]
--------------------------------------------------------------------------------
11.  Percent of Class Represented by Amount in Row (9)

     0.6%**
--------------------------------------------------------------------------------
12.  Type of Reporting Person:

     CO
--------------------------------------------------------------------------------

* See Item 4.

** Based on 4,752,931 Ordinary Shares outstanding as of December 18, 2008
(accordingly to publicly available information provided by the issuer ).


                               Page 2 of 6 pages



CUSIP NO.  M7946T104

--------------------------------------------------------------------------------
1.   Name of Reporting Person

     Migdal Insurance & Financial Holdings Ltd
--------------------------------------------------------------------------------
2.   Check the Appropriate Box if a Member of a Group
     (a)  [X]
     (b)  [_]
--------------------------------------------------------------------------------
3.   SEC Use only

--------------------------------------------------------------------------------
4.   Place of Organization

     Israel
--------------------------------------------------------------------------------
                   5.   Sole Voting Power


                   -------------------------------------------------------------
Number of          6.   Shared Voting Power
Shares
Beneficially            28,855 Ordinary Shares *
Owned by Each      -------------------------------------------------------------
Reporting          7.   Sole Dispositive Power
Person With:

                   -------------------------------------------------------------
                   8.   Shared Dispositive Power

                        28,855 Ordinary Shares *
--------------------------------------------------------------------------------
9.   Aggregate Amount Beneficially Owned by Each Reporting Person

     28,855 Ordinary Shares *
--------------------------------------------------------------------------------
10.  Check if the Aggregate Amount in Row (9) Excludes Certain Shares

     [_]
--------------------------------------------------------------------------------
11.  Percent of Class Represented by Amount in Row (9)

     0.6%**
--------------------------------------------------------------------------------
12.  Type of Reporting Person:

     CO
--------------------------------------------------------------------------------

* See Item 4.

** Based on 4,752,931 Ordinary Shares outstanding as of December 18, 2008
(accordingly to publicly available information provided by the issuer ).


                               Page 3 of 6 pages



ITEM 1.

     (a)  Name of Issuer:

          POINTER TELOCATION LTD.

     (b)  Address of Issuer's Principal Executive Offices:

          1 KORAZIN STREET, GIVATAYIM 53583, ISRAEL

ITEM 2.

(a)-(c) Name of Person Filing, address and citizenship:

The foregoing entities are collectively referred to as the "Reporting Persons"
in this Statement:

     (1)  Migdal Capital Markets (1965) Ltd. , an Israeli private company
          ("Migdal Capital Markets"), with a principal business address at 26
          Saadia Gaon St., Tel Aviv 67135, Israel.

     (2)  Migdal Insurance & Financial Holdings Ltd., an Israeli public company
          ("MIFH"), with a principal business address at 4 Efal Street; P.O. Box
          3063; Petach Tikva 49512, Israel.

          Migdal Capital Markets is held (100%) by Migdal Investment Management
     2001 Ltd, a wholly owned subsidiary of MIFH. Migdal Investment Management
     2001 Ltd is not a reporting person and is listed herein for the sake of
     good order and for avoidance of doubt. Given the control MIFH has over
     Migdal Investment Management 2001 Ltd, it may be deemed to be the
     beneficial owner of, and to share the power to vote and dispose of, the
     Ordinary Shares owned by Migdal Capital Markets. See Item 4

(d)  Title of Class of Securities:

     Ordinary Shares, NIS 3.00 par value per share (the "Ordinary Shares")

(e)  CUSIP Number:

     M7946T104

ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO SS.SS.240.13D-1(B) OR
        240.13D-2(B) OR (C), CHECK WHETHER THE PERSON FILING IS A:

     Not Applicable.

ITEM 4. OWNERSHIP

     The 28,855 Ordinary Shares reported in this Statement as beneficially owned
by the Reporting Persons are held for members of the public through, among
others, provident funds, mutual funds, which are managed by subsidiaries of
Migdal Capital Markets, each of which subsidiaries operates under independent
management and makes independent voting and investment decisions. Consequently,
this Statement shall not be construed as an admission by the Reporting Persons
that they are the beneficial owner of the 28,855 Ordinary Shares covered by this
Statement.

     Except as set forth above, see items 5-11 of the cover pages hereto for
beneficial ownership, percentage of class and dispositive power of the Reporting
Persons, which are incorporated herein.

ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS

     If this statement is being filed to report the fact that as of the date
     hereof the reporting person has ceased to be the beneficial owner of more
     than 5 percent of the class of securities, check the following [X].

ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON

     Not Applicable.


                               Page 4 of 6 pages



ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE
        SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY

     Not Applicable.

ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP

     Not Applicable.

ITEM 9. NOTICE OF DISSOLUTION OF GROUP

     Not Applicable.

ITEM 10. CERTIFICATION

     By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.

                           [SIGNATURE PAGE TO FOLLOW]


                               Page 5 of 6 pages



                                   SIGNATURES

     After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

December 25, 2008

                                MIGDAL INSURANCE AND FINANCIAL HOLDINGS LTD.

                                By: /s/ Anath Levin & Shimon Kalman
                                -----------------------------------
                                , authorized signatories of MIGDAL INSURANCE
                                AND FINANCIAL HOLDINGS LTD. for itself and
                                on behalf of MIGDAL CAPITAL MARKETS (1965) LTD.,
                                pursuant to the agreement annexed as
                                Exhibit 1 to Schedule 13G date of April 8, 2008.


                               Page 6 of 6 pages