Israeli equities closed higher for a second consecutive trading session on Thursday, July 2, as investors continued building on the momentum established at the start of the month. While gains were more moderate than the previous session, buying activity remained broad enough to lift nearly every major benchmark, reinforcing confidence that market sentiment is stabilizing after June’s volatility.

The positive performance extended beyond equities, with government and corporate bond indices also finishing higher. The combination of rising stock and bond prices reflected a constructive tone across Israel’s financial markets.

TA-125 Extends Recovery as Large-Cap Stocks Maintain Momentum

The benchmark TA-125 Index rose 0.52% to close at 4,098.21 points, marking its second straight day of gains after Wednesday’s strong rally. Market breadth remained favorable, with 80 advancing securities compared with 42 decliners and three unchanged stocks.

The blue-chip TA-35 Index added 0.49% to finish at 4,142.12 points. Twenty-two constituents advanced while twelve declined, indicating continued investor support for Israel’s largest publicly traded companies.

Stock market turnover reached approximately NIS 4.31 billion, lower than the previous session but still reflecting healthy trading activity. The steady advance suggests investors remained willing to add exposure despite a more measured pace of buying compared with the start of the month.

The TA-125 has now strengthened further above the 4,000-point level, a threshold that has become an important technical support area following the market’s recovery from late-June weakness.

Mid-Cap Shares and Sector Performance Continue to Support the Market

Mid-cap companies continued contributing to the broader market advance. The TA-90 Index climbed 0.69% to 3,949.02 points after 58 stocks advanced against 30 decliners, indicating that buying interest remained well distributed outside the largest capitalization stocks.

The combined TA-90 and Banks Index gained 0.45% to close at 3,957.59 points. Banking shares maintained positive momentum while supporting the broader financial sector.

The TA-125 Value Index rose 0.38% to 3,963.33 points as value-oriented stocks continued recovering from the weakness experienced during June. Meanwhile, the Tel Aviv Sector-Balance Index advanced 0.61% to 4,701.86 points, with 64 gainers compared with 33 decliners, highlighting strength across multiple sectors of the market.

Although the pace of gains slowed compared with the previous session, the continued positive breadth suggests investors are maintaining confidence rather than quickly locking in profits.

Bond Market Records Broad-Based Gains Alongside Equities

Fixed-income markets also delivered another positive session, reinforcing the favorable tone across Israel’s capital markets.

The All-Bond General Index increased 0.06% to 432.38 points. Market participation remained exceptionally strong, with 509 advancing bond issues compared with only 69 declining securities.

Corporate bonds also posted gains. The Tel Bond-Adjoined A Index climbed 0.13% to 437.77 points, while the Tel Bond 60 Adjacent Index rose 0.10% to 427.73 points. Short-term bonds continued their gradual advance, with the short-term bond index adding 0.04% to reach 475.82 points.

Bond market turnover totaled approximately NIS 3.31 billion, complementing equity market activity and reflecting continued institutional participation across both asset classes.

The simultaneous strength in equities and bonds points to improving investor sentiment rather than a defensive shift between different investment categories.

Looking ahead, investors will monitor whether the Israeli market can sustain its early July recovery after two consecutive positive sessions. Continued strength in the TA-125 above the 4,000-point level, stable trading volumes, and broad market participation will be important indicators of whether the current rebound can evolve into a more durable upward trend. Market participants will also watch domestic economic developments, corporate earnings updates, global monetary policy expectations, and geopolitical events that could influence investor confidence. If buying interest remains broad across both equities and fixed income, Israeli financial markets could continue building on the constructive momentum established at the beginning of the month.