Israeli equities closed lower for a third consecutive trading session on Thursday, July 9, as selling pressure intensified across nearly every segment of the market. The latest decline erased additional ground from the strong gains recorded at the beginning of July, with investors continuing to reduce exposure amid weakening market sentiment.

While equities experienced another broad selloff, the bond market remained comparatively stable. Government and corporate bond benchmarks posted only modest movements, suggesting investors were becoming more selective rather than exiting financial markets altogether.

TA-125 Slides as Broad Market Selling Accelerates

The benchmark TA-125 Index fell 1.12% to close at 4,007.25 points, bringing the index closer to the psychologically important 4,000-point level. Market breadth deteriorated significantly, with just 17 advancing securities compared with 104 decliners and four unchanged issues, highlighting the widespread nature of the selloff.

The blue-chip TA-35 Index declined 0.82% to finish at 4,053.64 points. Only four constituents advanced while thirty declined, illustrating broad weakness even among Israel’s largest listed companies.

Stock market turnover totaled approximately NIS 4.55 billion, remaining broadly consistent with recent sessions. The steady trading volume indicates that institutional investors remained active as portfolios continued to be repositioned amid the recent market weakness.

After beginning July with a strong rebound, the TA-125 has now surrendered much of those gains, leaving investors closely watching whether the 4,000-point level can provide meaningful technical support.

Mid-Cap Stocks Continue to Underperform as Market Breadth Weakens Further

Mid-cap companies once again recorded steeper losses than the broader market. The TA-90 Index dropped 2.00% to close at 3,859.22 points, with only 13 advancing stocks against 74 decliners, reflecting persistent weakness across medium-sized companies.

The combined TA-90 and Banks Index declined 2.05% to 3,926.46 points. Banking shares, which had previously shown relative resilience, joined the broader market decline and contributed to the overall weakness in financial stocks.

The TA-125 Value Index fell 1.94% to close at 3,937.77 points, indicating that value-oriented companies also came under renewed selling pressure. Meanwhile, the Tel Aviv Sector-Balance Index lost 1.54% to 4,586.12 points, with only 12 advancing securities compared with 85 decliners.

The continued deterioration in market breadth suggests investors remain cautious across nearly every sector, with defensive positioning outweighing selective buying opportunities.

Bond Market Shows Relative Stability Despite Equity Weakness

Israel’s fixed-income market remained considerably more stable than equities, limiting overall losses despite the negative tone in stock markets.

The All-Bond General Index edged down just 0.02% to close at 432.41 points. While declining bond issues outnumbered advancing securities by 291 to 258, price movements remained relatively modest compared with the equity market.

Corporate bonds posted slightly stronger performance. The Tel Bond-Adjoined A Index gained 0.02% to finish at 439.30 points, while the Tel Bond 60 Adjacent Index added 0.04% to 427.96 points. The short-term bond index also edged higher by 0.01% to close at 476.21 points.

Bond market turnover reached approximately NIS 3.65 billion, reflecting continued institutional participation and suggesting that fixed-income securities continue to serve as a relatively stable component of investor portfolios during periods of equity market volatility.

The resilience of corporate and short-duration bonds indicates that investors are exercising caution without signaling broader concerns about credit conditions.

Looking ahead, investors will closely monitor whether the TA-125 can defend the critical 4,000-point threshold after three consecutive sessions of declines. A recovery in market breadth and renewed buying among large-cap and mid-cap stocks would help restore confidence following the recent pullback. Market participants will also remain focused on corporate developments, economic indicators, monetary policy expectations, and geopolitical events that could influence investor sentiment. If selling pressure begins to ease while trading volumes remain healthy, Israeli equities may find a foundation for stabilization. However, a decisive break below key technical support levels could trigger additional short-term volatility before confidence returns.