Israeli equities closed higher on Friday, July 24, with blue-chip stocks leading the market as investors continued to selectively increase exposure to equities. The benchmark TA-125 Index posted moderate gains, while the TA-35 outperformed, reflecting renewed strength among Israel’s largest listed companies. Despite ongoing weakness in some value and sector-specific indices, the broader market maintained positive momentum.

Meanwhile, the fixed-income market remained under pressure. Most bond benchmarks finished lower as investors rotated toward equities, although trading activity in the bond market was considerably lighter than in stocks.

TA-35 Leads Market Higher as Large-Cap Stocks Gain Momentum

The TA-35 Index advanced 0.62% to close at 4,253.08 points, building on recent gains and reinforcing positive sentiment toward Israel’s largest publicly traded companies. Eighteen constituents advanced while sixteen declined, with one stock finishing unchanged, highlighting relatively broad participation among blue-chip shares.

The broader TA-125 Index gained 0.41% to end the session at 4,173.88 points. Advancing stocks outnumbered decliners by 63 to 59, while three securities closed unchanged. Although market breadth remained relatively balanced, buying activity in higher-weighted companies helped lift the benchmark.

Stock market turnover reached approximately NIS 4.34 billion, reflecting healthy investor participation. The stronger trading activity suggests institutional investors continued positioning portfolios as corporate and macroeconomic developments shaped market expectations.

The ability of the TA-125 to extend gains while remaining comfortably above the 4,100-point level indicates that investor confidence has improved compared with the volatility experienced earlier in the month.

Mixed Sector Performance Highlights Selective Buying

Performance across market segments remained mixed despite the overall advance.

The TA-90 Index slipped 0.12% to close at 3,918.29 points. Market breadth within the index was nearly balanced, with 45 advancing securities and 43 decliners, suggesting the modest decline was driven by weakness among several larger mid-cap constituents.

The combined TA-90 and Banks Index gained 0.12% to finish at 4,031.42 points. Fifty securities advanced while 43 declined, indicating that banking shares and selected financial companies provided support during the session.

Value-oriented stocks underperformed the broader market. The TA-125 Value Index fell 0.22% to 4,141.41 points, with only 23 advancing securities compared with 32 decliners. The decline suggests investors favored growth-oriented or larger capitalization stocks over traditional value names.

The Tel Aviv Sector-Balance Index was virtually unchanged, easing just 0.01% to 4,757.99 points. Advancing stocks totaled 46 while 51 declined, reflecting a market that remained selective rather than broadly bullish.

The divergence between stronger blue-chip performance and weaker value stocks demonstrates that investors continue concentrating capital in companies viewed as offering stronger earnings visibility and resilience.

Bond Market Softens as Equities Attract Investor Interest

Israel’s bond market extended its recent weakness, although trading volumes remained significantly lower than in equities.

The All-Bond General Index declined 0.13% to close at 430.66 points. Declining securities outnumbered advancing issues by 402 to 156, indicating widespread but moderate selling across fixed-income markets.

Corporate bond benchmarks also weakened. The Tel Bond-Adjoined A Index fell 0.11% to 440.09 points, while the Tel Bond 60 Adjacent Index declined 0.16% to 427.43 points. In contrast, the short-term bond index gained 0.03% to finish at 476.92 points, continuing to demonstrate resilience as investors maintained preference for shorter-duration securities.

Bond market turnover totaled approximately NIS 1.86 billion, well below equity trading volume. The lower activity suggests investors focused more heavily on stock market opportunities while maintaining only selective positioning in fixed-income assets.

The continued resilience of short-term bonds alongside weakness in broader bond benchmarks indicates investors remain cautious about longer-duration interest-rate exposure while still seeking stability through lower-risk fixed-income instruments.

Looking ahead, investors will monitor whether the TA-35 can maintain its leadership and whether gains broaden across mid-cap and value-oriented stocks. Corporate earnings, domestic economic data, global monetary policy expectations, and geopolitical developments will remain key drivers of market direction. Sustained improvement in market breadth and continued strong trading volumes would support the case for further upside in Israeli equities. However, persistent weakness in bond markets and selective sector participation suggest investors remain disciplined, balancing optimism with caution as they evaluate the evolving economic landscape.