Israeli equities closed lower for a second consecutive session on Tuesday, July 28, as broad-based selling pressure continued across the Tel Aviv Stock Exchange. Large-cap, mid-cap, and sector indexes all finished in negative territory, while investors continued shifting toward fixed-income assets.

Although equity sentiment remained weak, the bond market again demonstrated relative stability, with broad bond indexes posting modest gains despite weakness in some corporate bond segments.

Blue-Chip Stocks Lead Another Market Selloff

The TA-35 Index fell 1.81% to close at 4,086.59 points. Market breadth remained weak, with only eight advancing stocks compared with 27 decliners among the benchmark’s constituents.

The broader TA-125 Index declined 1.76% to 4,023.47 points. Advancing issues totaled just 30, while 94 securities declined and one remained unchanged, highlighting widespread selling across the broader market.

Stock market turnover reached approximately NIS 3.42 billion, indicating active trading as investors continued reducing exposure to equities.

The latest decline follows Monday’s sharp losses, suggesting investor sentiment remains cautious amid ongoing domestic and global uncertainties.

Mid-Cap and Sector Indexes Continue to Underperform

The TA-90 Index declined 1.53% to finish at 3,808.54 points. Only 22 stocks advanced while 67 declined, reflecting continued weakness among Israel’s mid-cap companies.

The TA-90 and Banks Index also fell 1.53%, ending the session at 3,941.90 points. Advancers totaled 22 against 72 decliners, indicating that financial stocks participated in the broader market weakness.

The TA-125 Value Index lost 0.94% to close at 4,066.81 points. Only 14 securities gained while 42 declined, showing that value-oriented shares also remained under pressure.

The Tel Aviv Sector-Balance Index dropped 1.48% to 4,623.18 points, with 21 advancing stocks compared with 78 decliners, confirming that selling pressure remained widespread across nearly every sector.

Bond Market Outperforms as Investors Seek Safety

Israel’s fixed-income market once again proved more resilient than equities.

The All-Bond General Index rose 0.05% to close at 431.06 points despite mixed market breadth, with 246 bond issues advancing, 298 declining, and 62 unchanged.

The Short-Term Bond Index edged up 0.01% to 477.00 points, continuing to reflect stability in short-duration securities.

Corporate bonds showed mixed performance. The Tel Bond-Adjoined A Index slipped 0.06% to 439.68 points, while the Tel Bond 60 Adjacent Index edged up 0.01% to 427.34 points.

Bond market turnover totaled approximately NIS 4.55 billion, exceeding stock market turnover and reinforcing the continued rotation toward more defensive investments.

Market Outlook

The Tel Aviv market has now experienced consecutive sessions of broad-based selling, with declining stocks significantly outnumbering gainers across nearly every major equity benchmark. Investors will closely monitor upcoming corporate earnings, geopolitical developments, inflation trends, and global central bank policy signals for indications of whether selling pressure is nearing exhaustion or could continue. Continued strength in Israel’s bond market alongside equity weakness suggests investors remain focused on capital preservation until market sentiment improves.