The Tel Aviv Stock Exchange closed with a mixed performance on August 19 as investors continued to differentiate between market segments following the sharp volatility earlier in the week. While the large-cap TA-35 slipped, mid-cap, banking and value-oriented shares advanced, while the bond market also recovered across most major benchmarks.

TA-90 and Banking Shares Continue to Recover

The TA-90 Index rose 0.58% to 3,643.17 points, extending the recovery after its sharp 2.68% decline on August 17. Market breadth remained firmly positive, with 59 securities advancing compared with 30 decliners and one unchanged security.

The TA-90 and Banks Index also gained 0.57% to 3,898.73 points. Sixty-two securities advanced, while 31 declined and two were unchanged.

The stronger performance of these indexes suggests that buying interest remained concentrated in mid-cap and banking-related shares. Their continued gains also stand in contrast with the TA-35, indicating that the market recovery has not been evenly distributed across capitalization segments.

Value Stocks Deliver the Strongest Gain

The standout performer was the TA-125 Value Index, which surged 2.01% to 4,140.90 points. Forty-two securities advanced, compared with only 11 decliners and three unchanged securities.

The move represents a significant acceleration from the previous session, when the value index gained 1.48%. It also indicates that value-oriented shares continued to attract strong buying interest even as the broader TA-35 benchmark remained under pressure.

The Tel Aviv Sector-Balance Index advanced 0.68% to 4,596.02 points. Sixty-five securities gained, compared with 31 decliners and four unchanged securities.

By contrast, the broader TA-125 Index was essentially flat, declining just 0.02% to 4,039.99 points. Despite the negligible index move, market breadth was positive, with 80 advancing securities, 42 declining and four unchanged.

The TA-35 fell 0.20% to 4,167.91 points. Twenty-one securities advanced, 12 declined and three remained unchanged.

Bond Market Rebounds Broadly

Fixed income strengthened across most major benchmarks during the session.

The All-Bond General Index rose 0.12% to 432.59 points. Market breadth improved substantially, with 392 securities advancing against 159 decliners and 64 unchanged.

The Tel Bond 60 Adjacent Index gained 0.08% to 428.15 points, with 57 advancing securities and just three decliners.

The Tel Bond-Adjoined A Index also edged higher, rising 0.01% to 438.37 points. Forty-two securities advanced compared with 32 decliners and five unchanged.

The Short-Term Bond Index increased 0.01% to 477.92 points, supported by 66 advancing securities against 29 decliners and 40 unchanged.

The broad improvement in bond-market breadth marks a notable contrast with the previous session, when most fixed-income benchmarks declined.

Trading Activity and Market Outlook

Trading activity remained substantial, with stock-market turnover reaching approximately NIS 3.86 billion. Bond-market turnover was higher at approximately NIS 4.73 billion, showing continued activity across fixed income as investors reassessed positioning following recent market volatility.

The August 19 session suggests that the recovery in Israeli markets is becoming increasingly selective, with value, banking and mid-cap shares showing stronger momentum than the largest companies. Investors will likely monitor whether the TA-90 and TA-125 Value Index can sustain their gains while the TA-35 attempts to stabilize. The continued improvement in bond-market breadth could provide additional support, but sharp recent swings remain a risk. Future sessions will be important for determining whether stronger participation across value and mid-cap stocks develops into a broader market recovery or remains concentrated in selected segments.