The Israeli stock market opened in moderate decline on the morning of Tuesday, June 18, 2025, as investors weighed global economic signals and awaited upcoming interest rate decisions. Leading indices, including the TA-35 and TA-125, showed slight losses, while the bond market remained mostly stable with minor gains.

Market Snapshot as of 10:15 AM – Key Indices

Summary of Movements:

• TA-125, representing a broad basket of stocks, declined by 0.38% with turnover nearing NIS 77 million.

• TA-35, the index of Israel’s largest publicly traded companies, dropped 0.37% but showed 24 stocks advancing vs. 9 declining.

• TA-90, comprising mid-cap companies, also fell 0.36%, with a more negative ratio of 48 losers vs. 25 gainers.

• The banking and sectoral indices reflected mild declines, indicating a cautious sentiment across various sectors.

Bond Market Holds Firm Amid Equity Weakness

The bond market remains steady, with the All-Bond General Index posting a marginal gain of 0.01%. Investors are clearly gravitating toward more stable fixed-income instruments amidst equity market uncertainty.

Market Breadth – Breakdown by Index

• TA-125: 49 gainers, 57 decliners, 19 unchanged

• TA-90: 25 gainers, 48 decliners, 17 unchanged

• TA-125 Value: A balanced 23 gainers vs. 23 decliners

• Sector-Balance Index: Near parity with 44 gainers vs. 45 decliners

• All-Bond Index: 38 gainers, 51 decliners, 352 unchanged – reflecting calm, low-volatility trading

Key Drivers Influencing Today’s Trading

1. Interest Rate Expectations – Investors remain watchful for signals from the Bank of Israel. With inflation softening, there’s speculation that interest rate hikes may be paused or reversed in the coming months.

2. Global Market Trends – Declines in European markets and cautious trading in Asia are influencing sentiment in Israel. Investors are also anticipating upcoming statements from the U.S. Federal Reserve this week.

3. Corporate Earnings Season – With Q2 earnings around the corner, investors are positioning themselves cautiously until more financial data from leading companies is released.

Sectoral Trends and Notable Movements

• Technology and Finance: Facing mild pressure, likely due to global sectoral sentiment.

• Energy and Utilities: Stable with slight buying interest.

• Bond-linked assets: Attracting investor flows amid equity volatility.

Looking Ahead – What to Watch This Week

• Upcoming inflation and employment data in Israel

• Statements from the Bank of Israel and the Federal Reserve

• Geopolitical developments, especially in the Middle East

• Performance of global markets, which may spill over into the Tel Aviv Exchange

Market Outlook: Volatility or Opportunity?

While the market opened with declines, many analysts view current conditions as a natural correction phase following recent gains. The divergence between equities and bonds suggests a more defensive posture among institutional investors, but also an opportunity for selective accumulation in undervalued sectors.

Conclusion

As of 10:15 AM on June 18, 2025, the Tel Aviv Stock Exchange is trading in the red, led by modest declines in major equity indices. However, stability in the bond market and moderate trading volumes suggest that investors are not panicking but instead adjusting their portfolios amid short-term uncertainty.

In the days ahead, economic indicators and central bank policies will remain pivotal in shaping investor sentiment. For now, the mood is cautious—but attentive.

Stay tuned for market updates throughout the week as more data comes into play.