TA-35 Soars Nearly 4%: Is the Israeli Stock Market Back on Track?

Over the past week, the TA-35 index surged by 3.99%, closing at 3,033.71 points. This sharp rise has reignited interest in the Israeli capital market, drawing attention from both local and international investors. But is this a sign of broader economic recovery, or merely a short-term rebound? Let’s dive into the drivers behind the rally and what it may signal for the weeks ahead.

A Weekly Breakout That Signals a Potential Trend Shift?

Crossing the 3,000-point threshold, TA-35 has broken through a major resistance level—both technically and psychologically. After months of sideways trading and downward pressure due to macroeconomic uncertainty, high interest rates, and political tensions, investor confidence appears to be returning. This move is supported by a combination of strong earnings from key index components, increased foreign inflows, and encouraging signals from the Ministry of Finance and the Bank of Israel.

Leading Sectors: Finance, Real Estate, and Tech

The rally was fueled primarily by three core sectors: financials, real estate, and technology. Israel’s major banks—Leumi, Hapoalim, and Discount—have posted improved profitability, driven by stable credit markets and reduced systemic risks. In real estate, expectations of potential interest rate cuts later this year have given a boost to shares of major players like Azrieli, Gav Yam, and Azorim.

The tech sector also shined, with strong performance from firms such as Nova, SolarEdge, and Orbotech, driven by solid earnings and renewed foreign investor interest in Israeli innovation.

Capital Is Flowing Back In: A Vote of Confidence

Perhaps the most significant shift is the renewed presence of institutional investors, foreign funds, and private traders in Tel Aviv. Trading volumes are climbing, with a growing focus on TA-35 components—a strong sign of restored confidence. Global market momentum has played its part too, as major U.S. indices like the Nasdaq and S&P 500 reached new highs, creating a positive spillover effect on Israeli equities.

Temporary Spike or Sustainable Trend?

The key question is whether this rally marks the beginning of a sustainable uptrend or just a short-term bounce. Risks remain: inflation has yet to fully stabilize, the Bank of Israel is maintaining a high interest rate environment, and geopolitical concerns continue to loom. Political uncertainty still clouds investor sentiment.

Still, some analysts argue the market may have already priced in much of the negative outlook, leaving room for upside over the medium to long term—particularly if rate cuts materialize and inflation continues to cool.

Bottom Line: Time to Reassess Your Portfolio?

The recent surge in TA-35 may offer a rare opportunity for investors to reassess their positions, rebalance portfolios, and take advantage of a potentially favorable turning point. As always, staying informed and agile remains essential—especially in a market that’s beginning to show signs of life again.