Israel’s financial markets opened the week on a softer note, closing lower on Monday, November 3, as sentiment remained cautious across equities and bonds. The decline came amid lingering concerns over geopolitical developments and mixed signals from global markets. The benchmark TA-35 Index fell 0.45% to 3,335.93 points, while the TA-90 Index, which tracks mid-cap stocks, slipped 1.05% to 3,579.42 points. Despite the decline, market activity was robust, with total trading volumes across all equity indexes reaching more than 11.6 billion shekels, suggesting active participation but a defensive tone among investors.

Large-Cap Indexes Ease as Institutional Investors Rebalance

The TA-35, which reflects the performance of Israel’s top blue-chip companies, ended the session in negative territory, as declines in financials and technology weighed on the index. Out of 35 listed securities, 17 declined and 18 gained, reflecting a relatively balanced yet cautious trading pattern. Analysts noted that institutional investors appeared to be rebalancing portfolios ahead of key macroeconomic data expected later in the month.

Similarly, the TA-125 Index, which represents a broader snapshot of the market, fell 0.61% to 3,389.34 points, pressured by weakness in growth-oriented and value stocks alike. The TA-125 Value Index, which focuses on companies with strong fundamentals but slower growth potential, dropped 1.01% to 3,818.34, suggesting that investors are temporarily favoring liquidity and short-term holdings over long-term positioning.

Market analysts attributed the overall decline to a mix of global headwinds, including slower international trade and tightening financial conditions, as well as continued geopolitical risks in the region.

Mid-Cap and Sector Indexes See Broad Losses

The TA-90 Index underperformed, falling 1.05%, as mid-cap stocks faced stronger selling pressure. The TA Banks and TA-90 Banks Index also slipped 0.26% to 3,690.27 points, signaling that the financial sector, which had shown resilience in recent weeks, faced renewed headwinds. Banking shares, which tend to be sensitive to interest rate movements, showed mixed performance amid uncertainty about the Bank of Israel’s next policy decision.

Sectorally, the TA Sector Balance Index fell 0.54% to 3,965.90, reflecting broad-based weakness across cyclical sectors such as real estat