The Tel Aviv Stock Exchange closed sharply higher on Monday, November 3, as Israeli equities rallied across major indices. Investors showed renewed optimism following global market stability and easing inflation expectations. Gains were widespread, with financials, technology, and industrial sectors all contributing to the rally.

Major Indices Post Solid Gains

The TA-35 Index, which tracks Israel’s largest companies, climbed 1.32% to close at 3,434.03 points, supported by a healthy trading volume of over 2 billion shekels. Of the 35 listed securities, 28 advanced while only 7 declined, highlighting strong market breadth.

The TA-125 Index, encompassing a broader range of companies, gained 1.35% to 3,485.94 points, while the TA-90 Index rose 1.53% to 3,678.00 points. The sharpest advance came from the TA-90 and Banks Index, which jumped 1.67% to 3,807.73 points, reflecting strong buying activity in Israel’s major banking institutions. The TA-Sector Balance Index also rose 1.23%, showing that gains were distributed across multiple industries rather than concentrated in one area.

Bond Market Shows Stability and Modest Gains

Israel’s bond market maintained stability with a slight upward bias, signaling ongoing investor confidence in the country’s fixed-income assets. The Short-Term Bond Index edged up 0.03%, while the All-Bond General Index increased 0.18%, supported by moderate trading activity totaling more than 6.2 billion shekels.

Inflation-linked bonds also posted small gains. The Tel-Bond Linked A Index advanced 0.11%, and the Tel-Bond 60 Linked Index gained 0.18%, both reflecting steady demand for inflation-protected securities amid a stable inflation outlook. Market data showed more than 439 bonds rising against 61 decliners, confirming continued investor appetite for debt instruments.

Sector Performance and Trading Activity

Sectoral performance reflected a broad-based recovery. Banking and financial stocks led the session, buoyed by positive earnings expectations and favorable lending conditions. Industrial and infrastructure companies also advanced, benefitting from increased public and private investment sentiment.

Trading volume across the equity and bond markets remained strong, totaling more than 13 billion shekels combined across various segments. Analysts noted that this surge in liquidity reflects improved investor sentiment after a volatile period in global markets.

Forward Outlook: Investors Watch Inflation and Policy Trends

Looking ahead, traders will focus on inflation data, interest rate guidance, and global market cues that could influence Israel’s monetary policy trajectory. With domestic equities regaining strength, investors will be watching whether momentum can continue amid evolving macroeconomic conditions.

Potential risks include renewed geopolitical tensions, global rate fluctuations, or unexpected inflationary pressures that could challenge the rally. However, opportunities remain in the banking, technology, and infrastructure sectors, which continue to attract institutional interest.

As markets move into the new week, sentiment appears cautiously optimistic — suggesting that Israel’s capital market could maintain its positive trajectory if macroeconomic stability holds.