The Tel Aviv market ended the first trading session of 2026 on a strong note, with equities and bonds closing firmly higher as investors returned from the holiday period with renewed confidence. The market is now closed as of Friday, January 2 (Israel), marking a constructive start to the year across risk assets.

Equities Open the Year with Broad-Based Gains

Israeli equities posted a synchronized rally, led by the TA-35 Index, which advanced 1.76% to close at 3,695.29 points. Trading activity was solid, with turnover reaching ₪1.41 billion, while market breadth reflected healthy participation as 26 stocks advanced versus only 8 decliners. The performance of the benchmark index highlighted renewed buying interest in blue-chip names at the start of the year.

The broader TA-125 Index also delivered a strong showing, rising 1.90% to 3,733.08 points. Advancers significantly outpaced decliners, underscoring the strength of the rally beyond a narrow group of large-cap stocks. Total turnover across the equity market reached approximately ₪2.96 billion, pointing to active participation from institutional and retail investors alike.

Mid-Caps and Banks Drive Outperformance

Mid-cap stocks outperformed larger peers, with the TA-90 Index surging 2.40% to 3,899.78 points. A notable 75 securities advanced, compared with just 10 declines, reflecting strong risk-on sentiment. This segment’s leadership often signals growing confidence in domestic economic conditions.

Banking and value-oriented stocks stood out as key drivers of the session. The TA-90 and Banks Index jumped 2.85% to 4,023.82 points, supported by heavy turnover exceeding ₪1.01 billion. Meanwhile, the TA-125 Value Index climbed 2.01%, and the TA Sector Balance Index rose 2.08%, indicating strength across multiple sectors rather than a narrow rally.

Bond Market Strength Reinforces Positive Market Tone

The bond market also ended the session higher, reinforcing the constructive backdrop across asset classes. The All-Bond General Index rose 0.11% to 421.28 points, supported by substantial turnover of more than ₪3.39 billion. Short-duration bonds remained stable, with the Short-Term Bond Index (up to one year) edging up 0.05%.

Inflation-linked bonds posted modest gains as well, with the Tel Bond Linked A Index and the Tel Bond 60 Linked Index both closing higher. Total bond market turnover reached approximately ₪4.26 billion, exceeding equity turnover and highlighting continued institutional interest in fixed income instruments.

Looking ahead, investors will monitor whether this early-year momentum can be sustained as new macroeconomic data, monetary policy signals, and global market developments unfold. Potential risks include shifts in global interest rate expectations and external volatility, while opportunities may emerge in banking, value stocks, and selectively in mid-cap equities if domestic growth indicators remain supportive in the weeks ahead.