The Tel Aviv Stock Exchange opened February 13 with a cautious tone, as major indices declined amid moderate trading volumes. Investors are weighing recent earnings reports and macroeconomic developments, while fixed-income markets remain relatively stable, providing a measure of defensive positioning. The interplay between equity volatility and bond market steadiness continues to shape market sentiment for domestic and international participants with exposure to Israel.

Equity Market Performance

The TA-35 index fell 0.59% to 4,165.82 points, with 22 stocks declining and only 3 advancing, indicating a broad-based negative trend among blue-chip companies. The TA-90 and TA-90 Banks indices dropped 0.91% and 0.80% to 4,057.05 and 4,307.07 points, respectively, highlighting weakness in mid-cap and banking sectors. The TA-125 and its value-focused counterpart decreased 0.69% and 1.03%, reflecting pressure across both growth and value segments. Trading volumes totaled 218,067 thousand shekels for equities, signaling moderate market engagement as investors remain selective amid ongoing sector rotation.

Fixed-Income Market Dynamics

Bond indices demonstrated relative stability in early trading. The All-Bond general index increased slightly by 0.02% to 424.21 points, while short-term and inflation-linked bonds showed minimal movement. The TA-L Bond A and TA-L 60 Inflation-Linked indices were largely unchanged or up marginally, reflecting consistent demand for defensive fixed-income assets. Total bond turnover reached 243,155 thousand shekels, suggesting active participation by institutional investors seeking stable yields in the face of equity market fluctuations.

Sector-Specific Observations

Technology and banking sectors contributed most to the equity declines, underscoring sensitivity to domestic economic updates and regional market sentiment. Conversely, defensive sectors and diversified indices maintained relative resilience, with the TA-Sector Balance index down 0.94% but demonstrating participation across 18 advancing and 37 declining stocks. These trends highlight the ongoing rotation between riskier cyclical sectors and more defensive allocations, signaling that investor positioning continues to adjust in response to both local and global developments.

Market Outlook and Key Factors to Monitor

Looking ahead, investors will closely observe domestic macroeconomic indicators, corporate earnings releases, and regional liquidity conditions to gauge market direction. Equity volatility may persist, particularly within technology and banking segments, while bond markets are expected to maintain their stabilizing influence. International investor sentiment, cross-border capital flows, and potential policy announcements from the Bank of Israel will remain critical for shaping short-term performance. Monitoring sector rotation, trading volumes, and correlations between equities and bonds will be essential for navigating Israel’s market environment in the coming sessions.