The Tel Aviv market opened on February 16, 2026, with a generally positive tone across both equity and bond segments. The TA-35 index rose 0.34% to 4,184.22 points, reflecting early optimism among investors, while the broader TA-125 index gained 0.54% to 4,167.56 points. Activity remains concentrated in blue-chip and banking-related equities, as traders digest macroeconomic signals and position themselves ahead of key corporate updates.

Equity Market Performance and Trends

The equity segment is showing broad participation, with 31 securities advancing on the TA-35 compared to only 4 declining, indicating strong early session momentum. The TA-90 index recorded an increase of 1.15% to 4,113.06 points, driven by gains in medium-cap stocks and banking sector equities. Volume for the TA-35 reached approximately 200,804.69 thousand shekels, suggesting moderate liquidity.

Investors appear to be weighing domestic corporate earnings and external macro factors. The TA-90 Banks subindex rose 0.83% to 4,338.40 points, highlighting continued interest in the financial sector as interest rate expectations and regulatory developments influence market positioning. Equity flows show a preference for stability, with investors selectively targeting sectors that combine defensive characteristics with growth potential.

Bond Market Stability and Investor Sentiment

Fixed-income markets demonstrated relative stability during the session. The short-term bond index remained unchanged at 467.41 points, while inflation-linked benchmarks, including the L-Bond A and L-Bond 60 indices, showed negligible moves of 0.00% and 0.05%, respectively. Total bond market turnover stood at 72,345 thousand shekels, reflecting cautious trading amid stable interest rate expectations.

Analysts note that the minimal movement in bond yields suggests that investors are prioritizing capital preservation and portfolio diversification over aggressive positioning. The All-Bond general index advanced 0.13% to 425.37 points, supported by moderate buying interest in medium-duration instruments. The consistency across bond segments underscores a balanced risk appetite and the ongoing importance of fixed-income allocations for institutional and high-net-worth investors.

Sector Insights and Market Drivers

Sector-level performance indicates that balanced and industrial segments continue to outperform. The TA-125 Value index advanced 0.30% to 4,428.14 points, while the TA Sector-Balance index rose 0.74% to 4,853.33 points, demonstrating selective interest in diversified exposure.

Market participants are monitoring developments in global equities and commodities that could influence local trading, including currency fluctuations, inflation data, and geopolitical considerations. For Israeli investors, the shekel-dollar exchange rate remains a key determinant for risk management, particularly for those investing via international platforms.

Forward-Looking Outlook: Key Factors to Monitor

Looking ahead, investors will likely focus on corporate earnings announcements, domestic macroeconomic indicators, and regional geopolitical developments. Equity indices may experience moderate volatility as market participants assess short-term earnings trends and potential interest rate policy adjustments. Bond market stability is expected to continue, though inflation-linked instruments may see shifts in response to economic data.

Traders and institutional investors should maintain a close watch on sector rotations, liquidity conditions, and cross-asset correlations. Tactical positioning in equities, coupled with disciplined fixed-income strategies, will be essential to navigate the current environment. Monitoring market breadth, turnover levels, and macro drivers will provide early signals for strategic portfolio adjustments in the days ahead.