Israeli markets closed on Thursday, November 20, with a decisive pullback across the equity landscape as investors adopted a risk-off stance. Major stock indices registered broad declines, reflecting heightened caution around global macroeconomic signals and regional developments. Despite the selling pressure in equities, segments of the bond market held firm, offering a degree of stabilization.

Blue-Chip Index Sees Significant Pressure as Sentiment Weakens

The TA-35 fell 1.05% to 3,359.36 points, marking one of the more notable drops in recent sessions. Out of the index’s components, only seven stocks advanced while 27 declined and one remained unchanged, underscoring the breadth of the downturn. Higher volatility and shifting expectations around global monetary policy contributed to the defensive positioning. The sharp decline suggests investors reassessed exposure to large-cap names amid uncertainty tied to interest rate trajectories and economic data releases abroad. Although earlier in the week blue chips had offered relative stability, today’s results indicate a pivot toward heavier short-term caution.

Mid-Cap, Banks, and Broad Market Indices Post Even Steeper Losses

The TA-90 plunged 1.25% to 3,556.74 points, reflecting deeper weakness in mid-cap stocks. With 71 decliners against just 17 advancers, the index showed the most pronounced negative breadth of the session. These companies, which tend to be more sensitive to domestic business cycles, likely reacted to mounting concerns about consumer demand and funding conditions. Even more notable was the 1.40% decline in the TA-90 & Banks index. Bank-heavy exposure weighed on performance as financial shares mirrored global sector softness. Investors appear increasingly cautious regarding loan growth prospects, credit risk, and the potential for delayed central bank easing. The broader TA-125 index also retreated 1.11%, with 98 stocks in the red. The sharp 1.73% drop in the TA-125 Value Index suggests that value names—often seen as defensive—were not spared, highlighting that Thursday’s retreat was driven more by systemic de-risking than sector-specific concerns.

Bond Market Shows Stability Despite Equity Volatility

While equities faced heavy selling, the bond market displayed resilience. The Short-Term Bond Index edged up 0.01%, supported by 50 advancing securities. This reflects investor preference for lower-duration instruments during periods of elevated uncertainty. Inflation-linked bonds also moved higher, with the Tel-Bond Linked A index gaining 0.07% and the Tel-Bond 60 Linked index rising 0.05%. These modest increases indicate steady demand for inflation protection, even as broader risk sentiment deteriorated. The All-Bond General Index slipped a minor 0.02%, but breadth remained relatively balanced with 269 advancers and 214 decliners. This suggests that fixed-income investors maintained confidence despite the volatility in the equity markets, viewing bonds as a strategic buffer

Looking forward

Today’s widespread declines highlight growing sensitivity toward global market cues and the potential for further volatility. Investors will be closely watching upcoming economic releases, geopolitical developments, and central bank guidance for clues on market direction. Opportunities may arise in oversold segments, particularly among quality blue-chips or short-duration bonds, but risks remain elevated as sentiment adjusts to shifting macroeconomic expectations. Monitoring liquidity conditions, sector rotation, and foreign market influence will be critical as Israel’s markets approach the next trading cycle.