The Tel Aviv Stock Exchange (TASE) has entered 2026 with a dual display of strength: a record-breaking performance for its benchmark indices and a long-awaited structural shift in its operating hours. The TA-125 index, a critical benchmark of the Israeli economy, rose sharply to 3,733.08 points on the first day of the year, setting a positive tone for a year expected to be defined by increased international accessibility. This momentum comes at a pivotal moment as Israel seeks to integrate more deeply into the global capital market through the elimination of Sunday trading in favor of a standard Friday session.

Strong Gains Led by Banking and Tech

The 1.90% jump in the TA-125 was largely driven by heavyweights in the finance and technology sectors. High-tech remains the dominant force in the index with a 34.17% weight, while financial institutions follow closely at 32.54%. Specific standouts included Israel Discount Bank and Mizrahi Tefahot, which saw daily gains of 4.41% and 4.77% respectively, reflecting a robust investment climate for local lenders. These gains helped the index reach a new intraday high of 3,733.08, well above its 52-week low of 2,306.59.

The Strategic Shift to Friday Trading

Starting the week of January 5, the TASE will move to a Monday-through-Friday schedule, a move endorsed by the Ministry of Finance and the Bank of Israel to attract more foreign investors. Historically, the TASE was one of the few global exchanges operating on Sundays, which often isolated it from international market flows. The new schedule includes a shortened Friday session from 10:00 to 14:00, carefully designed to align with European markets while respecting local Sabbath observations.

Outlook: Targeting Global Indices

The outlook for the TA-125 remains anchored in its potential for index inclusion. By synchronizing with global trading days, the TASE aims to remove a significant barrier that has previously prevented Israeli equities from being fully represented in major global indices. Investors should watch for increased liquidity and higher average volume as international funds find it easier to execute trades in real-time alongside other developed markets. While risks such as regional volatility and domestic inflation remain, the transition marks a strategic opportunity to strengthen the Israeli economy and the attractiveness of its local capital market.