The Israeli capital market reached a historic milestone this week as the Tel Aviv Stock Exchange (TASE) successfully completed its first full week of Monday-to-Friday trading. Amidst this structural shift designed to align with global financial hubs, the TA-90 index demonstrated remarkable resilience, surging to a new peak of 4,117.38 points. This upward trajectory underscores a broader bullish sentiment as local and foreign investors recalibrate their portfolios for the 2026 fiscal year.

Record-Breaking Performance and Market Breadth

The TA-90 index, which tracks the 90 largest stocks on the exchange not included in the TA-35, closed the week at its absolute 52-week high. The data shows a steady climb from the 3,950 level at the start of the week to its final Friday close, marking a 0.90% daily increase in the final session alone. This performance is particularly noteworthy given the index’s 52-week range of 2,437.29 to 4,117.38, representing a staggering recovery and growth phase for the Israeli mid-cap sector. The market capitalization of the index now stands as a testament to the diversification of the Israeli economy, with significant contributions from renewable energy, high-tech, and financial services.

Impact of the Global Trading Alignment

A primary driver for the week’s activity was the strategic transition to a Monday-Friday schedule, which officially eliminated the “Sunday Gap” that previously decoupled Israel from Wall Street and European markets. By aligning with international standards, the TASE has lowered the barrier for institutional investors and MSCI-indexed funds to trade in real-time alongside global peers. This shift was reflected in the average volume of over 33.5 million, suggesting that the increased accessibility is already translating into deeper liquidity and reduced volatility for the TA-90 constituents.

Sector Highlights and Emerging Trends

Individual performance within the index remained largely positive, led by growth stocks in the technology and defense sectors. While certain heavyweights like Bet Shemesh Engines saw minor profit-taking corrections, top gainers such as Tower Semiconductor and Max Stock provided the necessary momentum to break through resistance levels. The mountain chart profile for the week indicates that after a sharp mid-week rally, the index found a stable support floor near 4,080, allowing it to consolidate before the final push to record territory.

The outlook for the TA-90 remains constructive, though investors should maintain a watchful eye on macroeconomic indicators and geopolitical developments that could test current valuation levels. The immediate opportunity lies in the continued integration of the TASE into global portfolios, which may provide a liquidity cushion even in the face of interest rate uncertainty. However, the primary risk to monitor is the potential for overextension; with the Relative Strength Index (RSI) approaching overbought territory, a period of healthy consolidation may be expected. Moving forward, the strategic implications of the new trading week will be the key metric to watch as the market settles into its new rhythm.