Israeli financial markets closed Friday, January 9, 2026, on a firmer footing as investors returned to selective buying after Thursday’s modest decline. Trading on the Tel Aviv Stock Exchange reflected renewed confidence, with equities advancing broadly and bonds posting small gains, suggesting that the early-year uptrend remains intact despite recent volatility.

TA-35 Reclaims Momentum as Blue Chips Lead Higher

Large-cap stocks provided the foundation for the rebound. The TA-35 rose 0.71 percent to close at 3,857.77 points, recovering a portion of the prior session’s losses. Advancing stocks outnumbered decliners, with 20 gains against 15 declines, signaling a more balanced but constructive tone.

Trading activity remained solid, with turnover exceeding 1.06 billion shekels within the index. The intraday chart showed steady accumulation rather than a late-session spike, suggesting that buyers were active throughout the day. Strength in heavyweight constituents helped stabilize sentiment, indicating that investors remain comfortable maintaining exposure to Israel’s most liquid names as the market digests recent gains.

Mid-Caps and Banks Extend the Upside

Performance beyond large caps was notably strong, reinforcing the risk-on message. The TA-90 advanced 0.90 percent to 4,117.38 points, while the combined TA-90 and Banks index gained 1.01 percent. In both indices, increases significantly outnumbered declines, highlighting broad participation and renewed appetite for growth-oriented and financial stocks.
The TA-125 climbed 0.73 percent, supported by 84 advancing securities versus 33 decliners. Value stocks also joined the rebound, with the TA-125 Value Index rising 0.78 percent, while the TA Sector-Balance Index added 0.59 percent. This alignment across styles and sectors suggests that today’s advance was not narrowly driven, but rather reflected improving confidence following the brief consolidation earlier in the week.

Equity market turnover totaled approximately 1.93 billion shekels, lower than earlier peak sessions but consistent with a steady re-engagement of buyers. The combination of rising prices and healthy participation points to orderly accumulation rather than speculative chasing.

Bond Markets Firm, Supporting Overall Market Stability

Fixed income markets continued to provide a supportive backdrop. Short-term bonds rose 0.06 percent, while the All-Bond General Index added 0.05 percent, driven by gains across hundreds of individual securities. Inflation-linked bonds also finished higher, with Tel Bond-Adjacent A advancing 0.11 percent.

Bond market turnover reached roughly 2.72 billion shekels, exceeding equity turnover and underscoring active portfolio rebalancing. The modest gains across bond indices indicate that investors are not abandoning defensive assets, but instead maintaining balanced exposure. This coexistence of equity and bond strength often reflects confidence in near-term stability rather than heightened risk aversion.

Looking ahead, investors will be watching whether this rebound develops into renewed upward momentum or gives way to another consolidation phase. Key factors to monitor include follow-through buying in banks and mid-cap stocks, shifts in market breadth, and developments in global markets that could influence local sentiment. Opportunities may arise if leadership remains broad and pullbacks continue to be shallow, while risks would increase if volatility returns or bond markets begin to weaken more decisively. As January progresses, upcoming sessions should provide clearer signals on whether Israel’s market is resuming its early-year advance or settling into a more range-bound pattern.