Israeli markets closed Thursday in positive territory, extending the constructive tone that has characterized trading through mid-December. Equities posted broad gains across large caps, mid-caps, and value segments, while bonds also advanced, reflecting balanced inflows rather than narrow risk-taking. Elevated turnover in both equities and fixed income points to conviction-driven participation as investors position into year-end.

Blue-Chip Leadership Anchors the Advance

The TA-35 climbed 0.77% to 3,635.08, supported by decisive participation among its constituents. Advancers outnumbered decliners by nearly two to one, a sign that buying interest was not limited to a handful of heavyweights. The session’s equity turnover reached approximately ₪4.6 billion, highlighting robust institutional engagement. Leadership came from financials, industrials, and select technology names—sectors that have benefited from improving global sentiment and steady domestic liquidity. The TA-35’s steady ascent suggests measured accumulation rather than speculative chasing, indicating confidence in earnings durability and balance-sheet strength among Israel’s largest companies. As volatility remains contained, blue chips continue to serve as the market’s stabilizing core.

Mid-Caps and Banks Extend the Uptrend

Mid-cap performance remained a key driver of the day’s gains. The TA-90 advanced 0.88% to 3,763.34, with 52 advancers against 28 decliners and a modest number of unchanged stocks. This breadth confirms that investor interest extends beyond large caps into domestically oriented companies, a hallmark of improving risk appetite. The TA-90 & Banks index rose 0.69%, reinforcing the financial sector’s role in the broader rally. Banking shares have drawn steady demand amid expectations for stable credit conditions, resilient capital positions, and continued market activity. With more than half of constituents advancing, the move reflects sustained confidence rather than short-term positioning. The broader TA-125 gained 0.78%, while the TA-125 Value Index added 0.74%, indicating that value-oriented stocks are participating meaningfully alongside growth names. The TA Sector-Balance index climbed 0.89%, further validating that gains were widely distributed across industries rather than concentrated in a narrow theme.

Bond Market Strength Confirms a Balanced Risk Environment

Fixed income delivered another solid session, reinforcing the sense of stability underpinning the equity advance. The All-Bond General Index rose 0.09%, supported by an overwhelming majority of advancing securities. Such breadth points to institutional confidence in bonds as a portfolio anchor even as equities climb. Short-term bonds edged up 0.01%, maintaining their role as low-volatility instruments favored for liquidity management. Inflation-linked bonds also performed well, with Tel-Bond Linked A gaining 0.06% and Tel-Bond 60 Linked rising 0.15%. These moves suggest steady inflation expectations and continued demand for real-return protection. Bond-market turnover approached ₪3.45 billion, underscoring active allocation decisions rather than passive holding. The parallel strength in equities and bonds indicates improving overall confidence, supported by liquidity and a constructive macro backdrop.

Looking ahead, the synchronized gains across Israeli equities and bonds suggest momentum could persist into the final stretch of the year, though selectivity will remain important. Investors will be monitoring global interest-rate signals, upcoming macro data, and geopolitical developments for confirmation that conditions remain supportive. Opportunities may continue to emerge in mid-caps, value stocks, and financials if liquidity stays favorable, while blue chips provide stability amid any volatility. At the same time, risks tied to profit-taking, external market shocks, and shifting policy expectations warrant close attention. Watching market breadth, turnover, and cross-asset correlations will be key to assessing whether this advance can extend sustainably into year-end.