Israeli markets closed on Thursday, December 4, posting a mixed performance that reflected diverging investor sentiment across sectors and market-cap groups. While large-cap equities advanced meaningfully, mid-caps saw renewed pressure, signaling a recalibration of risk appetite after a week of volatility. Bond markets remained relatively stable, with small but steady movements suggesting cautious positioning ahead of upcoming macroeconomic developments.

Large-Cap Strength Pushes TA-35 Higher as Investors Favor Stability

The TA-35 climbed 1.14% to 3,506.55 points, supported by strong performance in blue-chip stocks. With 21 advancers versus 14 decliners, the index demonstrated a constructive breadth profile, highlighting continued investor confidence in Israel’s leading corporations. Sectors such as financials, energy, and technology showed notable resilience, benefiting from global market optimism and a shift toward high-quality names. The index’s upward move follows a modest decline earlier in the week, suggesting renewed buying interest from institutional investors who remain focused on long-term earnings stability. The sizable trading turnover of ₪1.85 billion underscores ongoing engagement in the large-cap space even as geopolitical uncertainties remain in focus. TA-35’s upward trajectory reflects selective rotation toward defensive yet growth-driven sectors, reinforcing its role as an anchor in market sentiment.

Mid-Caps Face Renewed Pressure as TA-90 Declines

In contrast to the strength in large caps, the TA-90 index fell 0.66% to 3,659.21 points. Breadth skewed negative with 52 decliners compared to 36 advancers, signaling investor caution toward mid-sized companies more exposed to domestic market fluctuations. The divergence between TA-35 and TA-90 performance suggests a shift in risk appetite as investors show preference for stability amid uncertainty. Still, the TA-90 & Banks index managed a modest 0.16% increase, driven by pockets of resilience in the banking sector. The broader TA-125 index rose 0.70%, supported primarily by large caps rather than mid-cap participation. Meanwhile, the TA-125 Value Index inched higher by 0.07%, indicating that value-oriented stocks saw only moderate interest compared to their larger growth counterparts. This blend of performance highlights a market environment where investors are becoming more selective, prioritizing sectors and companies with durable revenue profiles and lower perceived risk.

Bond Market Stays Stable with Slight Gains in Short-Term and Linked Indices

The bond market maintained its steady tone during the session. The Short-Term Bond Index increased 0.02%, reflecting consistent demand for low-duration instruments among investors seeking stability. The All-Bond General Index dipped slightly by 0.01%, but breadth remained nearly balanced with 258 advancers versus 243 decliners, indicating stable conditions rather than broad weakness. Inflation-linked instruments showed mild fluctuations: Tel-Bond Linked A slipped 0.02%, while the Tel-Bond 60 Linked rose 0.05%. These movements suggest a neutral inflation outlook, with investors maintaining flexible allocation strategies amid shifting economic expectations. Overall, the fixed-income market demonstrated healthy activity, with turnover nearing ₪3 billion, reinforcing that demand remains intact despite modest yield-driven adjustments.

Looking ahead, today’s mixed market performance underscores the importance of monitoring sector rotations and macroeconomic shifts as December progresses. Investors will be watching for updated inflation data, interest-rate signals from global central banks, and domestic corporate outlooks. Opportunities may emerge in undervalued mid-cap names once volatility stabilizes, while risks include further divergence between market segments and potential shifts in global sentiment. Monitoring liquidity flows, sector performance differentials, and cross-asset dynamics will be essential for navigating the coming trading sessions.