The Israeli stock market closed mixed on Friday, November 8, with blue-chip shares outperforming while mid-cap and sector-specific indexes lagged behind. The TA-35 Index advanced 0.50% to 3,389.21 points, supported by gains in financial, energy, and industrial sectors. Meanwhile, the TA-90 Index slipped 0.19% to 3,622.50, reflecting weakness among smaller growth-oriented companies.

Despite divergent performances across indexes, overall sentiment was relatively positive, with investors balancing optimism about domestic economic resilience against cautious global market conditions. Trading activity remained moderate, with total equity turnover exceeding 2.9 billion shekels, indicating sustained institutional participation.

Large-Cap Stocks Lead Gains as Blue-Chip Index Climbs

The TA-35 Index, comprising Israel’s largest publicly traded companies, led Friday’s gains, advancing 0.50% as investors favored stable, high-cap stocks amid ongoing global market volatility. The rally was driven by strength in financial and infrastructure names, which benefited from steady earnings expectations and firm domestic demand.

Market breadth was slightly negative, with 15 stocks advancing, 18 declining, and 2 unchanged, but the overall index managed to hold higher on strong institutional buying in select sectors. Analysts attributed the resilience of the TA-35 to defensive positioning, as investors sought stability in large-cap names with reliable dividend yields.

The TA-125 Index, which includes both large- and mid-cap stocks, added 0.31% to 3,439.57 points, reflecting modest optimism in the broader market. Gains in blue-chip financials and energy firms offset losses in mid-tier technology and healthcare stocks, helping the index close in positive territory for a second consecutive session.

Mid-Cap and Sector Indexes Face Selling Pressure

In contrast to large caps, the TA-90 Index fell 0.19% to 3,622.50 points, weighed down by declines in smaller financials and consumer-focused stocks. The underperformance of the mid-cap segment suggested that investors remain cautious toward riskier assets amid lingering macroeconomic uncertainties.

The TA-90 and Banks Index rose 0.35% to 3,745.10 points, showing resilience among bank shares, which continue to benefit from higher interest margins and solid balance sheets. However, the TA Sector-Balanced Index edged down 0.01% to 4,015.07 points, signaling mixed performance across industries. Out of its constituents, 57 stocks declined compared to 38 gainers, indicating slightly negative market breadth.

Analysts noted that while mid-cap stocks have shown long-term growth potential, investors are currently gravitating toward more defensive positions, favoring sectors with predictable earnings amid volatile global conditions.

Bond Markets Steady as Investors Favor Short-Term Instruments

Israel’s bond market remained largely stable, reflecting steady investor demand for fixed-income securities. The Short-Term Bond Index gained 0.02% to 462.97 points, highlighting a preference for low-duration instruments amid global rate uncertainty.

Meanwhile, the All-Bond General Index advanced 0.03%, supported by modest buying in government and corporate bonds. However, inflation-linked indexes saw slight declines, with the Tel Bond-Linked A falling 0.11% and the Tel Bond 60 Linked down 0.06%, indicating limited demand for longer-term inflation-protected assets.

Total bond trading volume reached 4.31 billion shekels, suggesting consistent participation from institutional investors. Analysts emphasized that the stability of Israel’s bond market underscores confidence in the country’s monetary framework and the Bank of Israel’s careful approach to managing inflation.

Outlook: Investors Focus on Earnings Stability and Global Trends

Looking ahead, Israeli markets are expected to trade cautiously as investors monitor upcoming corporate earnings, inflation data, and global monetary developments. With large-cap equities showing resilience and bond yields stabilizing, market participants appear focused on maintaining balanced portfolios.

Potential risks include persistent global volatility, shifting interest rate expectations, and geopolitical developments that could affect capital flows. However, opportunities remain in dividend-rich sectors such as banking, utilities, and infrastructure, which continue to attract long-term investors seeking stability and steady returns.

For now, traders are likely to adopt a selective approach — emphasizing quality and liquidity — while awaiting clearer signals on domestic growth and global market direction as November progresses.