Israeli markets closed higher on Wednesday, December 17, continuing the positive momentum built over recent sessions. Equities advanced across all major indices, supported by strong market breadth and rising trading activity, while bonds also recorded broad gains. The synchronized strength across asset classes reflects a constructive shift in investor sentiment as markets approach the latter part of December.

TA-35 Strengthens as Blue Chips Drive Market Confidence

The TA-35 index climbed 0.77% to 3,635.08 points, underpinned by solid participation across its constituents. Advancers outnumbered decliners by nearly two to one, with 23 stocks rising and only 12 falling. This breadth highlights renewed confidence in Israel’s largest and most liquid companies, which continue to act as the backbone of the market’s recovery.

Investor interest focused on sectors perceived as resilient, including financials, industrials, and select technology names. These areas have benefited from stabilizing global equity markets and easing concerns around near-term macroeconomic shocks.

Although volatility remains present, the steady ascent of the TA-35 suggests institutional investors are gradually increasing exposure rather than chasing short-term gains. With equity turnover exceeding ₪4.6 billion, the session reflected conviction-driven buying rather than thin trading conditions.

Mid-Caps and Banks Maintain Momentum as Risk Appetite Improves

Mid-cap stocks continued to outperform, with the TA-90 rising 0.88% to 3,763.34 points. Market breadth remained constructive, as 52 stocks advanced against 28 decliners, alongside a small number of unchanged names. This performance indicates ongoing confidence in domestically oriented companies that tend to benefit from improving local sentiment and liquidity conditions.

The TA-90 & Banks index gained 0.69%, reinforcing the banking sector’s role in the broader market upswing. Financial stocks have drawn support from expectations of stable credit demand and manageable funding conditions, as well as from rising activity levels in capital markets.

With more than half of the index constituents advancing, the move suggests a healthy continuation rather than a late-stage surge. The broader TA-125 index rose 0.78%, reflecting strength across market capitalizations.

Value-oriented stocks also participated meaningfully, with the TA-125 Value Index adding 0.74%. Meanwhile, the TA Sector-Balance index advanced 0.89%, confirming that gains were well distributed across industries rather than concentrated in a narrow group of stocks.

Bond Market Advances Again, Supporting a Balanced Risk Environment

The bond market delivered another positive session, reinforcing the notion that investors are maintaining balanced portfolios rather than rotating aggressively between asset classes. The All-Bond General Index rose 0.09%, supported by an overwhelming majority of advancing securities. This broad participation signals continued confidence in fixed income as a stabilizing component of portfolios.

Short-term bonds edged higher by 0.01%, maintaining their role as low-volatility instruments amid ongoing equity gains. Inflation-linked bonds also posted firm advances, with Tel-Bond Linked A up 0.06% and Tel-Bond 60 Linked rising 0.15%. These moves suggest stable inflation expectations and steady demand for real-return protection.

Bond-market turnover reached approximately ₪3.45 billion, highlighting active engagement from institutional investors. The parallel rise in both equities and bonds points to improving overall market confidence rather than a defensive shift driven by risk aversion.

Looking ahead, the continued advance across Israeli equities and bonds suggests a market environment that is gradually rebuilding confidence after earlier periods of volatility. Investors will be monitoring global interest-rate developments, upcoming inflation data, and geopolitical signals for confirmation that the current momentum can persist.

Opportunities may remain in mid-cap and financial stocks if liquidity stays supportive, while blue chips continue to offer relative stability. At the same time, risks tied to external market shocks, year-end positioning, and sudden shifts in global sentiment remain present. Watching market breadth, trading volumes, and cross-asset correlations will be critical in assessing whether this rally can extend into the final weeks of the year.