The Israeli market closed on November 18, 2025 with a broad and sharp downturn, as equity benchmarks recorded meaningful declines across nearly all major sectors. Investors adopted a defensive tone amid global uncertainties, heavier selling pressure, and lackluster appetite for risk assets. The session reflected not only declines in equity indices but also modest weakness in bond markets, indicating caution across the broader financial landscape.

Equity Indices Face Broad Declines

Israel’s flagship TA-35 index fell 1.90% to 3,385.71 points, with 28 constituents trading lower and only five advancing. The decline was accompanied by strong turnover of over 2.5 billion shekels, highlighting heightened investor activity during the selloff.

The TA-90 index mirrored this trend, dropping 1.85% to 3,604.91, with 80 stocks retreating and none finishing unchanged.

The broader TA-125 index experienced the same magnitude of decline at 1.90%, settling at 3,431.45 points. With 108 constituents falling and only 15 gaining, the breadth of the downturn illustrated a market-wide pullback rather than sector-specific weakness. Elevated trading volumes across these indices underscored the intensity of the session’s risk-off move, suggesting institutional participation in the market’s downward momentum.

Sector Balances and Value Indexes Add to the Negative Tone

The TA-Sector Balance index slipped 1.78% to 4,012.02, signaling broad sectoral weakness spanning technology, financials, real estate, and consumer-linked names.

Meanwhile, the TA-125 Value index dropped 1.42%, showing that value-oriented stocks were not insulated from the downturn.

Banks and financial-heavy composites, represented by the TA-90 & Banks index, fell 1.55%. Although this decline was slightly milder relative to broader indices, heavy sector volume exceeding 1.3 billion shekels indicated active repositioning within financial stocks. The selling pressure suggests that investors were recalibrating expectations surrounding interest-rate paths, credit conditions, and geopolitical risks affecting domestic institutions.

Bond Market Softens but Remains More Resilient Than Equities

While equities experienced steep declines, Israel’s bond market showed only modest weakness. The All-Bond General Index dipped 0.09%, reflecting slight risk aversion but not a wholesale exit from fixed income.

Short-term bonds, represented by the Bond Index up to One Year, fell just 0.01%, indicating relative stability in near-term debt instruments.

Inflation-linked bond indices posted slightly larger declines, with:

• Tel-Bond Linked A down 0.13%

• Tel-Bond 60 Linked down 0.15%

Trading volumes remained robust across bond segments, suggesting that investors were adjusting portfolios but not abandoning bonds altogether. Overall, fixed-income instruments provided partial shelter from equity volatility, though sentiment remained cautious.

The session’s mixed but mostly negative performance across asset classes highlights a market grappling with both local and global uncertainties. Looking ahead, investors will be monitoring upcoming economic indicators, central bank commentary, and geopolitical developments that could influence risk appetite. Key areas to watch include inflation trends, corporate earnings resilience, and liquidity conditions across equity and bond markets.

Opportunities may arise if valuations compress to attractive levels, but risks remain elevated — making disciplined positioning and close monitoring of market signals essential in the days ahead.