Israeli markets closed on Wednesday, December 10, delivering another mixed performance as investors balanced strong appetite for large-cap equities against renewed caution in mid-cap names. The divergence between blue chips and the broader market highlighted shifting sentiment shaped by global macroeconomic expectations, sector rotation, and evolving risk perception. Meanwhile, the bond market remained steady, signaling continued demand for defensive instruments even as select equity sectors outperformed.

TA-35 Strengthens as Large Caps Lead Market Performance

The TA-35 rose 1.00% to 3,604.65 points, marking a robust session for Israel’s benchmark index. Market breadth was positive, with 19 advancers outnumbering 16 decliners. Strong inflows into financial, industrial, and technology heavyweights helped support the index’s upward trajectory. Investors appear increasingly focused on high-quality, defensive sectors with consistent earnings visibility and lower sensitivity to domestic economic pressures. This preference aligns with broader global market behavior, where large-cap stocks have benefited from stabilizing interest-rate expectations and easing volatility. The TA-35’s steady performance reflects growing confidence that top-tier Israeli companies remain well positioned despite macro-level uncertainty. High turnover levels suggest that institutional investors continue reinforcing their exposure to large caps as a strategic anchor.

Mid-Caps Struggle as TA-90 Suffers Broad Declines

In contrast to the strength among blue chips, the TA-90 fell 0.58% to 3,658.78 points, driven by widespread weakness across mid-cap names. Decliners significantly outnumbered advancers, with 62 stocks falling compared to just 27 rising. This sharp imbalance highlights investor caution toward companies more sensitive to domestic demand and economic fluctuations. The TA-90 & Banks Index managed a modest 0.17% gain, buoyed by strength in select financial names despite broader market weakness. However, the group also saw 62 decliners, suggesting that resilience was concentrated in a handful of key players rather than the sector as a whole. The broader TA-125 index rose 0.63%, supported primarily by large-cap constituents rather than mid-cap participation. The TA-125 Value Index similarly gained 0.65%, signaling ongoing interest in value-driven names, even as growth and cyclical segments saw mixed sentiment. The divergence between indices highlights a market environment where investors are selectively rotating into perceived stability while trimming riskier exposures.

Bond Market Stable with Slight Gains in Defensive Segments

The fixed-income market remained calm, offering incremental support to investors seeking reduced volatility. The Short-Term Bond Index edged up 0.01%, supported by 43 advancing securities against only 7 declines. This indicates continued interest in near-duration assets that serve as defensive hedges during periods of equity uncertainty. Inflation-linked bonds also saw mild gains, with Tel-Bond Linked A rising 0.06%. Tel-Bond 60 Linked slipped slightly by 0.03%, reflecting a neutral overall stance on inflation expectations. The All-Bond General Index dipped only 0.02%, with advancers (278) slightly outpacing decliners (218). This balanced performance illustrates a stable fixed-income environment, with investors neither aggressively selling nor significantly increasing exposure. Continued healthy turnover reinforces confidence in market liquidity and pricing stability across bond categories.

Looking ahead, today’s mixed results suggest a market navigating competing forces: strong global equity momentum supporting large caps, and localized concerns weighing on mid-caps and cyclical sectors. Investors will be watching key developments such as central bank policy updates, inflation releases, and corporate forecasts to assess market direction. Opportunities may arise within value and large-cap segments that continue to display resilience, while risks remain tied to potential volatility in global markets, domestic economic softening, or sector-specific disruptions. Monitoring sector rotation, overall market breadth, and bond-equity correlations will be critical as Israeli markets move deeper into December.