The Tel Aviv Stock Exchange closed slightly higher on Monday, November 3 (Asia), as investors balanced optimism in mid-cap and financial stocks with caution surrounding global economic trends. Gains across the TA-90 and TA-125 reflected resilient domestic sentiment, while bond markets continued to demonstrate steady demand amid a stable inflation outlook.

Equity Markets Post Modest Gains

Israel’s leading indices ended the session in positive territory, with trading data pointing to moderate investor participation. The TA-35 Index inched up 0.01% to 3,434.29 points, supported by selective buying in industrial and technology sectors. Out of 35 companies listed, 16 advanced, 19 declined, and none remained unchanged, indicating a balanced trading session.

The TA-90 Index outperformed, rising 0.67% to 3,702.82 points, fueled by renewed strength in mid-sized firms and the financial sector. The TA-90 and Banks Index followed suit with a 0.32% increase to 3,819.92 points, supported by healthy trading volumes exceeding 1.2 billion shekels.

The broader TA-125 Index, which combines Israel’s largest and mid-sized companies, gained 0.15% to 3,491.28 points, while the TA-125 Value Index rose 0.40%, highlighting renewed interest in value-oriented and dividend-paying stocks. The TA-Sector Balance Index also improved 0.26%, underscoring broad-based stability across multiple sectors.

Bond Market Holds Steady with Mild Upside

Israel’s bond market extended its upward trend, reflecting investor confidence in the nation’s monetary and fiscal outlook. The All-Bond General Index advanced 0.09%, driven by gains in both government and corporate bonds, with total trading volume surpassing 4.3 billion shekels.

Short-term and inflation-linked bonds showed modest but consistent appreciation. The Short-Term Bond Index increased 0.05% to 463.35 points, while the Tel-Bond Linked A Index rose 0.19%. Similarly, the Tel-Bond 60 Linked Index edged up 0.08%, marking continued demand for inflation-protected securities.

Out of hundreds of traded bonds, 445 advanced and only 58 declined, reinforcing the perception of a resilient fixed-income environment. Analysts attribute the stable bond performance to moderate inflation expectations and steady institutional demand for lower-risk assets.

Sector Activity and Market Dynamics

Sector data showed a steady rotation into financials, industrials, and balanced funds. The banking sector, which has been a consistent source of support for the local market, saw moderate inflows as investors continued to favor dividend stability and earnings visibility.

Technology and infrastructure-related equities remained resilient, contributing to the broader TA-90 and TA-125 gains. Despite global market headwinds, local investors appear to maintain confidence in Israel’s corporate fundamentals. Trading activity remained solid, with combined equity and bond turnover surpassing 12 billion shekels across the session.

Market Outlook and Key Factors to Watch

As the Tel Aviv market moves deeper into November, investors are likely to monitor several key factors influencing short-term direction. Global interest rate policy, regional geopolitical developments, and domestic inflation data remain the primary variables shaping sentiment.

While risk appetite has improved, potential headwinds persist — particularly from global volatility, currency fluctuations, and external demand uncertainty. On the positive side, Israel’s robust banking sector, stable bond performance, and improving mid-cap activity present opportunities for selective gains.

If global conditions remain steady and inflation continues to moderate, the Tel Aviv Stock Exchange could sustain its gradual upward trajectory. Investors will be watching for confirmation from upcoming economic releases and earnings reports to determine whether this cautious optimism can translate into stronger momentum through the end of the month.