Israeli equities ended Friday’s session with mixed but resilient performance as gains across mid-cap and value stocks helped offset weakness in large-cap companies. Although the headline TA-35 Index declined modestly, strong market breadth allowed the broader TA-125 benchmark to finish slightly higher, extending the market’s positive momentum into a third consecutive trading session.

Trading activity was lighter than earlier in the week, a common feature of shorter trading sessions, but investors continued to show confidence across both equity and fixed-income markets as July began on constructive footing.

TA-125 Maintains Positive Momentum Despite Decline in Blue-Chip Shares

The benchmark TA-125 Index edged up 0.03% to close at 4,099.62 points, preserving its gains after two strong sessions earlier in the week. Market breadth remained encouraging, with 101 advancing securities compared with only 24 decliners, indicating that buying interest remained widespread despite the nearly unchanged headline index.

The TA-35 Index slipped 0.44% to finish at 4,123.88 points. While the decline among Israel’s largest companies weighed on the broader market, twenty-five blue-chip stocks still advanced against ten decliners, suggesting that weakness was concentrated in a limited number of heavily weighted constituents.

Stock market turnover totaled approximately NIS 1.98 billion, considerably lower than previous sessions. The lighter volume reflects a quieter trading environment rather than broad selling pressure, as advancing stocks continued to significantly outnumber declining issues across the market.

The ability of the TA-125 to remain above the 4,000-point level reinforces the importance of this technical support zone following the volatility experienced during June.

Mid-Cap and Value Stocks Continue to Drive Investor Confidence

Mid-cap shares once again delivered the strongest performance of the session. The TA-90 Index climbed 1.63% to 4,013.26 points, supported by 76 advancing stocks against only 14 decliners. The performance demonstrates continued investor demand for companies outside the largest market capitalizations.

The combined TA-90 and Banks Index gained 1.39% to close at 4,012.65 points, reflecting strength across financial institutions and broader mid-cap companies.

Value-oriented shares also continued their recent recovery. The TA-125 Value Index advanced 1.01% to 4,003.29 points, while the Tel Aviv Sector-Balance Index rose 0.59% to 4,729.44 points after 79 stocks advanced compared with just 21 decliners.

The divergence between the slightly weaker TA-35 and the stronger mid-cap indices suggests investors are broadening their exposure beyond traditional blue-chip holdings, a positive sign for overall market participation.

Bond Market Extends Gains as Fixed Income Remains Stable

Israel’s bond market recorded another positive trading session, adding to the constructive tone across financial markets.

The All-Bond General Index gained 0.07% to close at 432.67 points. Advancing bond issues totaled 356 compared with 111 decliners, while 108 securities finished unchanged, indicating stable conditions across the fixed-income market.

Corporate bonds also posted modest gains. The Tel Bond-Adjoined A Index increased 0.07% to 438.08 points, while the Tel Bond 60 Adjacent Index advanced 0.06% to 427.97 points. The short-term bond index climbed 0.05% to 476.06 points, continuing its steady upward trend.

Bond market turnover reached approximately NIS 2.25 billion, complementing the lighter activity seen in equities while maintaining positive price momentum.

The continued gains across both stocks and bonds suggest investors remain comfortable with current market conditions despite lower trading volumes heading into the weekend.

Looking ahead, investors will watch whether the broad participation seen during the opening week of July can continue despite softer activity in large-cap stocks. Sustained strength in the TA-90 and value-oriented shares could provide additional support for the broader market if blue-chip stocks regain momentum. Attention will also remain focused on corporate developments, economic indicators, central bank expectations, and geopolitical events that may influence investor sentiment. If market breadth remains as strong as recent sessions while trading volumes gradually improve, Israeli equities could continue extending their recovery through the early weeks of the third quarter.