The Tel Aviv market opened on January 7, 2026 with modest gains across key indices as investors continue to digest early-year macro signals and corporate outlooks. While equities showed broad-based participation, trading volumes suggest selective risk-taking and cautious positioning following the holiday period. Bond markets remained stable, highlighting a measured approach to fixed income amid global market uncertainty.

Equity Market Performance and Sector Trends

The TA-35 index rose 0.33 percent to 3,857.95 points, with 19 stocks advancing, 13 declining, and three remaining unchanged. Mid- and small-cap indices, including TA-90 and TA-125, recorded gains of 0.36 percent and 0.34 percent, respectively, with sector rotation visible across banking, technology, and industrial stocks. The TA-90 Banks index mirrored this trend with a 0.36 percent increase, indicating investor confidence in select financials despite low trading activity. Market participants appear focused on early-year positioning, balancing optimism about corporate earnings with caution over macroeconomic developments.

Bond Market Stability and Investor Sentiment

Bond indices demonstrated steady performance at the market open, reinforcing a cautious investor stance. The All-Bond General Index increased 0.03 percent to 424.14 points, while short-term bonds recorded negligible movement, reflecting stability in near-term interest rate expectations. Inflation-linked bond indices, including Bond 60 and Bond-Coupled A, rose between 0.03 percent and 0.06 percent. These modest gains indicate that investors are maintaining diversified positions across fixed-income instruments while monitoring global central bank policy and domestic economic signals.

Liquidity, Volumes, and Market Microstructure

Total trading volume in the equity market reached NIS 474.9 million in early trading, a moderate level compared to post-holiday sessions. The relatively low turnover suggests that institutional investors are taking measured positions, likely waiting for global cues from U.S. and European markets. In the bond market, turnover reached approximately NIS 19.7 million, emphasizing cautious credit allocation strategies. The market’s measured liquidity reflects an early-year phase in which investors balance tactical entry into equities with defensive positioning in fixed-income instruments.

Outlook and Key Factors for Investors

As trading continues on January 7, 2026, market participants will be monitoring developments in global equities, particularly the influence of U.S. tech and European financial indices on cross-border capital flows. Domestic investors may continue to favor balanced-sector and mid-cap exposure in equities while preserving allocations in short-term and inflation-linked bonds. Volatility could rise if macroeconomic data or geopolitical events shift investor sentiment. Key factors to watch include liquidity trends, sector rotation, early corporate earnings reports, and interest rate guidance from both domestic and international central banks. Market participants should remain attentive to the interplay between global equity performance and domestic liquidity to navigate the opening weeks of the year effectively.