The Tel Aviv Stock Exchange (TASE) saw generally positive momentum on December 28, 2025, with key equity indices posting gains as investors navigated year-end market dynamics. While stock markets extended modest advances, bond markets showed mixed reactions, reflecting investor attention to macroeconomic signals and ongoing volatility. Market participants are now focused on how these trends will carry over into December 29, 2025 trading.

Equity Market Performance on December 28, 2025

The TA-35 index closed at 3,618.80 points, marking a 0.43% increase, with 22 stocks advancing and 13 declining. The broader TA-90 index showed stronger gains, rising 1.06% to 3,777.63 points, highlighting continued strength in mid- and small-cap equities. The TA-90 & Banks index gained 0.36%, reflecting stability among financial sector shares, while the TA-125 index increased 0.56% to 3,647.25 points. Sector-based indices, including the TA Sector-Balance, rose 0.63%, emphasizing investor preference for diversified, risk-balanced positions. Total trading volume in equities reached approximately 2.14 billion ILS, indicating sustained market participation despite the holiday-adjacent period.

Investor sentiment appeared cautiously optimistic, with year-end positioning contributing to selective buying in both large-cap and mid-cap sectors. Analysts noted that while gains were modest, the breadth of advancing stocks suggested a healthy underlying demand in the equity market.

Bond Market Overview

Bond market activity on December 28 showed a mixed picture. The All-Bond General Index increased slightly by 0.05% to 420.08 points, with 289 advancing issues against 218 decliners. Short-term bonds up to one year remained flat at 465.07 points, reflecting stability in government yields. Indexed bonds experienced marginal fluctuations, with the TA-125 Indexed down 0.02% and TA Linked Bonds A decreasing 0.05%. Conversely, the TA-60 Indexed Bonds rose 0.02%, reflecting selective investor interest in medium-term inflation-protected instruments. Bond trading volumes were robust, totaling approximately 2.22 billion ILS, underscoring continued market liquidity and active repositioning by institutional investors.

The slight mixed results highlight investor sensitivity to interest rate expectations, inflation forecasts, and year-end balance sheet adjustments. Market analysts suggest that bond investors are focusing on capital preservation while selectively capturing small yield opportunities.

Market Sentiment and Sector Dynamics

Across the TASE, the number of advancing equities exceeded declining ones in major indices, pointing to an overall positive market tone. Notably, sectors emphasizing balanced exposure and risk management outperformed, suggesting a cautious approach by investors amid uncertain global macroeconomic conditions. The equity-bond divergence, with equities gaining and some bonds slightly declining, indicates selective risk appetite and rotation strategies. Market participants are likely adjusting portfolios ahead of potential global market announcements, which could influence trading on December 29, 2025.

Outlook for December 29, 2025

Looking ahead, the TASE is expected to open with cautious optimism as investors digest December 28 gains and evaluate macroeconomic indicators. Key factors to monitor include sector performance in banking and technology, bond yield movements, and trading volumes, which may signal shifts in market sentiment. Global market cues, especially from U.S. and European indices, could further influence domestic trading. Market watchers will also be attentive to liquidity conditions and end-of-year portfolio adjustments, which typically drive volatility in late December sessions.

Overall, while December 28 provided measured gains in equity indices, the market remains sensitive to broader economic developments and investor positioning, setting the stage for an active December 29 trading session.