The Tel Aviv Stock Exchange opened on January 29, 2026 with positive momentum as key equity indices climbed. Investors are navigating a mix of local economic data and global market developments, resulting in measured gains across the TA-35, TA-90, and TA-125 benchmarks. Overall trading volumes suggest active participation, particularly in high-liquidity equities, while fixed-income instruments show selective movements reflecting ongoing risk management strategies.

Equity Market Performance

The TA-35 rose 1.04% to 4,021.83 points, with 17 stocks advancing and 18 declining, highlighting a relatively balanced market breadth. The broader TA-125 index gained 0.92% to 4,027.96 points, supported by 78 advancing securities against 40 declining, demonstrating leadership among larger and mid-cap companies. The TA-90 recorded a 0.50% increase to 4,074.57 points, with a healthy mix of gains across 61 advancing stocks. Notably, the TA-125 Banks and sector-balanced indices exhibited moderate increases of 0.30% and 0.66% respectively, indicating that financials and diversified sectors are contributing to overall market resilience. Total equity market turnover reached approximately 248,964 thousand NIS, signaling robust participation amid cautious optimism.

Fixed-Income Markets and Bond Activity

Bond market indices showed limited movement, with the All-Bond General Index declining 0.05% to 422.94 points and short-term bonds under one year dipping 0.01% to 466.54 points. Inflation-linked bonds reflected minor adjustments, with the Tel-Bond Linked A flat at 421.96 points and the Tel-Bond 60 Linked slightly down 0.06% at 415.79 points. Trading volumes in bonds totaled 56,955 thousand NIS, with mixed activity across sectors, as investors selectively rotated capital between equities and fixed-income products to optimize risk and liquidity profiles. The modest declines in short-term fixed-income instruments suggest that participants are weighing yield opportunities against potential market volatility.

Market Breadth and Sector Insights

Market breadth indicates a cautious but broadly positive investor sentiment. While gains were widespread, several equities remained unchanged, underscoring selective allocation and strategic positioning. Sector analysis shows that financials and balanced sectors led the charge, while certain defensive and small-cap stocks lagged, reflecting ongoing sensitivity to macroeconomic updates and investor appetite for stability. The turnover pattern further suggests that high-liquidity names continue to attract both institutional and retail attention, with the balance between advancing and declining stocks providing insight into market rotation dynamics.

Outlook and Key Considerations

Looking ahead, investors should monitor potential catalysts including upcoming macroeconomic data, corporate earnings reports, and central bank signals, which may influence equity and bond movements. Geopolitical developments and currency fluctuations, particularly in the shekel-dollar relationship, remain relevant for portfolio adjustments. Market participants are expected to continue balancing capital preservation with tactical allocation, leveraging high-liquidity equities and selective bond exposure to navigate potential volatility. Monitoring turnover trends, sector performance, and risk-adjusted flows will be critical for anticipating shifts in market sentiment and informing strategic investment decisions in the coming sessions.