The Tel Aviv stock market opened on February 26, 2026, with mixed activity as investors digested recent trends in equity and bond performance. The broader market reflects cautious sentiment, with the blue-chip TA-35 showing a slight decline while the mid-cap and sector-balanced indices maintain modest gains. Trading volumes suggest moderate liquidity, signaling that market participants are selectively adjusting positions rather than making aggressive moves.

Equity Market Performance

The benchmark TA-35 fell 0.42% to 4,145.54 points, with 14 advancing stocks versus 19 declining and 2 unchanged, reflecting targeted selling pressure among large-cap names. Meanwhile, the broader TA-90 edged up 0.01% to 3,908.85 points, driven by gains in 44 stocks against 19 losers, suggesting rotation toward mid-cap opportunities. The TA-90 Banks Index fell 0.82% to 4,137.59 points, indicating that the banking sector remains under pressure despite positive movements in other segments. Similarly, the TA-125 index declined 0.34% to 4,088.98 points, highlighting a broader cautious tone across larger and mid-cap stocks. Sector-balanced indices like the TA Sector-Balance shed 0.23% to 4,741.91 points, reflecting a mixed appetite for defensive versus cyclical plays within the Israeli market.

Bond Market Trends

Bond indices presented a relatively stable picture. The short-term bond index remained unchanged at 467.86 points, while broader all-bond indices posted marginal declines, with the All-Bond General index down 0.03% to 423.18 points. Specific bond categories, such as TL Bonds-CPI linked A and TL Bonds-60 CPI-linked, fell only 0.05%, indicating limited investor reaction to fixed-income assets amid the equity market fluctuations. Total turnover in the bond market reached 12,208,000 NIS, compared with 74,159,000 NIS in equities, suggesting that fixed-income investors continue to favor holding steady positions while monitoring equity volatility for market signals.

Trading Activity and Investor Behavior

Market liquidity remains moderate, reflecting selective repositioning among institutional and retail investors. The volume of shares traded across the main indices indicates that investors are actively managing exposure to large-cap and high-beta sectors while maintaining exposure to mid- and small-cap equities. Notably, indices such as the TA-125 Value index and TA-125 posted declines of 0.60% and 0.34%, respectively, pointing to cautious risk-taking behavior amid ongoing macroeconomic and sector-specific developments. Investor focus appears concentrated on evaluating daily price fluctuations, sector rotations, and the stability of financial institutions, particularly as banking stocks weigh on benchmark indices.

Forward-Looking Market Considerations

Looking ahead, market participants are likely to continue monitoring the performance of large-cap and banking sector stocks for indications of broader market direction. Key factors include domestic economic indicators, regulatory updates affecting financial institutions, and regional market trends that could influence investor sentiment. Bond markets may provide a relative safe harbor for cautious investors, although monitoring short-term yields and liquidity conditions remains important. For equity investors, mid- and small-cap rotations, sector-specific performance, and corporate earnings announcements will be central to navigating volatility. Overall, the Tel Aviv market is positioned for selective trading strategies, with attention on balancing risk exposure, liquidity management, and identifying emerging opportunities amid fluctuating equity and bond movements.