The Tel Aviv Stock Exchange opened trading on December 22, 2025 with a mixed tone, as modest gains in headline indices contrasted with weaker performance across mid-cap and value-oriented segments. Early session activity suggests investors are navigating the market cautiously, balancing selective equity exposure with defensive positioning in fixed income.

Large-Cap Indices Show Early Stability

The Tel Aviv 35 index advanced 0.31% to 3,693.20 points in morning trade, reflecting continued support for large-cap stocks despite uneven participation. Thirteen stocks posted gains while twenty-one declined, highlighting a narrow leadership structure. Trading turnover reached approximately NIS 104 million, indicating measured engagement rather than aggressive positioning.

The broader Tel Aviv 125 index also traded higher, rising 0.18% to 3,710.94 points. However, market breadth remained negative, with declining stocks outnumbering advancers by a wide margin. This divergence points to a market driven by selective institutional flows rather than broad-based risk appetite. The Tel Aviv 90 and Banks index edged up 0.13%, signaling relative stability within the banking and financial sector, even as other segments showed signs of fatigue.

Mid-Cap and Value Stocks Face Selling Pressure

Mid-cap equities underperformed during the early session, with the Tel Aviv 90 index declining 0.25% to 3,800.50 points. Forty-eight stocks fell compared to twenty-six advancers, reflecting growing caution among investors toward higher-volatility names. Trading volumes were relatively light at around NIS 25.7 million, reinforcing the view that market participants are hesitant to add exposure in this segment.

Value-focused indices also struggled to gain traction. The Tel Aviv 125 Value index slipped 0.08%, while the sector-balanced index declined 0.06%. These moves suggest that investors are reassessing valuation-sensitive positions amid uncertainty surrounding global growth trends, interest rate expectations, and currency dynamics. The lack of strong directional momentum points to a market that is increasingly discriminating in capital allocation.

Bond Markets Signal Defensive Positioning

Fixed income markets opened the session with limited movement, underscoring a defensive stance among investors. The All-Bond General Index edged down 0.01%, while inflation-linked bond indices declined around 0.02%. Short-term bonds were an exception, rising 0.05%, indicating continued demand for lower-duration instruments.

Bond market turnover totaled approximately NIS 160.6 million, reflecting steady participation without signs of stress or forced selling. The large number of unchanged bond securities highlights a market environment characterized by stability and caution, as investors await clearer signals from global central banks and macroeconomic data.

Outlook: What to Watch as Trading Continues

As the December 22 session unfolds, attention will remain focused on whether early large-cap strength can broaden across the market or whether pressure on mid-cap and value stocks intensifies. Developments in overseas markets, particularly U.S. equity futures and European trading sessions, may influence sentiment later in the day.

Key risks include further deterioration in market breadth, shifts in bond yields, and volatility driven by macroeconomic headlines. At the same time, opportunities may emerge in defensive sectors and companies with strong balance sheets and earnings visibility. Overall, the Tel Aviv market appears to be in a consolidation phase, reflecting cautious optimism tempered by disciplined risk management as investors position toward year-end.