The Tel Aviv Stock Exchange (TASE) opened cautiously on Wednesday, November 12, 2025, with major indices posting small gains amid subdued trading activity. Investors appear to be treading carefully as they monitor inflation expectations, interest rate outlooks, and global equity signals. The cautious optimism reflects a wait-and-see sentiment ahead of key macroeconomic updates that could shape market direction in the coming weeks.

Equity Indices Show Slight Gains

The TA-35 index, which tracks Israel’s largest publicly traded companies, edged up 0.06% to 3,391.33 points, with a balance of 11 gainers and 9 decliners. The broader TA-125 rose 0.07% to 3,441.91 points, supported by moderate advances in the technology and industrial sectors.

The TA-90 index — comprising mid-cap companies — added 0.07% to reach 3,625.17 points, while the TA-Value 125 index rose 0.23%, highlighting continued interest in undervalued and defensive shares. However, the Banks & TA-90 composite dipped marginally by 0.02%, suggesting that the financial sector remains under pressure amid uncertainty regarding future monetary policy and lending activity.

Analysts noted that the market’s modest upward movement reflects selective buying, particularly in companies with exposure to export markets and AI-driven technologies. Still, with limited turnover, today’s trading session indicates that institutional investors are waiting for clearer signals before making large-scale portfolio adjustments.

Bond Market Steady Amid Monetary Caution

The fixed-income segment remained largely unchanged, with most bond indices showing negligible movement. The All-Bond General Index held steady at 418.22 points, while the Tel-Bond A and Tel-Bond 60 Linked indices also showed no change, indicating stable sentiment in the credit markets.

The Short-Term Bond Index stayed flat at 462.96 points, underscoring a cautious stance as investors assess inflation data and expectations for the Bank of Israel’s next rate decision. Yields remain stable across most maturities, signaling that traders do not anticipate immediate policy tightening. Nonetheless, uncertainty persists over the trajectory of rates in early 2026, particularly if global inflation pressures re-emerge or geopolitical risks affect commodity prices.

Market observers emphasize that Israeli bond markets have shown resilience despite external headwinds, supported by prudent fiscal management and strong investor confidence in government securities. However, the muted volumes today suggest limited new positioning until more clarity emerges on both domestic and international economic indicators.

Sector Performance and Investor Sentiment

Within the equity market, defensive sectors such as utilities, energy infrastructure, and healthcare showed modest strength, while technology shares traded mixed following a volatile session on Wall Street. The TA-Balance Sector Index rose 0.08% to 4,018.21 points, reflecting a diversified advance across multiple industries.

Investors remain focused on global developments — particularly the performance of U.S. and Asian markets, where renewed optimism over AI investment cycles and corporate earnings has provided support. Still, concerns linger over potential volatility linked to central bank decisions, currency fluctuations, and the trajectory of global interest rates.

Locally, corporate earnings season in Israel is nearing its end, with most companies reporting stable profitability despite higher financing costs and persistent input price pressures. Analysts note that the resilience of Israeli corporates — especially those in the export and technology sectors — continues to provide a stabilizing influence on the broader market.

Outlook: Key Trends to Watch

As trading continues, investors will be watching for upcoming inflation data, U.S. economic releases, and signals from the Bank of Israel regarding its policy stance. Any shift in global interest rate expectations or commodity prices could influence both equities and bond yields in the coming days.

The market’s near-term trajectory will likely depend on whether moderate optimism can be sustained in the face of subdued liquidity and macroeconomic uncertainty. While AI-related technology and defensive value stocks may continue to attract selective interest, a broader rally will require stronger global momentum and a clearer inflation outlook.

For now, Tel Aviv’s markets remain stable but cautious — reflecting a broader global mood of measured confidence as investors balance optimism over technological growth against persistent economic headwinds.