Israeli equities closed higher on Friday, August 7, extending the previous session’s gains as investors continued to add exposure across major market segments. The rally was supported by improving market breadth, with advances outnumbering declines across most key indexes, signaling stronger investor confidence heading into the weekend.

Although trading volumes moderated from the exceptionally high levels recorded in the previous session, both equity and bond markets finished firmly in positive territory.

Blue-Chip Stocks Lead the Market Higher

The TA-35 Index rose 0.98% to close at 4,168.97 points. Market participation improved, with 22 advancing constituents compared with 13 decliners, while one stock finished unchanged.

The broader TA-125 Index gained 0.82% to close at 4,065.60 points. Advancing stocks totaled 79 versus 45 decliners, with two securities unchanged, demonstrating that buying interest broadened across the market after several volatile sessions.

Stock market turnover reached approximately NIS 2.12 billion, lower than Thursday’s elevated trading activity but consistent with steady investor participation during a positive trading session.

The stronger market breadth suggests buying was distributed across a wider range of sectors rather than being concentrated solely in large-cap stocks.

Mid-Caps and Banking Shares Continue to Recover

Mid-cap stocks also finished higher, reinforcing the broader market rebound.

The TA-90 Index advanced 0.37% to 3,749.08 points. Market breadth remained favorable, with 57 advancing securities against 32 decliners and one unchanged stock.

The TA-90 and Banks Index gained 0.70% to close at 3,947.35 points. Advancers outnumbered decliners by 62 to 32, reflecting renewed strength in banking and financial shares.

The TA-125 Value Index rose 0.60% to finish at 4,069.25 points. Forty value-oriented stocks advanced while only 15 declined, indicating improved investor appetite for companies trading at attractive valuations.

The Tel Aviv Sector-Balance Index climbed 0.59% to 4,609.58 points. Market breadth remained constructive, with 63 advancing securities compared with 35 decliners, confirming that gains were spread across multiple industries.

The positive participation across large-cap, mid-cap, banking, and value indexes points to improving market sentiment following recent fluctuations.

Bond Market Maintains Steady Momentum

Israel’s fixed-income market continued to provide stability alongside the equity rally.

The All-Bond General Index rose 0.04% to close at 433.13 points. Bond market breadth remained exceptionally strong, with 518 advancing issues compared with just 45 decliners.

The Short-Term Bond Index added 0.02% to finish at 477.55 points, maintaining its gradual upward trend.

Corporate bonds also recorded gains. The Tel Bond-Adjoined A Index advanced 0.16% to 439.87 points, while the Tel Bond 60 Adjacent Index increased 0.07% to close at 429.51 points.

Bond market turnover totaled approximately NIS 1.10 billion, reflecting continued investor participation in Israel’s fixed-income market.

Market Outlook

Friday’s session extended the positive momentum established earlier in the week, with improving market breadth indicating that investor confidence has broadened beyond a handful of large-cap companies. While trading volumes normalized after Thursday’s surge, the continued gains across equities and bonds suggest market sentiment remains constructive. Investors will continue monitoring corporate earnings, domestic economic indicators, geopolitical developments, and global monetary policy expectations for further direction. Sustained participation across large-cap, mid-cap, and financial shares would strengthen the case for a more durable recovery in Israeli markets.