The Tel Aviv Stock Exchange opened Monday’s session on a positive note, led by blue-chip gains in the TA-35 index. With markets now open, investors appear cautiously optimistic, driving early momentum across major indices while keeping a close eye on domestic rate policy and global market cues.

Large Caps Lead Early Gains

The TA-35 index advanced 0.36% to 3,300.15 points, signaling a modest but broad rally among Israel’s top-tier companies. Trading turnover reached approximately 190 million shekels in this index alone, indicating robust participation from institutional investors. Out of 35 listed firms, 21 traded higher while 14 declined, suggesting improving sentiment after a volatile previous week.

The TA-125 index also showed strength, up 0.25% to 3,371.67 points, with 68 gainers versus 51 decliners. The TA-125 Value sub-index gained 0.36%, reflecting investor rotation into value-oriented names as bond yields stabilized.

Mixed Performance in Mid- and Small-Cap Segments

Mid-cap and banking-related stocks presented a more mixed picture. The TA-90 slipped 0.14% to 3,614.97 points, even as trading turnover exceeded 36 million shekels. Within this group, 47 stocks rose, 37 fell, and 6 remained unchanged. However, the TA-90 Banks Index edged up 0.14%, supported by solid volume of 152 million shekels, showing steady appetite for financials despite global uncertainty in interest rate outlooks.

In the bond market, the All-Bond General Index was little changed at 418.95 points, with a marginal 0.01% uptick and turnover of nearly 24 million shekels. Short-term bonds (up to one year) gained 0.05%, reflecting ongoing investor demand for shorter-duration instruments amid a wait-and-see stance on inflation trends.

Market Breadth and Liquidity Signal Investor Confidence

Overall equity turnover stood at roughly 300 million shekels, underscoring solid liquidity and market confidence. The TA-Sector Balance Index, which represents a diversified cross-section of industries, rose 0.13% to 3,949.76 points, with 52 stocks advancing and 43 declining. This balanced performance points to healthy sector rotation rather than concentrated speculative activity.

Fixed income instruments were largely stable. The Tel-Bond 60 Inflation-Linked Index rose 0.01%, while the Tel-Bond Linked A Index slipped slightly by 0.01%. The bond market’s calm tone suggests investors are reassessing positioning ahead of potential policy announcements later this month.

Outlook: Monitoring Rates, Earnings, and Global Cues

As trading continues, investors are expected to monitor key corporate earnings and upcoming inflation data for direction. The combination of steady equity inflows and muted bond movements indicates a cautiously constructive sentiment in the Israeli market. Looking ahead, traders will watch for signals from the Bank of Israel and global central banks on rate adjustments, while geopolitical developments and U.S. market trends remain potential catalysts for short-term volatility.

The session’s solid opening suggests resilience in local equities, but sustained performance will depend on macroeconomic clarity and continued investor confidence through the week.