Tel Aviv stocks recovered on August 18 following the sharp equity selloff in the previous session. The rebound was led by mid-cap, banking and value-oriented shares, with market breadth turning decisively positive across the major equity benchmarks. However, the fixed-income market moved in the opposite direction, highlighting a more selective recovery across Israeli financial markets.

TA-90 Leads Broad Equity Rebound

The TA-90 Index delivered the strongest gain among the major equity benchmarks, rising 1.48% to 3,622.28 points. Market breadth improved substantially, with 62 securities advancing, compared with 25 decliners and three unchanged securities.

The TA-90 and Banks Index gained 1.61% to 3,876.61 points, outperforming the broader market. Sixty-seven securities advanced, while 25 declined and three were unchanged. The strong rebound suggests that banking and mid-cap shares attracted renewed buying interest after experiencing some of the steepest losses during the previous session.

The TA-125 Index also recovered, gaining 0.36% to 4,040.87 points. Eighty-nine securities advanced against 33 decliners and four unchanged securities.

Value and Sector Shares Strengthen

The TA-125 Value Index rose 1.48% to 4,059.49 points, matching the gain in the TA-90 and demonstrating strong demand for value-oriented shares. Forty-five securities advanced, while only 11 declined.

The Tel Aviv Sector-Balance Index gained 0.89% to 4,564.95 points. Seventy-three securities advanced compared with 25 decliners and two unchanged securities.

The TA-35 Index posted a much more modest recovery, rising just 0.04% to 4,176.34 points. Nevertheless, market breadth within the large-cap benchmark was strongly positive, with 27 securities advancing, eight declining and one unchanged.

The difference in performance between the TA-35 and the TA-90 highlights the stronger rebound in mid-cap and value-oriented segments.

Bond Market Moves in the Opposite Direction

The fixed-income market weakened despite the equity rebound.

The All-Bond General Index declined 0.07% to 432.09 points. Market breadth was negative, with 190 securities advancing compared with 364 decliners and 61 unchanged.

The Tel Bond-Adjoined A Index also fell 0.07% to 438.31 points, with 19 advancing securities, 57 decliners and three unchanged.

The Tel Bond 60 Adjacent Index recorded the sharpest decline among the listed bond indexes, falling 0.10% to 427.79 points. Only four securities advanced, compared with 54 decliners and two unchanged.

The Short-Term Bond Index, however, gained 0.01% to 477.88 points, supported by 58 advancing securities against 27 decliners and 50 unchanged.

Trading Activity and Market Outlook

Trading activity remained significant, with stock-market turnover reaching approximately NIS 3.46 billion. Bond-market turnover was higher at approximately NIS 4.57 billion, indicating substantial activity in fixed income despite the modest declines across several bond benchmarks.

The August 18 rebound provides an important test of whether the previous session’s sharp equity decline was a temporary correction or the start of a more sustained period of volatility. Investors will likely monitor whether the TA-90, banking shares and value stocks can maintain their recovery while the TA-35 stabilizes. Continued weakness in bonds could remain a risk, while improving equity breadth and stronger participation across mid-cap shares could provide an opportunity for further recovery if buying momentum persists.