Tel Aviv Stock Exchange Sees Trading Surge After Shifting to Friday Close

A new study by the Israel Securities Authority (ISA) indicates that changing the Tel Aviv Stock Exchange's (TASE) trading days has significantly boosted trading volumes, improved liquidity, and led to a surge in foreign investor activity. The research found that the average trading volume on Fridays is now double that of Sundays prior to the reform, despite Friday being a shorter trading day.

The reform, implemented on January 5, 2026, shifted the TASE's trading week from Sunday-Thursday to Monday-Friday, aligning it with major global exchanges. The ISA study, conducted by Chief Economist Prof. Miriam Schwartz-Ziv and her deputy Guy Sabach, compared the six months before and the first six months after the change.

Before the shift, the average daily trading volume on Sundays was NIS 1.3 billion. After the change, the average volume on Fridays reached NIS 2.6 billion, a 100% increase. Average volumes on Mondays through Thursdays rose by 43.3%, from NIS 3 billion to NIS 4.3 billion. After accounting for a general market uptrend in the first half of 2026, the researchers estimate that replacing Sunday with Friday increased the trading volume on the swapped day by 57%.

This increase is notable given the shorter trading hours on Fridays, which close at 1:50 PM compared to 3:50 PM on Sundays and 5:25 PM on Mondays-Thursdays. Additionally, the Tel Aviv market closes before US exchanges open, eliminating overlap.

The most dramatic impact was seen in foreign investor activity. Their share of trading volume on Sundays before the reform was 15.3%. By Friday, this share climbed to 38.2%, a 2.5-fold increase. Their share on Mondays through Thursdays remained stable at around 36%-37%. Overall, foreign investors' weekly share of trading volume rose from 34.2% to 36.8%.

The study also points to improvements in trading quality, such as an increase in "turnover velocity" (daily trading volume relative to market cap) by 58% between Sundays and Fridays, and a 39% increase after adjusting for general market trends. The bid-ask spread narrowed by 11%, making it easier to trade smaller stocks with lower costs.