Tel Aviv Stock Exchange Outperforms Global Markets in Strong Year

The Tel Aviv Stock Exchange (TASE) concluded a remarkably strong year, with its leading indices significantly outperforming major Western markets like Wall Street and Europe. The rally, which began in June 2025 alongside Operation "With All the Lions," was further boosted by a notable decrease in inflation, contributing to exceptional returns.

The flagship TA-35 index surged approximately 37% over the year, while the TA-125 index rose by over 30%. In comparison, the Nasdaq in the US climbed around 20%, the S&P 500 gained about 17%, the UK's FTSE rose 15%, Germany's DAX increased 7%, and France's CAC 40 saw a 6% rise.

Only Japan's Nikkei index surpassed the TASE, jumping nearly 50%, likely driven by global demand for artificial intelligence infrastructure, which boosted Japanese technology and chip stocks. Other Asian markets like South Korea and Taiwan also experienced sharp gains, though comparisons are complicated by the significant weight of a few major companies in their indices.

Sector-wise performance on the TASE showed significant variation. The insurance index delivered an outstanding return of over 70%, making it one of the year's top performers. The energy index followed with a 66% increase, and the green energy-focused TASE Cleantech index rose about 52%.

Conversely, the defense index, launched at the start of winter, disappointed investors. Despite an initial surge, particularly after the outbreak of the "Roar of the Lion" war, it has since fallen below its initial trading level. Real estate and construction stocks also struggled, remaining largely flat for the year despite recent interest rate cuts by the Bank of Israel.