Tel Aviv Stock Exchange Outperforms Global Markets in Strong Year
Translated & summarized from Now 14 by baba
The Tel Aviv Stock Exchange experienced a highly successful year, with its main indices significantly outperforming those in the US and Europe. This strong performance was driven by a rally that began in mid-2025 and was supported by falling inflation, though the Nikkei index in Japan saw even higher gains.
The story in 6 lines · by baba
- Tel Aviv Stock Exchange indices outperformed Wall Street and Europe this past year.
- The TA-35 index rose 37% and TA-125 gained over 30% in the year ending September 2026.
- A rally starting in June 2025 and falling inflation fueled the market's rise.
- Japan's Nikkei index was the only major index to outperform the TASE.
- Insurance and energy sectors saw the highest returns on the TASE.
- The defense sector index underperformed after an initial surge.
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.
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