Israeli Stock Market Soars in Strong Year, But Major Disparities Emerge

The Israeli stock market experienced a highly successful year, with the TA-35 index surging 41.5% and the TA-125 index climbing 36% during the Hebrew year 5776 (roughly September 2025 to September 2026). These gains positioned the Tel Aviv Stock Exchange as one of the world's top performers, surpassed only by South Korea. However, this overall success masked significant disparities, with some companies experiencing dramatic losses.

Among the biggest losers was Tikun Olam Cannatech, which plummeted 95.3% due to declining cannabis operations and a shift from growth promises to survival struggles. The company reported drastically reduced revenues and significant losses, leading to a creditor arrangement that included selling its cannabis business and stock shell. Alaroom followed, dropping 89.3%, after its subsidiary was investigated by the FBI for alleged unauthorized use of users' computers for a proxy network, leading to asset seizures and operational suspensions.

Can-Fite BioPharma completed the list of major decliners, falling 88.5%. As a biopharmaceutical company without a significant commercial product, its value is tied to clinical trial results and fundraising. Despite ongoing trials for various diseases, investor confidence waned, and the company faced cash flow challenges.

On the winning side, technology, industry, and energy stocks led the gains. Trackynet Power topped the market with a 652.7% increase, followed by Oron Group (274.2%) and Bazan Oil Refineries (245.7%). Within the TA-125 index, Doral Energy led with a 237.1% rise, alongside IEL (226.4%) and Bazan (196.6%). These surges reflect a market recovery and investor preference for companies exposed to energy, defense, and infrastructure.

Despite the overall strong performance, the year highlighted a stark contrast between booming stocks and those that lost nearly all their value. While many investors saw significant returns, others faced substantial losses, making it a year of mixed fortunes on the Israeli stock exchange.