Tel Aviv Stock Exchange Outperforms Wall Street in Jewish Year 5786

The Tel Aviv Stock Exchange (TASE) concluded the Jewish year 5786 with significant gains, outperforming major global markets including Wall Street. Between September 25, 2025, and September 4, 2026, the TA-35 index surged by 40.5%, the TA-125 by 37%, and the TA-90 by 25.5%. In comparison, the S&P 500 rose 16%, the Dow Jones 16%, and the Nasdaq 18% over the same period. European markets also lagged, with the STOXX Europe 600 gaining 17% and the MSCI World index up 16.5%.

The impressive performance was accompanied by a notable increase in trading activity. Average daily turnover reached 4.9 billion shekels, up from 3.1 billion the previous year, with the share of foreign investors climbing to 31%. A key factor contributing to the growth was the TASE's shift to a Monday-to-Friday trading week at the start of 2026. This change saw average Sunday turnover of 1.6 billion shekels in 2025 jump to 4 billion shekels on Fridays after the schedule adjustment, a roughly 150% increase. Foreign investor participation on Fridays reached 40%, compared to 13% on Sundays.

The insurance sector led the gains, with its index soaring 94.5%, attributed by TASE to lower interest rates, increased profitability, and expanded investment portfolios. The "green" technology index climbed 77%, boosted by investor interest in renewable energy amid the Middle East energy crisis and rising oil prices, which highlighted the risks of maritime transport.

Other sectors also saw positive growth, though some lagged behind previous years. The banking index rose 27%, a decrease from its 68% gain the prior year, while the real estate index added 20.4% and construction 17%. Among individual companies, Doral Energy's shares jumped 272%, followed by Mega Or (222%) and Ayalon Insurance (211%). Conversely, Aryt Industries, which had surged over 850% the previous year, saw its shares fall 50.5% after announcing a record 530 million shekel dividend payout despite a weak quarter.

Thirty-three new companies listed on the TASE during the year, including 26 IPOs, an increase from 16 the previous year. The largest offering was by construction firm Tidhar, raising 1.72 billion shekels. The total market capitalization of TASE exceeded 3 trillion shekels for the first time, reaching 3.1 trillion from 1.7 trillion. Palo Alto Networks also listed in February, with its shares rising 115% since then. The government bond market remained stable, with key indices showing modest gains.