Foreign Holdings in Israeli Stock Exchange Hit Record $154 Billion
Foreign investors' holdings in the Tel Aviv Stock Exchange reached a new record of approximately $154 billion by the end of June 2026. This represents an increase of about $9 billion over the previous quarter. The rise in value is attributed not only to new capital inflows but also to increases in the prices of Israeli securities and a strengthening Israeli shekel against the dollar, both of which boosted the dollar value of foreign-held assets.
Overall, Israel's total liabilities to abroad, including direct and portfolio investments, grew by $39 billion in the second quarter to reach about $697 billion. Foreigners made net purchases of securities on the Tel Aviv exchange totaling around $2 billion during the quarter. They bought stocks and mutual funds worth a net $2.7 billion while selling bonds worth about $750 million. This indicates that only a portion of the $9 billion increase in holdings came from new money, with the rest explained by price changes and exchange rates.
The data highlights continued net buying by foreign investors, particularly in the stock market, following a strong year for the local stock exchange and increased trading volumes. The Tel Aviv Stock Exchange itself saw an 81% profit jump in the second quarter, partly due to higher trading activity. Compared to the end of 2025, when foreign holdings stood at $113 billion, the value has surged by approximately $41 billion in six months due to a combination of investments, market gains, and currency fluctuations.
A significant structural change this year was the shift of the trading week from Sunday-Thursday to Monday-Friday, implemented in early January 2026 to align with international markets. Initial data shows increased activity on Fridays, with average daily trading volumes reaching about 4.6 billion shekels, compared to 1.6 billion shekels on Sundays in 2025. Foreign investors accounted for about 41% of Friday's trading volume, versus 12.5% on Sundays last year. While other factors influence foreign investment, the move to a Friday trading day has removed a significant operational barrier.
Conversely, Israelis also increased their foreign asset holdings, with the value of assets held abroad growing by $92 billion in the second quarter to $1.013 trillion. Of this increase, about $68 billion came from foreign securities portfolios, driven by $51 billion in rising foreign security prices and $17 billion in new net investments by Israelis abroad, with Israeli banks accounting for about $10 billion of these new investments.
