Foreign Holdings in Tel Aviv Stock Exchange Hit Record High

Foreign investors' holdings in Israeli securities reached an all-time high of approximately $154 billion by the end of June 2026, according to data released by the Bank of Israel. This represents a $9 billion increase from the previous quarter, a 6% rise, and a substantial $47 billion jump, or 43%, over the past year.

During the second quarter, foreign entities made net purchases of Israeli securities totaling around $2 billion. These acquisitions included stocks and mutual funds valued at approximately $2.7 billion, partially offset by bond sales of about $0.75 billion. The significant growth in the value of foreign holdings, exceeding net purchases, indicates that price appreciation and a stronger Israeli shekel also contributed to the increase.

The shift in the Israeli trading week to Monday-Friday, aligning with international markets, has been credited with boosting trading volumes and foreign investor participation. Average trading volume on Fridays surged to approximately 4 billion shekels, a 150% increase compared to previous Sundays. Consequently, foreign investors' share in trading activity rose from about 13% on Sundays to approximately 40% on Fridays.

This adjustment in the trading schedule has enhanced the Tel Aviv Stock Exchange's accessibility to global investors, supporting the trend of sustained foreign interest and demand for Israeli stocks. The data analysis was conducted by Nisan Avraham, a macro analyst at the Stock Exchange's research unit.