Israeli Stocks Mixed as Banks Offset Gains; Electra Real Estate Surges

The Tel Aviv Stock Exchange (TASE) saw a mixed performance, with the TA-35 index closing flat around 4,221 points. Gains in the broader market were offset by declines in the banking and insurance sectors, which fell 0.3%. The TA-90 index, however, finished up 0.7%, and the TA-125 index saw a modest 0.2% increase. Trading volume approached NIS 2 billion in the All-Share index, among the highest recently. The market opened positively, turned slightly negative for large-cap stocks in the afternoon, and closed with a clear divergence: the "second tier" stocks were strong, while financial institutions weighed down the market.

Electra Real Estate experienced a significant surge of 9.7%, marking its first recovery after a prolonged decline of nearly 64% since July. This jump occurred on a day when the company's situation was a central focus, following its recent sharp fall. Meanwhile, Elbit Systems bucked the trend, extending its earlier losses to 3.2%. Other notable movers included Teva, which maintained a 1.2% gain, and Tower, adding 0.8%.

In other market news, AI company Anthropic is reportedly preparing for an IPO, with revenue run rate exceeding $100 billion annually and initial operating profit, though a significant accounting loss is projected for 2025. The IPO aims for a valuation exceeding $2 trillion. Africa Israel Residences announced a major move to split its income-generating properties, including Shefayim and Mount Scopus, into a new company to be distributed to shareholders and listed separately.

The US dollar continued its upward trend against the shekel, rising 1% to NIS 3.08, reflecting global dollar strength and widening interest rate differentials. In international markets, US stock futures were down, and Asian markets weakened, with oil prices climbing above $106 and bond yields reaching their highest levels since 2007. Analysts are closely watching whether these high yields will persist, potentially impacting stock market attractiveness.