Tel Aviv Stock Exchange Sees Record Trading Volume Amid Index Rebalancing

The Tel Aviv Stock Exchange experienced an exceptionally high trading volume of approximately 19.4 billion shekels on Thursday, driven by the rebalancing of its leading indices. This figure represents the second-highest daily trading volume in the past decade, significantly exceeding the average daily volume of around 4.7 billion shekels. The closing auction alone saw a volume of about 14 billion shekels, also the second-highest in ten years.

The surge in activity reflects adjustments to the composition and weighting of stocks within the indices, as well as increased assets in passive investment products. As of the end of October, roughly 84 billion shekels are invested in products tracking the TA-35, TA-90, and TA-125 indices.

Following the rebalancing, which took effect at the close of trading, El Al and Doral are joining the TA-35 index, while Demry, Shufersal, and Canon are moving to the TA-90 index. The TA-35 index returns to its standard 35 stocks after a temporary expansion to 36 with the inclusion of Palo Alto in August. New companies listed this year, including Tidhar, Avisarur, and Bagira, are also being added to the TA-90 index as part of the indices' renewal.

Despite the record trading volume, the major indices saw significant declines: the TA-35 dropped by 3.69%, the TA-90 by 2.23%, and the TA-125 by 3.38%. This downturn is attributed to sharp drops in chip stocks on Wall Street. Notable stocks with high trading volumes included Teva (approx. 2 billion shekels), Palo Alto (approx. 1 billion shekels), El Al (approx. 745 million shekels), Tower (approx. 722 million shekels), and Doral Energy (approx. 560 million shekels). El Al and Doral showed relative stability due to demand from tracking products, while Palo Alto declined amid broader market drops.