The Tel Aviv Stock Exchange (TASE) Index Committee has published the plan for bringing US cybersecurity giant Palto Alto Networks (Nasdaq: PANW; TASE: CYBR) onto the flagship Tel Aviv 35 Index on August 6. Palo Alto Networks, which began trading on the TASE in late February following the acquisition of CyberArk, was listed just one week after the then deadline for the joining the Tel Aviv 35 Index. Since the dual listing, it has already jumped by about 127% (in shekel terms), a jump that local indices have not benefitted from to date.
Palo Alto Networks, a global data security company founded in 2005 by Israeli entrepreneur Nir Zuk, is by far the biggest company on the TASE with a market cap of more than NIS 800 billion. This huge figure constitutes almost 25% of the value of the entire local stock market, and more than the combined value of Teva, Elbit and the major banks.
Given its size, Palo Alto Networks was supposed to receive the maximum possible weight for a single share in the index (7%). However, TASE’s regulations limit the aggregate weight of all stocks with ties to a foreign country (the US in this case) to only 8% of the index.
To resolve the impasse and allow its entry without exceeding the threshold, the index committee decided that Palo Alto will be limited to a weight ceiling of only 5% in the Tel Aviv-35 index. Ormat Technologies' stock, which is also a company with US ties, will suffer a "cut" in its weight ceiling, which will drop from 4% to 3%.
At the same time, the committee reformed and tightened the criteria for defining a "high-investment index" (an index that operates a graduated entry mechanism for new stocks to prevent excessive market volatility).
The list has been dramatically cut from 12 indices to just three, which manage trackable assets of at least NIS 10 billion: the TA-35, TA-90 and TA-125 indices. These structural changes are expected to lead to particularly active trading volumes and massive capital movements from similar funds and ETFs during the first trading week of August.
Published by Globes, Israel business news - en.globes.co.il - on July 2, 2026.
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