The Tel Aviv Stock Exchange (TASE) has come to the end of another strong year in the Jewish calendar, with returns placing it ahead of most stock exchanges around the world despite geopolitical and security challenges, headed by the war with Iran.
In the Jewish year 5786, which in the TASE’s analysis is the period September 25, 2025 to September 4, 2026, the Tel Aviv 35 Index rose by 40.5%, the Tel Aviv 125 Index rose by 37%, and the Tel Aviv 90 Index rose by 25.5%. In New York, the S&P 500 Index and the Dow Jones Index rose by 16% over the same period, while the Nasdaq rose by 18%. In Europe, the STOXX Europe 600 Index rose by 17%, and the MSCI World Index, which tracks the developed countries, rose by 16.5%.
The TASE says in its report for the year: "The rises on the market were accompanied by substantial expansion of activity and investor participation. The average daily turnover in equities, on the exchange and off-floor, was NIS 4.9 billion, which compares with NIS 3.1 billion in the previous Hebrew year, and the proportion of trading accounted for by foreign residents rose to 31%."
The TASE mentions the positive impact of the switch to Monday to Friday trading, which was made at the beginning of 2026. "In particular, the gap stands out between the average turnover on Sundays before the change, which was NIS 1.6 billion in 2025, and the average turnover on Fridays, which was NIS 4 billion, some 150% higher. The proportion of trading accounted for by foreign residents rose from just 13% on Sundays to 40% on Fridays."
Insurance stocks again stand out
As in the previous Hebrew year, the undisputed star of the TASE is the Insurance Index, which rose 94.5%, a rise that the TASE attributes to the fall in interest rates, a rise in profitability, and growth in the companies’ investment portfolios.
This is followed by the Cleantech Index, which rose 77% over the year, helped by the shock to energy supplies in the Middle East, which led to a steep rise in the price of oil. This volatility boosted investors’ interest in renewable energy, which is not exposed to the security risks of maritime transport.
The Bank Index was again among the leading sector indices, with a rise of 27%, although its performance was weaker than in the previous Hebrew year, when it rose by 68%.
The Real Estate Index and the Construction Index were among the weaker performers, with rises of 20.4% and 17% respectively.
The leading stocks
Of the five stocks on the Tel Aviv 125 Index with the highest returns for 5786, four belong to the energy and infrastructure sectors. Doral Energy topped the list, with a rise of 272%, followed by Mega Or (222%), Ayalon Insurance (211%), Bazan (202%), and IES Holdings (181%). Immediately after IES comes Tower Semiconductor, with a rise of 178%.
On the negative side, the star of the previous Hebrew year, military electronic systems company Aryt Industries, which soared by more than 850% that year, led the decliners in 5786, falling by 50.5%. Only in the past month it has fallen by 30%, after announcing that it was working to distribute an exceptionally large dividend of NIS 530 million, even though it reported a weak quarter, with double-digit declines in revenue and profit.
Electra Real estate fell by 49.2% over the year, Nice fell by 36%, Tamar Petroleum fell by 27.7%, and Gilat Satellite Systems fell by almost 20%.
Primary market heats up
According to TASE figures, 33 companies joined it in 5786. 26 made IPOs, up from 16 the previous year. Five became dual-listed, and two were spun-off from existing TASE-listed companies.
The largest flotation was that of construction company Tidhar, which raised NIS 1.72 billion at a post-money valuation of NIS 7.85 billion.
"The total value of stocks on the stock exchange rose from NIS 1.7 trillion at the beginning of 5786 to NIS 3.1 trillion, rising above NIS 3 trillion for the first time," the TASE states.
Among the major events this year that contributed to the rise in value was the dual-listing of cybersecurity giant Palo Alto Networks, which was listed for trading in Tel Aviv in February, and since then has risen 115%.
Israel’s debt market remains robust
Yields on government bonds in the US, Germany, France and the UK have risen recently to levels not seen in decades, amid large debt issues, geopolitical tensions, high oil prices that stoke fears of inflation, and expectations of interest rate rises. By comparison, the Israeli debt market has been impressively robust. The TelGov Shekel 10+ Index has risen by 8.0%; the TelGov Shekel 5+ Index has risen 7.4%, and the TelGov Shekel 5-10 Index has risen by 6.5%. CPI-linked bonds performed more moderately, with the TelGov CPI-Linked Index rising by 3.2%. The gap between the two instruments is in line with the falling rate of inflation and investors’ preference for shekel-denominated bonds in a period of falling interest rates and yields.
Published by Globes, Israel business news - en.globes.co.il - on September 10, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.