TA 35 Adds 0.55% as Israeli Equities Close Higher

Israel's benchmark stock index closed higher on Thursday, 29 May 2026. The TA 35 index rose 55 basis points to settle at 1,920.45. The Tel Aviv Stock Exchange reported the gain in data aggregated by Investing.com. The advance marked the index's fourth positive session out of the past five, bringing its weekly gain to 1.8%.

Context — [why this matters now]

The recent uptrend in Israeli equities follows a period of relative underperformance against other developed markets in the region. From mid-April to mid-May 2026, the TA 35 traded in a tight 2.5% range as geopolitical headlines dominated investor sentiment. The current move higher coincides with a tangible lull in cross-border military engagements and a renewed focus on domestic economic indicators.

The key catalyst for the renewed risk-on sentiment appears to be the latest gross domestic product data. Israel's Central Bureau of Statistics reported first-quarter annualized GDP growth of 3.1% on 27 May, surpassing analyst consensus estimates of 2.7%. This stronger-than-expected economic expansion has eased immediate concerns about a domestic slowdown overshadowing corporate earnings.

Internationally, the macro backdrop provided a supportive tailwind. Major global indices, including the S&P 500 and Germany's DAX, posted modest gains in the same session. Concurrently, the U.S. 10-year Treasury yield held steady at 4.28%, providing a stable anchor for global equity valuations. This environment allowed local factors to drive Israeli market performance.

Data — [what the numbers show]

The TA 35's 0.55% gain equated to a price increase of 10.52 points, lifting the index to 1,920.45. Trading volume was strong, with over 1.2 billion NIS worth of shares changing hands on the TASE. The index's performance diverged from its regional peer, the EGX 30 in Egypt, which closed flat for the session.

Metric	28 May Close	29 May Close	Change
TA 35 Index	1,909.93	1,920.45	+0.55%
TA 90 Index (Broad)	1,650.12	1,658.40	+0.50%
TA-Bank Index	1,452.31	1,460.18	+0.54%

The technology-heavy TA-Technology Index underperformed the main benchmark, adding only 0.35%. This contrasted with the TA-Finance Index, which led major sector groups with a 0.62% advance. Year-to-date, the TA 35 has returned 4.2%, trailing the S&P 500's 8.5% gain over the same period.

Analysis — [what it means for markets / sectors / tickers]

The session's leadership from financial stocks suggests investors are betting on a strengthening domestic economy. Banks like Bank Leumi (LUMI.TA) and Bank Hapoalim (POLI.TA) benefit directly from higher GDP growth, which improves credit quality and loan demand. The TA-Bank Index's 0.54% rise slightly lagged the broader finance sector, indicating strength in insurers and investment firms as well.

Technology's relative weakness points to a sector rotation within the Israeli market. While global tech remains a growth engine, local tech firms are more exposed to export markets and foreign currency volatility. A stable shekel against the dollar limited the typical tailwind for exporters, capping gains in names like NICE Ltd (NICE.TA) and Check Point Software (CHKP).

A key counter-argument to the bullish interpretation is that market breadth was narrow. Only 22 of the 35 index constituents closed in the green. The advance was largely driven by heavyweight financials and telecom stocks like Bezeq (BEZQ.TA), which rose 1.1%. Flow data indicated domestic institutional buyers were net purchasers of equity ETFs, while foreign flows were neutral.

Outlook — [what to watch next]

Investors will scrutinize the Bank of Israel's interest rate decision scheduled for 9 June 2026. Consensus expects the central bank to hold its key rate at 4.25%. Any signal of a dovish pivot could provide further fuel for the equity rally, particularly for rate-sensitive real estate stocks.

The TA 35 faces immediate technical resistance at the 1,935 level, its year-to-date high set in early March. A decisive breakout above this level on strong volume would signal a potential extension of the uptrend. Support rests at the 50-day moving average, currently at 1,895.

Upcoming earnings from major constituents will provide fundamental validation. Teva Pharmaceutical (TEVA.TA), a top-five index component, is set to report quarterly results on 12 June. Its performance is a crucial bellwether for the healthcare sector and overall corporate profitability in Israel.

Frequently Asked Questions

What does the TA 35 index represent?

The TA 35 is the flagship index of the Tel Aviv Stock Exchange, comprising the 35 largest and most liquid public companies in Israel. It is a market-capitalization-weighted index, similar to the S&P 500, and serves as the primary benchmark for Israeli equity performance. Sectors like banking, technology, and chemicals typically have significant representation, making the index a proxy for the nation's corporate economy.

How does Israel's stock market performance compare to its regional peers?

Over the past year, Israeli equities have shown lower volatility but also lower returns compared to some Gulf Cooperation Council markets. For instance, Saudi Arabia's Tadawul All Share Index is up 12% year-to-date, significantly outperforming the TA 35's 4.2%. This divergence reflects Israel's status as a developed market with different sector exposures and geopolitical risk premiums than its oil-exporting neighbors.

What are the main risks for investors in Israeli stocks?

The primary risks remain geopolitical instability and potential escalation of regional conflicts, which can trigger rapid capital flight. Secondary risks include shekel volatility, as a strong currency can hurt the competitive edge of export-driven tech and industrial firms. Domestic political uncertainty regarding fiscal policy and regulatory changes also presents a persistent, if lower-probability, headwind for certain sectors.

Bottom Line

The TA 35's gain reflects a tactical shift toward domestic economic optimism, though sustained momentum requires a breakout above key resistance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.