Tel Aviv Stock Exchange Expects 18 Billion Shekel Volume for Index Update
The Tel Aviv Stock Exchange expects a trading volume of 18 billion shekels on November 5 due to index rebalancing. El Al and Doral Energy will join the TA-35, while Shufersal and Damri move to the TA-90.
The Tel Aviv Stock Exchange is bracing for a record-breaking trading session, with daily volume projected to reach approximately 18 billion shekels on Thursday, November 5. This figure represents nearly a fourfold increase over the average daily trading volume recorded since the beginning of 2026, which stands at roughly 4.7 billion shekels.
The surge in market activity is driven by the semi-annual index rebalancing, scheduled to take effect at the close of trading. Passive funds, exchange-traded funds, and index-tracking products are required to adjust their portfolios to align with the newly updated composition of the market indices.
Key Index Changes and Rebalancing Mechanics
The index update involves additions, removals, and weight adjustments across leading benchmarks. El Al Israel Airlines and Doral Energy are slated to join the flagship TA-35 index, while Damri, Shufersal, and Kenon Holdings will transition to the TA-90 index. Following these adjustments, the TA-35 index will return to its standard composition of 35 stocks, having temporarily expanded to 36 following the fast-track inclusion of Palo Alto Networks in August 2026.
A significant portion of this trading volume is expected to concentrate during the closing auction, where passive funds execute mandatory portfolio adjustments. The massive scale of assets tracking the exchange's indices underpins this activity: as of October 26, approximately 18.3 billion shekels track the TA-35, 17.8 billion shekels track the TA-90, and 47.9 billion shekels track the broader TA-125 index. Total assets tracking TASE indices amount to roughly 103 billion shekels.
Historical Comparisons and Market Impact
Past rebalancing events illustrate the potential magnitude of these sessions. During the previous update in May 2026, total equity trading volume reached approximately 24.5 billion shekels, with 19.1 billion shekels executed during the closing auction alone. In comparison, the November 2025 rebalancing generated a trading volume of roughly 13.5 billion shekels.
Market analysts note that exceptionally high trading volumes do not necessarily indicate an influx of fresh capital into the stock exchange or a shift in fundamental investor sentiment. Much of the turnover stems purely from the technical necessity for tracking products to mirror the new index weightings. Furthermore, inclusion in a prominent index does not guarantee net buying demand, as simultaneous weight adjustments across multiple indices can produce varying outcomes.
The projected turnover of 18 billion shekels remains an estimate ahead of the update, and final trading figures will be determined by actual market activity at the close of the session.
