Tel Aviv Stock Exchange Wraps Up Record Year With Sharp Thursday Drops
The Tel Aviv Stock Exchange wrapped up a record-breaking year with sharp drops on Thursday, as the TA-35 surged 37% and outperformed major Western markets.
Trading on the Tel Aviv Stock Exchange closed sharply lower on Thursday, mirroring global market trends following the release of the U.S. producer price index and rising oil prices. This marked a sour end to an exceptionally strong year, during which the local exchange's flagship indices outperformed most major Western markets.
The upward trend actually began in June 2025, alongside a significant drop in inflation, which provided tailwinds to the market and led to extraordinary yields. The flagship TA-35 index surged by approximately 37% over the year, while the TA-125 index strengthened by more than 30%, yields significantly higher than most major Western indices.
International Comparisons
By comparison, in the United States, the Nasdaq index rose by about 20%, while the S&P 500 index climbed roughly 17%. Europe recorded more moderate yields: the British FTSE index rose by about 15%, the German DAX strengthened by about 7%, and the French CAC index settled for a modest increase of only about 6%.
Sector Performance
The insurance index delivered a dream yield of more than 70% this year, becoming one of the most prominent indices on the exchange. It was followed by the energy index with a 66% increase, while the TA Cleantech index took third place with a yield of about 52%.
Conversely, one of the indices that disappointed investors was the defense index, which was launched at the beginning of winter. The index initially surged, especially with the outbreak of the war, but subsequently lost ground and is currently trading below its initial level.
Real estate and construction stocks also struggled to post significant performance throughout the year, remaining around their beginning-of-the-year levels despite recent rate cuts by the Bank of Israel.
