TASE 35 Climbs 1.32% as Tower Semiconductor Surges

The Tel Aviv 35 Index rose 1.32% to close at 4,246.84 points. This marked the strongest single-day gain among major Israeli benchmarks. The Tel Aviv 125 Index followed with a 1.04% increase to 4,125.35 points. The BlueTech Global Index climbed 0.58% to finish at 617.28 points. Bond markets remained flat, with the TelBond 60 index holding steady at 429.51 points. Total equity turnover reached NIS 3.31 billion. Bond trading volume totaled NIS 5.69 billion.

Tower Semiconductor led the market with a 5.68% gain. This was the largest percentage increase within the Tel Aviv 35 basket. The company’s shares outperformed the broader index significantly. Next Vision also posted a strong result, rising 4.94%. Enlight Renewable Energy added 3.15% to its value. These tech-focused stocks drove the upward momentum in the Technology Index, which rose 1.08%. The Biomed sector also contributed to the rally, gaining 0.75%.

Banking stocks drive index gains

The financial sector contributed heavily to the day’s performance. Mizrahi Tefahot Bank recorded the highest gain among major banks at 2.04%. Israel Discount Bank rose 1.36% during the session. Bank Hapoalim climbed 0.90% to close the trading day. Bank Leumi increased by 0.63%. These consistent gains across the banking group supported the overall index movement. The sector's performance helped offset any softness in other areas.

Other notable movers included Strauss Group, which rose 2.37%. Nice Systems added 2.22% to its share price. Delek Group finished the day up 0.93%. Elbit Systems saw a modest increase of 1.33%. These companies formed a broad base of support for the Tel Aviv 35. The rally was not limited to a single industry but spread across tech, finance, and consumer sectors. This breadth indicated strong investor confidence in the local market.

Shekel weakens against major currencies

The Israeli shekel lost value against the US dollar on Wednesday. The representative exchange rate was set at NIS 3.033 per dollar. This represented a 0.525% decline from Tuesday’s closing level. The shekel also weakened against the euro. The representative rate for the euro stood at NIS 3.499. This marked a 0.5% drop in value for the shekel. Currency movements often reflect broader global economic shifts and local capital flows.

Market activity reflects sector rotation

Data from GN auto markets/indices shows a clear preference for growth-oriented stocks. The Technology and Biomed indices outperformed their peers significantly. Investors rotated capital into sectors with higher potential returns. This pattern was evident in the outperformance of Tower Semiconductor and Nice. The flat bond market suggested a lack of demand for fixed-income assets. Traders favored equity risk over the safety of corporate bonds. This dynamic contributed to the overall strength of the equity indices.