Volumes peak on Tel Aviv Stock Exchange

Tension in Israel rises on almost every front, and leaves its mark on the stock exchange. The Israeli Defense Army resumed intensive operations in the Gaza Strip, and the shooting of missiles began on Israel again, while the government's attempts by Ronin Ron, the public prosecutor, on the political and legal plane, had led to the renewal of fermentation and political polarization in the country. The threats by business leaders and Histadrots to close the economy led to a 3 % decrease in the Tel Aviv index 35 on Sunday. In fact, even before the outbreak of the storm, life was interesting in the local stock market.

In recent weeks, in fact since the beginning of 2025, the Tel Aviv Stock Exchange has noticed a new trend: an unprecedented leap in trading sizes. Last Thursday, for example, the rotation rate was 3.6 billion New, or more than 50 % of the average daily rotation last year. The Stock Exchange estimates that its average daily rotation in March will exceed 2.5 billion New, after reaching 2.6 billion New in January and 2.8 billion New in February. For the first quarter as a whole, the daily average is 2.6 billion NIS, more than 20 % of the daily average of last year.

The leading sectors

Data from Tel Aviv shows that the largest jump in its rotation is in the insurance sector. Until the acute decreases at the beginning of this week, the sectoral indicator gave a return for 12 months to more than 70 %. Daily rotation rates in the shares of the insurance company increased to 125 million shekels last month, or nearly 60 % higher than the daily average in the previous twelve months.

The bank’s shares, which gave an impressive return of 60 % last year, witnessed 42 % in the average daily rotation, to 618 million NA last month. In Tel Aviv 35 Index Stocks, which increased more than 20 % last year, the average daily rotation of 1.5 billion New month, more than 37 % from last year (1.1 billion New).

Not only shares of financial services that attracted large quantities of trading. For the shares of the Tel Aviv Industries, which includes large companies such as TEVA and ICL, the average daily rotation of 617 million New last month, more than 39 % over last year. The average daily rotation in the Tel Aviv technology index stocks were 538 million checks, or more than 35 % from last year.

“The trading volume on the Tel Aviv Stock Exchange recently at a peak that I have not seen before,” says EVP at EVP in EVP and head of trading, indexes and derivatives. “Since the beginning of the year, 1.5 billion NIS flowed to the assets that follow the Tel Aviv index 125.” Pagot adds that there was a revival in the derivative market as well, and also in the smaller CAP shares in the second category (Tel Aviv 90) and the third (AVIV Sme 60).

Why is this happening? Pagot: “It is a mixture of investing in the local market in the past two years, due to the tremendous shift in funds to invest in the S& P 500 index funds in the market, and the positive performance of the local market in the past year. In recent months, investors seem to have wanted to diversify their portfolios with more ADS, and foreign investors have also returned, despite their lack of strength.

“The financial institutions, which run the public savings, which were also invested in the local market compared to their investments abroad, have sparked them.” The tension in Wall Street caused by President Trump's measures and fear of slowdown in the world's largest economy has led to a decrease in the main stock indicators there. The Nasdak Stock Exchange has decreased by 8 % so far this year, while the S&P 500 3.5 % lost. On the contrary, the AVIV 35, even after falling at the beginning of this week, it rises by 1 % for the year.

Will the direction continue?

Trading sizes in Tel Aviv at the highest historical level. The average daily rotation in shares was 1.4 billion NIS in the 2011-2022 period. In 2022, which was a difficult year for investors, with high interest rates and warfare in Ukraine, the average daily rotation was 2.3 billion New. He decreased to 2 billion NIS in 2023, and was affected by the struggle for the government's judicial reform program and the widespread war in Israel. Last year, when the security image became more clear, the average daily rotation has risen to 2.2 billion New, and in recent months the records have been broken.

“In 2023, we have seen a tremendous exit for investors, as financial institutions and foreign investors have transferred money away from the Israeli market. In recent months, especially after conducting the explosive process in Lebanon in September and the American elections in November, there was hope here at the end of the war,” says Rami Dror, CEO of Value Advanced Investments Group.

“The audience also felt a change in this trend. We started to return to the mind, and even ecstasy, after the elections in the United States. Today, we are after that peak, and we look forward, I do not think we will see the circulating folders continue to grow at the same rate. Fear of the return of the judicial reform program here, here gives investors

It is not just a policy

LIOR Alage, Director of Research Securities at Discount Bank, believes that the rise in volumes is caused by the good performance of the market following the improvement in the security situation. “When goodness in the market is good and high, the sizes grow naturally. Another reason, which is more important for the future, is the American market. The last events there, especially President Trump's identification policy towards the rest of the world, some investors have caused their money to change, mainly, it will mock European markets. It is difficult for us to be very optimistic in this regard.”

Will the current political drama in Israel affect trading volumes? The discount bank is cautiously estimated that the market has found a “excuse” to achieve profits: “The price levels that the market has reached are the price levels that call for sale. It is difficult to connect to politics after a day or two.

It was published by Globes, Israel Business News – En.globles.co.il – on March 25, 2025.

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