The Tel Aviv Stock Exchange hit record highs this week, with the TA-125 Index (TASE) climbing 1.8% on the heels of coordinated US-Israeli airstrikes on Iranian nuclear sites. That move pushed the benchmark index’s weekly gain to nearly 8%, as investors grew more confident about regional security and the outlook for Israeli equities.
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Financial, insurance, defense, and technology stocks led the rally. Major banks like Bank Leumi (IL:LUMI), Bank Hapoalim (IL:POLI), and Mizrahi Tefahot (IL:ILMZTF) saw strong inflows. Defense and tech were another bright spot. Shares of Elbit Systems (ESLT), a key Israeli defense contractor, gained on optimism around elevated demand and geopolitical positioning. NICE Ltd.(NICE), a tech heavyweight in the index, was also among the top performers, reflecting confidence in the broader high-tech sector.
In real estate and construction, stocks like Shikun & Binui surged nearly 10% as infrastructure and development bets picked up. NextVision (IL:NXSN), which specializes in defense imaging and drone tech, also stood out, benefiting from investor demand in security-linked growth sectors.
Markets Look Past Missiles
The rally comes despite direct missile strikes on Tel Aviv and even reported damage to the exchange building itself. Investors are brushing aside the immediate risks, focusing instead on expectations that the conflict could be short and strategically decisive. The U.S. airstrikes on facilities in Fordow, Natanz, and Isfahan are being viewed as a turning point, with markets pricing in a reduction in Iran’s military and nuclear capabilities.
There’s also growing speculation about potential diplomatic progress. Reports suggest renewed hostage negotiations and a potential Saudi normalization deal, both of which are seen as catalysts for economic growth and increased foreign investment. While geopolitical risks remain elevated, the current market mood reflects a bet on resilience and recovery. The strong performance of the TA-35 and Tel Aviv 90 Indexes supports the view that large-cap and mid-cap names are drawing both institutional and retail interest.
With the shekel – the Israeli currency – gaining strength, bond yields falling, and foreign capital holding steady, the Israeli market is navigating this conflict with surprising momentum. Investors appear to be pricing in not just stability, but the potential for a meaningful rebound.
Using Tipranks’ Comparison Tool, we’ve assembled and compared some of the tickers mentioned in the piece to gain a broader look on the Israeli TA-125 and some of its leading companies.
