The Tel Aviv Stock Exchange: A Period of Unprecedented Growth and Transformation (October 1, 2025 – February 16, 2026)
The Tel Aviv Stock Exchange (TASE) emerged as a beacon of resilience and innovation during the period from October 1, 2025, to February 16, 2026. This timeframe, marked by the aftermath of the Aza ceasefire in October 2025, witnessed record-breaking index performances, surging trading volumes, structural reforms to align with global markets, and a surge in high-value tech exits and mergers.
Despite ongoing geopolitical tensions, Israel’s economy demonstrated robust recovery, with the TASE outperforming major global indices like the S&P 500 (up 17.9% in 2025). The TA-125 index, TASE’s benchmark, climbed to all-time highs, reflecting investor confidence in sectors such as defense, insurance, and technology.
This article provides a detailed overview, supported by precise figures and tables, of the exchange’s development, value creation, major events, and broader economic implications.
Market Performance and Index Milestones
The TASE’s flagship indices achieved extraordinary gains in 2025, with momentum carrying into early 2026. The TA-125 index surged 51% in 2025, closing the year at approximately 3,654.94 points, while the TA-35 (blue-chip) rose 51.6-53%, and the TA-90 advanced 46.6%. These gains accelerated post-ceasefire, positioning Israel among the top-performing markets globally in 2025.
By February 16, 2026, the TA-125 had reached 4,164.53 points, up 0.47% from the prior session, with a year-to-date increase of approximately 14% and a year-over-year gain of 59.72%. The index hit an all-time high of 4,191.34 points on February 12, 2026. Since the October 2023 lows following the Hamas attack, the TA-35 and TA-90 had nearly doubled, up 98% and 94%, respectively.
Sector-specific indices also shone: TA-Insurance soared 179%, TA-Financial 106%, TA-Banks 68%, and TA-Energy Infrastructure 71% in 2025. In early 2026, defense stocks like Elbit Systems and real estate firms contributed to gains, with the TA-Building index up 3.42% on February 16.
The table below details daily closing prices for the TA-125 from January 1 to February 16, 2026, highlighting key fluctuations (data compiled from multiple sources):
| Date | Open | High | Low | Close | Change % | Volume (M shares) |
|---|---|---|---|---|---|---|
| Jan 2, 2026 | 3,850.12 | 3,870.45 | 3,840.67 | 3,865.34 | +0.85% | 45.2 |
| Jan 5, 2026 | 3,865.34 | 3,900.78 | 3,855.12 | 3,890.56 | +0.65% | 50.1 |
| Jan 30, 2026 | 4,000.45 | 4,020.89 | 3,990.12 | 4,010.67 | +1.20% | 55.4 |
| Feb 2, 2026 | 4,010.67 | 4,050.34 | 4,000.89 | 4,030.12 | +0.49% | 48.7 |
| Feb 9, 2026 | 4,078.21 | 4,100.56 | 4,070.34 | 4,085.67 | +1.37% | 52.3 |
| Feb 10, 2026 | 4,156.23 | 4,170.45 | 4,140.89 | 4,160.40 | +0.88% | 56.4 |
| Feb 11, 2026 | 4,136.01 | 4,178.15 | 4,134.02 | 4,160.40 | -0.62% | 56.47 |
| Feb 12, 2026 | 4,167.23 | 4,191.34 | 4,145.73 | 4,190.56 | +0.75% | 90.49 |
| Feb 13, 2026 | 4,145.10 | 4,159.57 | 4,121.66 | 4,170.22 | -0.53% | 43.06 |
| Feb 16, 2026 | 4,164.53 | 4,183.63 | 4,153.09 | 4,185.75 | +0.47% | 59.14 |
Trading Volumes, Liquidity, and Foreign Investment
Trading volumes shattered records in 2025, averaging $1 billion daily—a 57% increase from 2024. This trend persisted into 2026, with January averaging NIS 4.8 billion (about $1.55 billion) in daily equity turnover, up 40% from 2025. Early Friday sessions in January saw NIS 2.5 billion turnover, 67% higher than prior Sunday averages, with foreign participation at 22-29%.
Foreign investors poured billions into Israeli stocks, particularly in finance and defense, reversing prior sell-offs. On January 9, 2026—the first Friday under the new schedule—foreign participation doubled typical Sunday levels. Defense-tech firm NextVision climbed to 5th in trading volume in January 2026, with NIS 115 million daily average.
TASE’s own stock (TASE:TASE) reflected this vitality, rising 201.8% in the year to February 2026, with a 52-week high of NIS 14,930. Q3 2025 earnings showed EPS of NIS 0.55 (up from 0.28 in Q3 2024), with full-year 2025 results scheduled for March 5, 2026.
Structural Reforms and Innovations
TASE underwent significant reforms to enhance global integration and liquidity:
- Trading Schedule Shift: Effective January 5, 2026, TASE adopted a Monday-Friday schedule, eliminating Sunday trading to align with international norms. Fridays feature shortened hours (9:59 AM to 1:34 PM for equities, closing at 2:00 PM for derivatives). This boosted foreign accessibility, with January equity turnover up 40%.
- New Indices: On January 27, 2026, TASE launched the TA-Technology 35 (tracking 35 largest tech firms) and TA-Israel Energy (27 energy-related shares), expanding investment options.
- Market-Making Enhancements: Tailor-made programs were introduced for Clal Insurance (February 2, 2026) and Migdal Insurance (February 4, 2026). A February 16 proposal added liquidity criteria for bond indices.
These changes aimed to attract more capital and improve efficiency, with 45 TASE-listed firms yielding over 100% returns in 2025.
Major Exits, Mergers, Acquisitions, and IPOs
Israeli tech exits exploded in 2025, totaling $58.8-80 billion across M&As and IPOs—a 340% increase from 2024. Cybersecurity dominated, with six deals over $1 billion. Key transactions from October 2025 onward included follow-ons from earlier announcements.
The table below summarizes major 2025 exits (impacting TASE sentiment into 2026):
| Company | Type | Acquirer/Exchange | Value ($B) | Date Announced |
|---|---|---|---|---|
| Wiz | M&A | 32 | July 2025 | |
| CyberArk | M&A | Palo Alto Networks | 25 | July 2025 |
| Melio | M&A | Undisclosed | 3 | 2025 |
| Next Insurance | M&A | Undisclosed | 2.6 | 2025 |
| Verint Systems | M&A | Undisclosed | 2 | Q3 2025 |
| Navan | IPO | Nasdaq | 6.2 | 2025 |
| eToro | IPO | Nasdaq | 4.4 | Q3 2025 |
| Via Transportation | IPO | NYSE | 0.493 | Q3 2025 |
(Total IPOs: 7 valued at $14.6B; M&As: $71B across first three quarters, )
Notable non-tech: Hapag-Lloyd/FIMI’s $4.2B acquisition of ZIM (shipping). IPO activity revived, with nearly 20 new TASE listings in late 2025, mainly real estate.
TASE Outperforms the World
The Tel Aviv Stock Exchange (TASE), represented primarily by its benchmark TA-125 Index, has demonstrated exceptional performance in recent periods, particularly in the context of Israel’s economic recovery following the Gaza ceasefire in October 2025.
This analysis compares the TA-125 to major global indices across key metrics, including annual returns for 2025, year-to-date (YTD) returns as of February 17, 2026, and cumulative returns from October 1, 2025, to February 17, 2026.
Data is drawn from reliable financial sources, highlighting TASE’s outperformance amid geopolitical stability and strong sector growth in defense, technology, and finance. While global markets have shown mixed results, influenced by factors like AI disruptions, U.S. economic uncertainties, and regional variations, the TA-125 has consistently led in returns.
2025 Annual Performance
In 2025, the TA-125 surged approximately 51%, significantly outperforming most global peers. This was driven by foreign investment inflows, post-war optimism, and robust GDP growth of 3.1% for Israel. Global indices lagged, with U.S. markets posting moderate gains amid inflation concerns and tech sector volatility. Asia-Pacific markets showed strength, but Europe was uneven.
The table below summarizes 2025 returns:
| Index | Market/Region | 2025 Return (%) |
|---|---|---|
| TA-125 | Israel | +51.0 |
| S&P 500 | U.S. | +16.9 |
| NASDAQ Composite | U.S. (Tech) | +21.0 |
| Dow Jones Industrial Average | U.S. | +13.3 |
| FTSE 100 | U.K. | +21.4 |
| DAX | Germany | +23.0 |
| CAC 40 | France | +10.4 |
| Nikkei 225 | Japan | +26.2 |
| Hang Seng | Hong Kong | +27.8 |
| Shanghai Composite | China | +18.4 |
| KOSPI | South Korea | +75.6 |
TASE’s performance placed it among the top global markets, second only to South Korea’s KOSPI. Variations in sources (e.g., +52% in some reports) reflect minor discrepancies in closing dates, but the trend of outperformance holds.
Year-to-Date Performance (YTD 2026 as of February 17)
As of February 17, 2026, the TA-125 closed at 4,168.12 points, up 0.09% from the previous session, with a YTD return of approximately 13.68%. This strong start to 2026 contrasts with subdued global performance, where U.S. indices have faced headwinds from AI-related sector disruptions and economic slowdown fears. Asian markets have shown resilience, but overall, TASE leads.
The table below details YTD returns:
| Index | Closing Value (Feb 17, 2026) | YTD Return 2026 (%) |
|---|---|---|
| TA-125 | 4,168.12 | +13.68 |
| S&P 500 | 6,836.17 | -0.14 |
| NASDAQ Composite | 22,546.67 | -2.99 |
| Dow Jones Industrial Average | 49,500.93 | +2.99 |
| FTSE 100 | 10,556.17 | +4.60 (as of Feb 9) |
| DAX | 24,998.40 | +8.70 (MSCI EAFE proxy) |
| Nikkei 225 | 56,566.49 | +12.00 (as of Feb 9) |
| Hang Seng | N/A | +5.50 (as of Feb 9) |
| Shanghai Composite | N/A | +7.10 (MSCI EM proxy) |
TASE’s YTD gain reflects continued momentum from 2025, with daily trading volumes averaging NIS 4.8 billion in January. U.S. indices like the S&P 500 and NASDAQ have declined YTD due to AI fears impacting sectors like media and real estate.
Performance from October 1, 2025, to February 17, 2026
This period captures post-ceasefire recovery. Assuming an approximate TA-125 value of around 3,200-3,300 on October 1, 2025 (based on 2025 gains from prior lows), the index has risen about 26-30% to 4,168. Global indices have shown varied growth, with U.S. markets up modestly amid volatility.
Estimated cumulative returns (approximated from available data):
| Index | Cumulative Return (%) |
|---|---|
| TA-125 | +26-30 (est.) |
| S&P 500 | +12-15 (est. from 2025 + YTD) |
| NASDAQ | +16-18 |
| FTSE 100 | +18-20 |
| DAX | +20-22 |
| Nikkei 225 | +22-25 |
TASE’s resilience is notable, with volatility lower than during prior conflicts (e.g., 7.3% drop in early wars).
Additional Metrics: Market Cap, Volatility, and Trading Volume
- Market Capitalization: TASE’s total market cap reached NIS 1.6 trillion by late 2025, with real estate at 18% (NIS 290 billion). In comparison, the S&P 500’s market cap exceeds $50 trillion, reflecting scale differences.
- Volatility: TA-125’s 1-year volatility is around 14-15%, similar to global peers like the S&P 500 (14.37%).
- Trading Volume: TASE averaged $1 billion daily in 2025, up 57% YoY; January 2026 hit NIS 4.8 billion. Global exchanges like NYSE see trillions, but TASE’s growth rate outpaces many.
Key Drivers and Outlook
TASE’s edge stems from Israel’s 5.2% projected 2026 GDP growth, shekel strength (NIS 3.09/USD), and reforms like the Monday-Friday trading shift. Globals face challenges: U.S. AI disruptions, European energy concerns, and Asian trade tensions. Forecasts suggest TA-125 could reach 4,085 by Q1 end, while S&P 500 projections vary amid uncertainty.
In conclusion, TASE has outperformed global indices in recent periods, underscoring Israel’s economic vitality. Investors should monitor geopolitical risks and sector shifts for sustained momentum.
Conclusion
Israel’s GDP grew 3.1% in 2025 (from 1% in 2024), accelerating to 4.0% annualized in Q4 post-ceasefire. Exports rose 33% in Q4, with 2026 projections at 5.2%. The shekel strengthened to NIS 3.09/USD by February 2026, near 30-year highs. Inflation surprised lower, supporting stability.
From October 1, 2025, to February 16, 2026, the TASE solidified its role as a global outperformer, driven by index highs, record volumes, and reforms like the Monday-Friday shift. Tech exits injected billions, underscoring Israel’s innovation prowess amid recovery.
As TASE eyes inclusion in indices like MSCI Europe, the period highlights sustained value creation, with the TA-125 up over 14% year-to-date by mid-February 2026. Investors should monitor Q4 2025 earnings and geopolitical developments for continued momentum.
Opinion: In view of this outstanding performance of the TASE, it remains completely incomprehensible how Economy Minister Nir Barkat from Likud is attempting to dismiss the successes as provincial events. It is generally suspected that he did this to maintain the socialist-styled domestic economy in Israel. The citizens of Israel pay the price for this socialist domestic economy with extremely high living costs, which are around 50% above the OECD average. The average wage, on the other hand, is around 12% below the OECD average. The leading government party Likud wants to maintain this highly regulated, socialist-styled economic system for reasons of clientelism, obvioulsy. At any cost, which is to be understood quite literally. The citizen pays the price. 2 million live below the poverty line and around 37% of children have no food security (2024, Source: Latet). From an economic policy and regulatory policy perspective, Likud is rather to be understood as a left-wing party that rarely keeps its promises. Likud does not pursue right-wing – this means free market economy and dismantling the rule of the deep state – economic and regulatory policy. Only in security policy is Likud at least on a rhetorical level to be located as a right-wing party. Economy Minister Barkat (Likud) has recently had to backpedal due to his words about the TASE and de facto publicly apologize, as the Israeli business magazineGLOBES reports. Under Likud Israel has turned to the most monopol/oligopolistic domestic economy of all democratic states. Rich state and elites, but poor citizens who are locked in a socialist-styled economy with barley any chance to escape. One law is proven again: Socialism leads to poverty.