Israeli shares jumped more than 4 percent on Monday, pushing the main indexes to new all-time highs following the reported military operation against Iran over the weekend .
The Tel Aviv 35 Index, which tracks the largest companies listed on the exchange, rose 3.67 percent to close at 4,279.74 points. The broader Tel Aviv 125 Index gained 3.85 percent to finish at 4,231.79 points, according to data from the Tel Aviv Stock Exchange . One financial report showed the TA-35 index gaining as much as 4.61 percent by the close of trading .
Trading volumes were described as very high as investors reacted to events over the weekend . The market rally came as Asian markets saw declines and futures on Wall Street traded lower, marking the Israeli session as an outlier .
Insurance companies led the gains across the board. Shares of Clal Insurance, Harel Insurance, and Menorah Mivtachim each rose more than 9 percent during trading . Bank stocks and companies in the defense sector also saw strong demand .
The local currency strengthened alongside equities. The shekel traded 1.93 percent lower against the US dollar, meaning a sharper value for the Israeli currency, at 3.072 shekels to the dollar . It gained 2.76 percent against the euro, trading at 3.604 shekels per euro .
Monday’s rally extends a period of strong performance for Tel Aviv that began in 2024. The benchmark TA-35 index surged 51.6 percent in 2025 alone, outperforming major world indexes such as the US S&P 500, which gained 17.9 percent during the same period . Since the initial market drop following the October 2023 attack, the TA-35 has now risen 98 percent .
Analysts pointed to the return of foreign investors as a key driver of the recent gains. Data from the stock exchange showed foreign financial institutions held $19.2 billion in local stocks by late 2025, double the amount held before the war . Net stock purchases by overseas investors in 2025 totaled $2.3 billion .
The financial sector has been the main focus of this foreign money. About 70 percent of overseas holdings are in financial stocks, with 56 percent of that total concentrated in Israel’s five largest banks . The TA-Banks Index rose 60.9 percent in 2025, while the Insurance Index more than doubled, jumping 152.2 percent .
Government data released last month showed the economy grew 3.1 percent in 2025, rebounding from 1 percent growth in 2024 . The rebound was led by a 7.1 percent rise in investment and a 5.9 percent gain in exports . The Bank of Israel has projected growth of 5.2 percent for 2026 .
The Tel Aviv Stock Exchange switched to a Monday-to-Friday trading schedule in January of this year to align with global markets and attract more foreign investment . Trading ended at 2 p.m. local time on Monday out of respect for the Sabbath .