Last Thursday, when security tensions skyrocketed following threats from Iran, the Israeli capital market responded accordingly. The TA-35 index recorded a sharp decline of approximately 1.5% on a relatively high trading volume of 2 billion NIS, and market sentiment appeared to fluctuate in step with the security situation.
But when the stock market turns green and a wave of gains sweeps through Tel Aviv, one of the fundamental truths about the local capital market becomes clear: even during times of conflict, even when citizens are sheltering in safe rooms, and even when institutional and private investors hesitate over their next moves—the Israeli capital market proves once again its ability to rebound swiftly and decisively.
We should not underestimate this. This is a strategic event involving a regional power, and the concerns were real and justified. Still, a sharp correction on Sunday morning sent a clear message to investors: the Israeli market is alive, resilient, and kicking.
A day of success
Amid calls from many to shut down the stock exchange due to escalating security developments, the decision by Finance Minister Bezalel Smotrich and Israel Securities Authority Chairman Adv. Sefi Zinger to keep trading open as usual proved to be not only brave, but rational and correct. The stock exchange—not for the first time—did more than withstand the pressure: it responded with strength. The TA-35 Index ended the trading day with a gain of approximately 0.5%, on a trading volume of 1.1 billion NIS—a relatively high figure for a Sunday, which typically sees lower volumes. At its intraday peak, the index climbed as high as 1.18%, and other indices posted gains as well—surprising even seasoned market veterans.
The message is clear: while the Israeli market may be small in size, it is large in character. Despite redemptions on Thursday and despite the damage to property and life over the weekend, investors voted with their feet and left the security concerns behind.
Even against the backdrop of credit rating downgrades throughout the "Iron Swords" war and a persistent sense of uncertainty, the Israeli stock exchange continues to symbolize not only the resilience of the local economy but also the hope, determination, and belief among Israelis that tomorrow can and will be better.
In the end, the headlines may be dramatic, but markets are precise. And they’re saying something simple: the Israeli economy is stronger than fear.
Aviram Uzi is Managing Partner at Tier-A, a strategic communications consultancy. He advises listed and private companies—both in Israel and abroad—on capital markets strategy, branding, IPOs, and crisis management. He advises both listed and private companies in strategic planning, branding, IPO and crisis management.