Stock Markets May 26, 2026 10:55 AM

Tel Aviv Stocks Retreat as Banking and Financial Names Weigh on TA-35

Broad declines leave TA-35 down nearly 1% as select defense and renewable names buck the trend

By Ajmal Hussain ESLT ENLT PHOE

Israel's benchmark TA-35 index closed lower on Tuesday, slipping 0.96% as losses across banking, financials and insurance shares outpaced gains in select defense and renewable stocks. Market breadth favored decliners by a significant margin, while commodity and currency moves showed mixed signals.

Tel Aviv Stocks Retreat as Banking and Financial Names Weigh on TA-35
ESLT ENLT PHOE

Key Points

  • TA-35 closed down 0.96% as declines in banking, financials and insurance stocks led the market lower.
  • Top gainers included Elbit Systems (ESLT) +9.50% and Enlight Renewable Energy (ENLT) +6.36%, with ENLT reaching an all-time high at 29,250.00.
  • Major financial names underperformed: Phoenix Holdings (PHOE) -3.97%, Israel Discount Bank (DSCT) -3.81%, and Mizrahi Tefahot (MZTF) -3.69%; overall market breadth favored decliners (299 down, 182 up).

Israel equities finished the session in negative territory on Tuesday, with the TA-35 index ending the day down 0.96% in Tel Aviv. The market's downward move was driven primarily by weakness in banking, financials and insurance stocks.

The strongest performers within the TA-35 were led by Elbit Systems Ltd (TASE:ESLT), which jumped 9.50% - a rise of 21,000.00 points - to close at 242,000.00. Renewable energy developer Enlight Renewable Energy Ltd (TASE:ENLT) also posted a notable gain, adding 6.36% or 1,750.00 points to finish at 29,250.00. Clal Insurance Enterprises Holdings Ltd (TASE:CLIS) advanced 2.44%, increasing 690.00 points to end the day at 29,020.00.

On the downside, Phoenix Holdings Ltd (TASE:PHOE) was the session's weakest name, slipping 3.97% - down 790.00 points - to 19,100.00 at the close. Israel Discount Bank Ltd (TASE:DSCT) fell 3.81% or 125.00 points to finish at 3,160.00, while Mizrahi Tefahot (TASE:MZTF) declined 3.69%, a drop of 860.00 points to 22,450.00.

Market breadth favored losers: on the Tel Aviv Stock Exchange, 299 securities fell versus 182 that rose, and 70 issues finished unchanged.

Notably, Enlight Renewable Energy Ltd (TASE:ENLT) reached an all-time high during the session, closing at 29,250.00 after a 6.36% gain of 1,750.00 points.

Commodities showed mixed price action. Crude oil for July delivery declined 2.59% - down $2.50 - to trade at $94.10 a barrel. By contrast, Brent oil for August delivery climbed 4.04% or $3.77 to $97.19 a barrel. Precious metals eased modestly, with the August Gold Futures contract down 0.16% or $7.20 to $4,549.20 a troy ounce.

In currency moves, the USD/ILS rate fell 1.23% to 2.84, while the EUR/ILS pair dropped 1.39% to 3.30. The US Dollar Index Futures was quoted down 0.08% at 99.10.


Market context

The day’s activity shows a market where sectoral pressure in finance-related names outweighed gains in selected defense, renewable energy and insurance stocks. Breadth metrics underline that more stocks declined than advanced, with energy and currency dynamics adding nuance to the session’s overall decline.

Risks

  • Concentration of losses in banking and financial sectors may pressure financial stocks and related indices - impacting the banking and financial sectors.
  • Commodity price swings - divergent moves in crude benchmarks and gold - introduce uncertainty for energy and commodity-sensitive sectors.
  • Currency volatility, with USD/ILS and EUR/ILS both weakening, could affect importers, exporters and multinational earnings reporting in local currency terms.

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