Tel Aviv Stock Exchange: Trading volume surge drives 81% net profit growth
The exchange’s revenues rose 36% in the second quarter, with net profit jumping 81%. Increased capital market activity and higher clearing fees fueled the expansion, while the stock’s valuation has returned to a more moderate multiple.
The Tel Aviv Stock Exchange continues to benefit from a revenue surge that has translated into a sharp improvement in net profit. Second-quarter revenues rose 36% to 185 million shekels, driven primarily by increased market activity, higher clearing service revenues, and growth in trading and clearing fees.
Average daily trading volume for stocks reached 5.8 billion shekels in the second quarter, up from 3.2 billion shekels in the same period last year, directly boosting fee-based income.
CEO Eytai Ben-Zav noted that trading and clearing fee revenues rose 37% to 67 million shekels, supported by increased bond and mutual fund trading volumes. This growth occurred despite the second quarter having fewer trading days than the previous year, which slightly impacted revenues by approximately 5%.
Revenue from clearing services jumped 67% due to increased activity. Notably, 29% of this increase was attributed to the rise in financial asset values, as some fees are calculated as a percentage of asset volume. The exchange also recorded double-digit growth in registration fees, dues, and connectivity services.
"Other revenues" saw an 86% increase, largely due to the resumption of conference center operations. Overall, net profit totaled 79 million shekels, an 81% increase compared to the same quarter last year. For the first half of the year, revenues reached 368 million shekels (+38%), while net profit hit 156 million shekels, doubling from the 79 million shekels recorded in the first half of the previous year.
A "Normal" Multiple
After a 614% return over three years, the exchange's stock has trended downward over the last three months, losing about one-fifth of its value. The current market capitalization stands at 11 billion shekels. Based on an annualized net profit of over 310 million shekels, the P/E multiple has normalized to 35, down from levels exceeding 80 during the peak of market euphoria earlier this year. CEO Eytai Ben-Zav’s 3.6% stake is currently valued at just over 400 million shekels.
Strategic Milestones
The exchange is celebrating the success of shifting the trading week to Monday through Friday. According to the CEO, this transition has significantly boosted trading volumes. "The shift to Friday trading has led to a significant increase in foreign investor participation, and we are in ongoing dialogues with international players regarding new exchange memberships," Ben-Zav stated.
Management also sees potential in expanding the dual-listing track. Average daily trading volume on Fridays has reached approximately 4.6 billion shekels this year, with foreign investor participation rising to 41% (compared to 12.5% on Sundays in 2025). In the first half of 2026, 15 companies completed IPOs, raising a total of 6.1 billion shekels. The corporate bond market saw 117 billion shekels raised during the same period. The total market value of listed stocks reached 2.7 trillion shekels at the end of the second quarter, up from 1.5 trillion shekels a year earlier.
