Ranking of the strongest companies on the stock exchange: The bank that managed to enter the top ten
A mostly green week on the Tel Aviv Stock Exchange, with two major developments: the fourth-largest bank on the exchange entered the list of the ten largest companies, replacing a chip manufacturer that reported its results. Meanwhile, the largest company on the exchange jumped nearly 9% and is approaching a market value of one trillion shekels.
The last trading week on the Tel Aviv Stock Exchange was mostly green, but two changes stood out in the table of the largest companies: one historical, and one approaching a threshold never seen before.
The most prominent change is that Discount Bank entered the list of the ten largest companies on the Tel Aviv Stock Exchange. The bank, the fourth largest in the system, rose this week by 2.75% to a market value of 40.18 billion shekels, taking the tenth place at the expense of Nova, which was dropped from the list after reporting its results.
This entry is not accidental. It is part of a broad trend of strength in the entire banking sector, which has been continuing for weeks. This week, all banks rose: Leumi added 3.49%, Hapoalim 2.41%, and Mizrahi Tefahot 0.48%. Banks continue to enjoy high profitability and their role as a "safe anchor" in a period of geopolitical uncertainty. For Discount, which is in the midst of an ambitious efficiency plan that includes downsizing and a transition to technology, entering the top ten is a symbolic milestone that signals renewed investor confidence.
Nova, which vacated its place for Discount, reported this week on a second quarter full of records. Revenues totaled 255 million dollars, an increase of 16%, above analysts' forecasts, and the company provided a strong outlook. However, investors focused on one figure that weighed on the stock: gross profit margins fell slightly to 56.5%. The initial reaction was a decline of about 4% in trading in the USA. However, on Friday, the stock recovered and rose by about 3%, a sign that the market re-digested the reports and understood that the underlying picture remains strong.
Nova benefits from two growth engines linked to artificial intelligence: record demand for measurement solutions for advanced logic and advanced chip packaging. As the world invests more in data centers, its measurement devices are in higher demand. The drop from the top ten this week is mainly technical and does not necessarily reflect business weakness.
At the top of the ranking, Palo Alto continued to surge. The stock jumped this week by 8.95% to a massive value of 904.29 billion shekels, approaching the one trillion shekel threshold—a level no company on the Tel Aviv Stock Exchange has ever reached. The stock closed the week with an increase of about 9.6% in the USA, close to its all-time high. The jump is based on continued strong demand for cyber solutions in the AI era and a series of price target increases by analysts.
Even news that China has started a cybersecurity check for the company's products did not stop the stock, and analysts treated the story as "noise." Palo Alto is an American company with a dual listing, so its pricing is determined on Wall Street and not in Tel Aviv.
Tower recovered this week with an increase of 6.5% to 81.49 billion shekels, correcting after the collapse of previous weeks. Elbit rose 3.18%. Conversely, Teva fell 3.4% after the sharp jump of last week, and Azrieli lost 2.2%.
This week provides a small lesson on how the capital market works. Record reports from Nova were accompanied by a decline, while Discount Bank entered the top ten thanks to a broad sectoral trend. The lesson: sometimes what drives a stock is not only its own performance, but the direction of the entire sector and the expectations built in advance.
