Foreign Investors Pour Hundreds of Millions of Shekels into Israeli Stocks
Despite mixed market trends and warnings from economists, foreign investors continue to increase their exposure to the local market, while institutional entities have taken the opposite approach.
The first trading week of August on the Tel Aviv Stock Exchange closed with a mixed trend, while global markets recorded decent gains. Local trading was characterized by the strengthening of bank and technology stocks on one hand, against notable weakness in the real estate and energy sectors on the other.
In terms of data, the TA-35 index rose by 0.47% and the TA-90 index fell by 2.21%. The quarterly index update boosted the average daily trading volume to 6.9 billion shekels, with the closing day breaking a record at approximately 16.1 billion shekels, led by Palo Alto shares. In the government bond market, the yield on 10-year bonds fell to 3.93%, and in the capital market, the Avisror offering stood out, raising 530 million shekels.
According to the review by the stock exchange's research unit, foreign investors "continued to increase exposure to the local market" and purchased shares worth about 615 million shekels net, mainly in the insurance and industrial sectors. Conversely, institutional entities reduced net holdings by about 277 million shekels, while the mutual fund market recorded strong momentum with net inflows of about 2.9 billion shekels.
In summary, the Israeli capital market shows stability in flagship indices alongside active foreign investor activity and high liquidity in funds. Despite the declines in real estate indices, the drop in bond yields and the success of new offerings signal continued investor confidence in the local market.
