Tel Aviv Exchange Closes Mixed as Tower Posts Record Q3 Sales
The Tel Aviv Stock Exchange closed mixed as Tower Semiconductor reported record sales despite tumbling shares. Meanwhile, Perion Network surged on a major acquisition deal, and US markets rebounded.
The Tel Aviv Stock Exchange closed mixed on Monday, with the flagship TA-35 index dropping 0.5%, while the broader TA-125 inched up 0.04% and the TA-90 gained 0.2%. Market activity was marked by notable declines in several major tech and defense stocks alongside strong performances from acquisition targets.
Tower Semiconductor shares fell 8.8%, extending a 11.4% plunge on Wall Street the previous Friday. The sharp decline occurred despite the company releasing stellar third-quarter financial results for 2026, reporting record sales of $526 million—a 33% increase compared to $396 million in the third quarter of 2025. Gross profit reached a record $179 million, up 92% year-over-year, while operating profit surged 2.5-fold to $127 million. CEO Russell Ellwanger emphasized that the company is entering its strongest growth phase, forecasting full-year 2026 revenues of $2 billion.
Meanwhile, Perion Network surged 31.8% following the announcement of its acquisition by an Indian firm for $420 million at a 34.5% premium. In other market moves, Israel Canada dropped 9.23% as it advanced its merger with Acro Real Estate, which resulted in a 45% valuation cut for Acro. Palo Alto Networks fell 4.9%, Elbit Systems dropped 2.4%, and Next Vision tumbled 3.4%.
Trading volumes reached approximately NIS 5.1 billion in equities, NIS 4.3 billion in bonds, and NIS 1.2 billion in short-term bills (Mamak). Government bond yields saw slight downward pressure, with the Tel Gov-General and Tel Gov-Fixed indices both slipping 0.11%, while the Ministry of Finance launched its November issuance program, raising roughly NIS 2.8 billion out of a planned NIS 14 billion. In the foreign exchange market, the shekel traded at 3.1360 against the dollar, 3.5168 against the euro, and 4.2082 against the British pound.
Globally, US markets opened on a positive note following a month of steep declines in semiconductor and artificial intelligence stocks. Attention turns to Apple's earnings report, midterm elections, and upcoming labor data. Hopes for diplomatic progress between Iran and the United States and the potential reopening of the Strait of Hormuz drove oil prices down by roughly 7% to around $106 per barrel for Brent crude.
