The Tel Aviv Stock Exchange is seeing a major rally in early 2026, with insiders selling shares at high prices while big institutions keep buying despite climbing valuations. This trend follows a strong 2025 where the TA-125 index jumped 51 percent, driven by optimism over peace deals and economic growth in Israel.
Market Surge Sparks Insider Moves
Insiders at several companies have cashed in on the rally by selling shares worth about 1.8 billion shekels since the start of 2026. These sales come as stock prices hit record highs, giving company leaders and major investors a chance to lock in profits.
For example, controlling shareholders in firms like Next Vision and Tophaz have offloaded stakes. Real estate companies such as Donitz and Netanel Group also joined the selling wave. This activity shows how the market boom tempts insiders to sell while prices stay hot.
At the same time, the broader market keeps climbing. The TA-125 index gained another 7 percent in the first weeks of 2026, building on last year’s gains. Foreign investors poured billions into Israeli stocks, focusing on defense and insurance sectors.
Institutions Fuel the Buying Spree
Insurance firms and investment houses lead the charge in buying local equities. They have channeled billions of shekels into the market, even as valuations rise to new levels.
This buying supports the rally and shows confidence in Israel’s economy. Experts point to recent events like the ceasefire in Gaza and reduced threats from Iran as key reasons for this optimism.
Retail investors hold a big share too. They own about 56 percent of the Tel Aviv Stock Exchange itself, and many gained 15 percent in recent months. Institutions profited alongside them, creating a balanced market dynamic.
One senior investor noted that high prices encourage sales, but strong fundamentals keep buyers coming. This mix keeps the exchange active and growing.
Key Deals Highlight Trends
Recent transactions reveal the rally’s impact. AP Partners sold stakes in RP Optical and TopGum at discounts to market prices, yet still made big profits.
In RP Optical, the sale happened at a 24 percent discount from the previous day’s close. TopGum saw a 15 percent discount. Shares in these companies rose sharply before the sales, outpacing the TA-125 index.
Other deals include sales in Mer Group and PCB Technologies. These moves generated cash for sellers while attracting institutional buyers looking for growth.
Here are some standout deals from early 2026:
- Next Vision: Insiders sold shares worth millions after a price surge.
- Tophaz: Major investors offloaded stakes amid rising valuations.
- Donitz: Real estate firm saw heavy insider sales.
Economic Factors Driving the Rally
Israel’s economy ranks high globally, thanks to the stock market’s performance. The country placed third in a recent ranking of 2025’s best economies, up from last year.
Foreign investors bet on Israeli resilience despite past conflicts. The TA-35 index of blue-chip companies jumped 53 percent in 2025, while the TA-90 rose 46 percent.
Trading volumes increased by 56 percent, showing more activity. Defense shares led the way, boosted by global demand.
| Index | 2025 Gain | Early 2026 Gain |
|---|---|---|
| TA-125 | 51% | 7% |
| TA-35 | 53% | 5% |
| TA-90 | 46% | 6% |
This table shows how major indexes performed, highlighting the ongoing rally.
Optimism stems from peace progress and tech sector growth. Israeli tech workers saw a 15 billion dollar windfall in 2025 from exits and stock gains.
What This Means for Investors
The rally offers chances for gains but also risks from high valuations. Insiders selling might signal peaks, yet institutional buying suggests more upside.
Analysts watch for continued foreign investment. If peace holds, the market could keep rising through 2026.
Investors should track economic indicators and global events. Balancing buys and sells remains key in this dynamic environment.
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