Tel Aviv Stock Exchange updates index composition with heavy trading volume

The Tel Aviv Stock Exchange is updating its semi-annual index composition, with index-tracking funds adjusting holdings worth billions of shekels. Teva faces the largest sell-off while Palo Alto leads buying demand.

The Tel Aviv Stock Exchange is updating its stock index composition today, a move expected to generate an unusual trading volume of 15 to 17 billion shekels. According to Yaniv Pagot, Deputy CEO of Trading at the Exchange, most of the volume will be concentrated in the closing auction, as ETFs and tracking funds adjust their holdings to the new composition. SmartBull estimates that funds will adjust holdings worth 11.7 billion shekels, out of a total asset value of 94 billion shekels. The largest supply is expected in Teva stock, with sales of 1.4 billion shekels due to its reduced weight in the main indices. Following are El Al (356 million shekels), Bank Hapoalim (322 million shekels), and Sela Real Estate (265 million shekels). On the demand side, Palo Alto stands out with purchases of about 800 million shekels as part of its gradual entry into the TA-35 index. Pagot notes that this volume is equivalent to about four regular trading days, though lower than the record of 24 billion shekels set in the previous update six months ago.