TA-125 Tel Aviv 125 Index

Parent Index

NA

Indices informations

Countries Represented	Israel
Central Bank	Bank of Israel
Nickname	ILS
Related Constituents
Weightage of Largest Constituent
Weightage of Top 5 Constituents
All time High	2,158.12
All time Low	144.67
Market Capitalization	ILS 2,267,979,000
Weighting Methodology	Free Float Market Capitalization
Year to Date Return	–3.86%
Dividend Yield	1.78%
Price to earning Ratio	1.07

Listed Exchanges

Related Instuments

Sector Represented

Indices

TA-125 Index: The Heartbeat of Tel Aviv’s Financial Market

The TA-125 Index, also known as the Tel Aviv 125 Index, is the primary stock index of the Tel Aviv Stock Exchange (TASE). It represents the top 125 companies listed on the exchange and serves as a crucial indicator of the Israeli economy. This article explores the significance, composition, and influence of the TA-125 Index in the bustling city of Tel Aviv.

What is the TA-125 Index?

The TA-125 Index is designed to reflect the overall performance of the Israeli stock market by tracking the most prominent and actively traded stocks on the TASE. These 125 stocks are chosen based on their liquidity and market capitalization, ensuring that the index accurately represents the fluctuations and trends within the Israeli financial landscape.

Composition and Weighting

The composition of the TA-125 Index is regularly reviewed and adjusted every three months to ensure it remains relevant and representative of the current market conditions. The selection is primarily based on the following factors:

Market Capitalization: Companies with the highest market capitalization have a greater impact on the index.
Liquidity: Stocks that are more actively traded contribute more significantly to the index.
Industry Representation: The index seeks to maintain a diverse representation of various sectors in the Israeli economy.

As a market-weighted index, the stocks within the TA-125 Index are assigned weights based on their market capitalization. This means that larger companies exert a more substantial influence on the index’s movements compared to smaller ones.

Importance and Influence

The TA-125 Index holds immense importance for investors, traders, and financial institutions, providing a snapshot of the overall health and direction of the Israeli stock market. It serves as a benchmark against which investors can assess their portfolio performance and make strategic investment decisions.

Moreover, the index’s movements often reflect broader economic trends and investor sentiment within Israel. Strong performances by the TA-125 Index are indicative of a thriving economy, while declines may suggest underlying weaknesses or market concerns. Consequently, policymakers and analysts frequently monitor the index to gauge the effectiveness of economic policies and anticipate potential market shifts.

The Impact of the TA-125 Index on Tel Aviv

Tel Aviv, often referred to as the “Startup Nation,” boasts a vibrant and dynamic financial ecosystem. The presence of the TA-125 Index in this bustling city amplifies its significance as a hub for financial activities and attracts domestic and international investors alike. The index plays a crucial role in attracting capital and fostering investment in Tel Aviv-based companies, contributing to the city’s economic growth.

Additionally, the TA-125 Index influences the Tel Aviv Stock Exchange’s daily trading volume and liquidity. As investors closely follow the index’s movements, it sets the tone for trading activities throughout the day, leading to increased market participation and volatility.

Conclusion

The TA-125 Index serves as a barometer for the Israeli economy, reflecting the performance and sentiment of the country’s top 125 companies. Its composition, weightings, and influence make it an essential tool for investors and policymakers alike. As Tel Aviv continues to thrive as a global financial center, the TA-125 Index remains at the heart of the city’s financial market, driving growth, attracting investments, and shaping the future of Israel’s economy.

TA-125 Index Key Data

The TA-125 Index is the benchmark index of the Tel Aviv Stock Exchange (TASE) in Israel. It represents the performance of the 125 largest and most actively traded companies listed on the exchange, covering a wide range of industry sectors.

Components

The TA-125 Index includes companies from various sectors such as technology, finance, healthcare, energy, and more. Some of the prominent companies included in the index are Teva Pharmaceutical Industries, Bank Hapoalim, Check Point Software Technologies, and Israel Discount Bank.

Weighting Methodology

The weighting of each component in the TA-125 Index is determined by its market capitalization. Larger companies have a higher impact on the index’s performance compared to smaller ones. This means that the stock prices of larger companies will have a greater effect on the movement of the index.

Calculation Method

The TA-125 Index is calculated using a modified market-value weighted methodology. The index is reconstituted twice a year, in March and September, to ensure that it reflects the current market conditions and the changing composition of the exchange.

Importance of TA-125 Index

The TA-125 Index serves as a barometer for investors and market participants to gauge the overall performance of the Israeli stock market. It provides valuable insights into the performance of the largest and most influential companies in Israel and can be used as a benchmark for investment strategies and portfolio management.

Performance and Analysis

The performance of the TA-125 Index is closely monitored by analysts, investors, and fund managers. Changes in the index’s value can indicate trends in the overall market sentiment, economic conditions, and investor confidence.

An upward trend in the index suggests a positive market sentiment and economic growth, while a downward trend may indicate market volatility or economic downturn. Analysts often compare the performance of individual companies within the index to evaluate their relative strength against the broader market.

Conclusion

The TA-125 Index serves as a crucial indicator of the Israeli stock market’s performance. It includes the largest and most actively traded companies and provides valuable insights into the overall market sentiment. Understanding the key data related to the index, such as its components, weighting methodology, and calculation method, can assist investors in making informed decisions and analyzing market trends.