TASE Expands Its Equity Indices with Exciting New Launches
In an effort to diversify investment options for both local and international investors, TASE is excited to unveil two groundbreaking equity indices: the TA-Technology 35 Index and the TA-Israel Energy Index. The launch of these indices is expected to significantly enhance market competition and improve liquidity within TASE.
Focused Indices Address Investor Demand
The decision to launch these new indices stems from a marked increase in interest from investors seeking to tap into the technology and energy sectors. The new developments will join the multiple indices introduced recently, which includes the popular TA-Real Estate 35 and TA-Defense indices, among others.
These new indices aim to provide issuers of tracking products, such as investment firms and insurance agencies, with the opportunity to develop innovative investment tools that track these benchmarks. This means that investors will have access to an expanded array of investment opportunities tailored to their financial goals.
Introducing the TA-Technology 35 Index
One of the most anticipated launches is the TA-Technology 35 Index. Modeled after the well-known TA-35 index, this new index will consist of the 35 technology stocks with the highest market capitalizations. As a key feature, it will include firms concurrently listed on international exchanges, ensuring high liquidity.
The market cap of all shares included in the TA-Technology 35 Index is estimated to exceed NIS 424 billion, highlighting its significance in the Israeli market landscape. The largest share, represented by Elbit Systems, boasts a market cap of NIS 105 billion, while the smallest, Perrion Networks, holds at NIS 1.2 billion. This solid foundation allows for significant participation from institutional investors.
Liquidity and Market Competitiveness
The methodology for this index is built upon sound principles that promote liquidity, making it an attractive option for various investors. The expectation is that the TA-Technology 35 will not only draw attention from local investors but also attract international eyes, adding to its competitiveness.
Currently, only NIS 863 million is invested in the existing TA-Technology index, which is considered low given the market cap it represents. The introduction of this new index is expected to boost investment levels and unlock additional capital flow into the sector, similar to the investment patterns observed in banking indices.
Transforming the Energy Sector: The TA-Israel Energy Index
The second significant launch, the TA-Israel Energy Index, represents a pivotal shift in how energy companies are grouped and invested in on TASE. This new index will encapsulate all sectors of energy, including fossil fuels, oil and gas exploration, as well as renewable energy sources.
With the inclusion of approximately 27 shares from various energy sectors, the index is projected to have a combined market cap exceeding NIS 219 billion. Notably, it will feature major companies with market caps surpassing NIS 10 billion, enhancing its stature within the energy investment landscape.
Market Structure and Potential
For this index, the minimum market cap for inclusion stands at NIS 500,000 million. Shares from companies incorporated in Israel will have a maximum weight seen at 7%, while shares from companies with Israeli interests operating abroad will be capped at 3%. This structure ensures a diversified representation of the energy sector at its launch.
Currently, the green energy sphere is experiencing an explosive growth phase, with Israeli firms pioneering extensive projects globally. The need for innovative energy solutions is rapidly increasing, particularly with the rise in demand for electricity driven by advancements in Artificial Intelligence (AI) technologies.
Future Prospects and Continuing Development
TASE remains optimistic about the market's response to these new indices, which aims to provide investors with richer access to the thriving technology and energy sectors. The official launch date for both indices falls on February 6, 2026.
TASE is dedicated to supporting interested parties in reaching out to listed companies and establishing connections with relevant executives. By engaging with TASE, investors can gain insights and opportunities within this evolving market landscape.
Frequently Asked Questions
What are the new indices being launched by TASE?
The new indices include the TA-Technology 35 Index, which focuses on top technology companies, and the TA-Israel Energy Index that encompasses diverse energy sectors.
When will these indices be launched?
Both the TA-Technology 35 and TA-Israel Energy Indices are set to launch on February 6, 2026.
What is the market cap requirement for the TA-Israel Energy Index?
The minimum market cap requirement for a company to be included in the TA-Israel Energy Index is NIS 500,000 million.
How many companies will be part of the TA-Israel Energy Index?
The TA-Israel Energy Index will include approximately 27 companies from various segments of the energy sector.
What is the focus of the TA-Technology 35 Index?
The TA-Technology 35 Index is designed to represent the 35 technology shares with the highest market capitalization within TASE.
