A Historic Milestone for TASE
The Tel Aviv Stock Exchange (TASE) is set to implement its largest-ever equity indices semi-annual update during the closing auction. This event signifies a crucial moment, driven by the remarkable growth of assets managed by funds that track TASE indices, which have reached a staggering NIS 82 billion. Such a striking increase in managed assets underscores the index update's importance.
Context Behind the Update
TASE has experienced a substantial rise in passive investments in its indices. In just ten months, significant inflows totaling NIS 12 billion have been noted, along with an appreciation of NIS 20 billion across these indices. This growth demonstrates that investors are increasingly confident in TASE's offerings.
Developments in TASE's Indices
As part of its strategy to innovate and enhance its market performance, TASE has introduced several new equity indices, including TA-Defense, TA-Infrastructure, and the TA-Real Estate 35 Index. In total, TASE has launched 11 new indices since the start of the year, indicating a proactive approach to meet evolving market demands.
Review of Index Entry Requirements
Yaniv Pagot, TASE's EVP and Head of Trading, has announced significant updates regarding the entry requirements for leading equity indices, focusing on the minimum market capitalization needed for inclusion. This review shows a remarkable increase in the valuations of the indices' constituents, ultimately enhancing liquidity and competition.
New Entry Thresholds
According to TASE's Trading Department, the new entry thresholds for several indices have been adjusted as follows:
- TA-35 Index: The entry threshold is set at NIS 10.7 billion, up from NIS 7.6 billion earlier.
- TA-90 Index: Now requires an entry threshold of NIS 2.5 billion, which has increased significantly in recent years.
- TA-SME60 Index: The new threshold is NIS 1.3 billion, a notable rise that reflects the changing landscape.
Assets Under Management (AUM) Overview
The current levels of asset management as of the most recent update highlight the following:
- TA-125 Index: Managed assets are NIS 38 billion.
- TA-90 Index: Currently has NIS 19 billion managed.
- TA-35 Index: Manages assets totaling NIS 11 billion.
- TA-SME60 Index: Total of NIS 690 million managed.
Market Capitalization Insights
The median market capitalization amongst various indices shows promising figures:
- TA-35 Index: NIS 19 billion median.
- TA-90 Index: NIS 4.1 billion median.
- TA-SME60 Index: NIS 1.4 billion median.
Significance of the Update
Election of new index constituents reflects the growing value and quality of companies listed on TASE. The index update marks a significant achievement and points toward a bright future for the Israeli capital market, as confidence grows among investors.
Contact Information
For further inquiries, you can reach out to:
Orna Goren
Head of Communication and Public Relations Unit
Tel: +972 76 8160405
Email: tase.ir@tase.co.il
Frequently Asked Questions
What is the significance of TASE's recent update?
This update reflects record-high assets under management and indicates growing investor confidence in TASE.
How many new indices has TASE launched recently?
TASE has successfully launched 11 new indices since the start of the year.
What are the new entry thresholds for TASE indices?
The entry thresholds have increased significantly, notably for the TA-35 Index to NIS 10.7 billion.
What does the median market capitalization indicate?
The median market capitalization showcases the overall improvement and quality of companies within the indices.
Who can I contact for more information about TASE?
For inquiries, reach out to Orna Goren, Head of Communication, at +972 76 8160405.
