What's Happening?
The Tel Aviv Stock Exchange has announced a significant change in its trading schedule, ending its long-standing practice of Sunday trading. Starting in January 2026, the exchange will operate from Monday to Friday, aligning with most global markets.
This decision, approved by Finance Minister Bezalel Smotrich, aims to attract more foreign investors by eliminating the mismatch between Israel's trading days and those of international markets. Previously, the exchange operated from Sunday to Thursday, a schedule rooted in Israel's unique workweek where Sunday is a business day, and Friday and Saturday constitute the weekend. The change is expected to facilitate better integration with global financial systems and potentially increase foreign investment in Israeli stocks.
Why It's Important?
The shift in trading days is poised to have a substantial impact on Israel's financial sector and its integration into global markets. By aligning with the international Monday-to-Friday trading schedule, the Tel Aviv Stock Exchange aims to attract more foreign investors, who have historically been at a disadvantage due to the non-overlapping trading days. This change could lead to increased foreign exposure to Israeli stocks, potentially bringing billions of dollars into the market. Additionally, the move is seen as a step towards Israel's inclusion in the MSCI Europe index, which could further enhance the country's financial market visibility and investment inflows. However, the change also raises concerns about employment terms for financial sector workers, as the reduction in trading days may lead to negotiations over salaries and working hours.
What's Next?
The transition to a Monday-to-Friday trading schedule will require adjustments within Israel's financial sector. The Tel Aviv Stock Exchange and banks will need to negotiate new employment terms with labor unions to address potential changes in salaries and working hours. The exchange plans to implement shorter trading hours on Fridays to accommodate the start of the Sabbath, with trading ending earlier than on regular days. As the change takes effect, stakeholders will be closely monitoring its impact on market dynamics and foreign investment levels. The success of this transition could set a precedent for further integration of Israel's financial markets with global systems.
