Special Update & Report: TASE Indices Reform

This reform presents substantial modifications to the structure and weighting of stocks within public indices, with a focused aim to bolster equity liquidity.

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Dear Clients & Friends,

We trust you and your loved ones are navigating through these challenging times with resilience. Today, we are reaching out to share a special update  concerning the recent indices reform by the Tel Aviv Stock Exchange (TASE), which was implemented today. This reform presents substantial modifications to the structure and weighting of stocks within public indices, with a focused aim to bolster equity liquidity.

Key points from the reform include:

1. The introduction of a Liquidity Parameter replacing the previous Public Holding Tiers.

2. Expansion of Blue-Chip and Mid-Cap Indices to encourage foreign investment.

3. New Free Float and Weight Cap Requirements.

4. Significant equity holding adjustments necessitated for ETFs.

5. A transition to quarterly from monthly Indices Adjustment Timing.

The reform is anticipated to have a considerable impact, especially on low liquidity companies. Furthermore, it may have increased impact for the tech and real estate sectors due to the revised weight ceilings in TASE indices for these categories.

For a comprehensive understanding, please use the form above to receive a copy of the report.

We are at your disposal for any further inquiries or clarification you may need.

Warm regards,

The Team at ARX