Presentation and Analysis of Changes in Equity and Bond Indices

The Bank of Israel keeps current track of activity in the domestic bond and equity market as part of the process of managing economic policy. Developments in the capital markets have a direct impact on the economy’s financial stability, access to credit, and the cost of raising funds for businesses and consumers. The Information and Statistics Department of the Bank of Israel maintains an information system based on data from the Tel Aviv Stock Exchange that include all securities traded on the Exchange as well as supplemental information about issuing companies. The study below describes the Stock Exchange’s methodology for calculating and updating the main equity and bond indices. On the basis of this methodology, the Bank of Israel calculates the contribution of each security to changes in index levels. This transition to individually granular analysis of securities allows us to aggregate the securities by additional characteristics, such as Stock Exchange industry or issuer’s residency, and to determine the different the contributions of each group to index change. In the last part of the study, we present calculations and analyses of the equity and bond indices in the first few months of the Swords of Iron War