In a notable development, the Tel Aviv Stock Exchange (TASE) on Thursday announced the expansion of its Retail Chains Index to include the broader food sector. The newly rebranded "Retail Chains and Food Companies Index" will include 26 stocks with a combined market capitalization of approximately 70 billion shekels (around $22.4 billion), of which 25% are food companies.
The change comes on the heels of several food company listings over the past year, including meat producer Baladi, dairy company Gad Dairies, rice and grain brand Soglowek (Sugat) and most recently, Tomer Import Marketing. Tomer went public through a reverse merger with defunct tech firm Cipia Vision, reflecting a growing trend of traditional firms entering the market through alternative paths.
The reshaped index includes long-established public companies such as Strauss Group, flavor extract maker Turpaz, juice producer Gan Shmuel and refrigeration group Kerur Holdings. Notably, firms like Willi-Food and Tomer—importers and distributors rather than producers—are currently classified as commercial companies, but the exchange said it will review their categorization.
In 2024, the original Retail Chains Index was one of the top-performing indexes on the TASE, posting a 55% return as Israeli households stockpiled essentials during wartime. With the inclusion of food companies, the exchange hopes to capture growing investor interest in defensive sectors that benefit from consistent demand for staples like food and medicine.
TASE Deputy CEO Yaniv Pagot said a new generation of younger investors is showing interest in thematic indices, and he believes the buzz around recent IPOs in the food sector—coupled with the launch of the expanded index—could encourage more food companies to list.
The exchange expects financial institutions to launch new investment products based on the index within three months, giving the public easier access to invest in the sector.
Meanwhile, the Tel Aviv market reacted positively Thursday to calming remarks from U.S. President Donald Trump. Speaking publicly, Trump denied any intention to use force to annex Greenland and said he had reached a framework agreement with NATO’s secretary general on a potential deal for the world’s largest island.
Following his comments, the Tel Aviv 35, 90, and 125 indexes each rose by roughly 0.5%, after earlier gains of over 1%. Shares of the stock exchange itself surged nearly 6% after it confirmed it is in talks to sell its index operations and form a strategic partnership with a major international firm.