The TA-125 Index, typically referred to as the Tel Aviv 125 and formerly the TA-100 Index, is a stock market index of the 125 most highly capitalised companies listed on the Tel Aviv Stock Exchange (TASE). The index began on 1 January 1992 with a base level of 100. The highest value reached to date is 2152.16, in January 2022.[1] On 12 February 2017, the index was expanded to include 125 instead of 100 stocks, in an attempt to improve stability and therefore reduce risk for trackers and encourage foreign investment.[2][3]
Overview
The index is maintained by the Tel Aviv Stock Exchange and is calculated in real-time during trading hours and published every 30 seconds. The index combines the companies that are listed in the TA-35 and TA-90 indices.[4]
The TA-35 Index is the TASE's flagship index. It was first published in 1992 under the name "MA'OF Index". The TA-35 index tracks the prices of the shares of the 35 companies with the highest market capitalization on the exchange. It serves as an underlying asset for options and futures, Index-Linked Certificates and Reverse Certificates traded on the exchange and worldwide. The index also began on 1 January 1992 with a base level of 100, and expanded from 25 to 35 stocks together with the TA-125 in February 2017.
TA-90 Index
The TA-90 is a share index of the 90 most highly capitalised companies listed on the Tel Aviv Stock Exchange, which are not included in the TA-35 index. The index began in 1999 with a base level of 100. The index was expanded on 12 February 2017 to include 90 instead of 75 stocks, in an attempt to improve stability and therefore reduce risk for trackers and encourage foreign investment.[5][6]
Weighting
Since February 2008, the TA-125 is calculated using a free float method, the total market capitalization of the companies weighted by their effect on the index, so the larger stocks would make more of a difference to the index as compared to a smaller market cap company. The basic formula for any index is (be it capitalization weighted or any other stock index).
Index level= Σ(Price of stock* Number of shares)*Free float factor/ Index Divisor.
The Free float Adjustment factor represents the proportion of shares that is floated as a percentage of issued shares. The free-float method, therefore, does not include restricted stocks, such as those held by company insiders.[citation needed]
A company's weight in the index has an upper-limit of 9.8%, the weight of a company that should be higher is limited to 9.8% and the rest is divided between the other constituents of the index. Since October 2007 this restriction has set the effective weight of Teva Pharmaceutical Industries at 9.8%.[citation needed]
To be included in the TA-35 index the company's stock also need to adhere to the following requirement: Meet a public holding threshold of at least 25% and a minimal value of 600 million NIS (to ensure that there is a significant Free float holding, which is not controlled by insiders).[citation needed]
The constituents of the indices are determined twice a year; on the first trading day in January and in July. The largest companies in the TA-125 index are promoted to the TA-35 index if their market capitalisation is 20% more than a current company.[citation needed]
Annual Returns
The following table shows the annual development of the TA-125 Index since 1993.[7]
Year
Closing level
Change in index in points
Change in index in %
1993
247.67
1994
173.57
−74.10
−29.92
1995
208.23
34.66
19.97
1996
211.04
2.81
1.35
1997
290.96
79.92
37.87
1998
299.89
8.93
3.07
1999
487.23
187.34
62.47
2000
494.58
7.35
1.51
2001
446.79
−47.79
−9.66
2002
332.45
−114.34
−25.59
2003
534.39
201.94
60.74
2004
635.95
101.56
19.00
2005
822.99
187.04
29.41
2006
925.60
102.61
12.47
2007
1,154.59
228.99
24.74
2008
564.09
−590.50
−51.14
2009
1,066.73
502.64
89.11
2010
1,223.16
156.43
14.66
2011
978.49
−244.67
−20.00
2012
1,049.06
70.57
7.21
2013
1,207.69
158.63
15.12
2014
1,288.93
81.24
6.73
2015
1,315.08
26.15
2.03
2016
1,282.37
−32.71
−2.49
2017
1,366.22
83.85
6.54
2018
1,333.18
−33.04
−2.42
2019
1,616.70
283.52
21.27
Constituents
TA-125 Index Components (as of 23 August 2020):[8]
As of 2023, research by "Calcalist" established a review on the state of gender representation among executive positions within the TA-125 listed companies. Out of 2,063 executive positions identified within these companies, 570 were held by women, 27.6% of the total positions. Specifically, women accounted for approximately 30.2% of positions within Board of Directors, a slight raise from the previous year's 27.8% figure. However, the percentage of women in general management has remained unchanged at approximately 24.8%. [9]
References
^ת"א 100 – מבט לשווקים [TA 100 – Market overview] (in Hebrew). TheMarker. September 2011. Retrieved 2 September 2011. שער גבוה 12 חודשים
