The benchmark TA-35 index rose about 2%. The broader TA-125 climbed 2.32%, while the TA-Banks index advanced 3.13%. The TA-Insurance index led gains with a 5.65% jump, and the TA-Technology index increased 1.83%.
Shares of insurance companies were among the top performers. Migdal Insurance rose 6.36% and Phoenix Holdings gained 6.15%. Real estate developer Danya Cebus also advanced, adding 6.11%.
The rally came after Israeli officials said Saturday night that they see a high probability that U.S. President Donald Trump’s “21-point plan” will be implemented. The plan includes a framework for a deal to secure the release of hostages held in Gaza.
According to officials familiar with the discussions, most elements of the plan are considered acceptable to Israel and even viewed as favorable. However, Prime Minister Benjamin Netanyahu is still seeking changes to several clauses before his scheduled meeting with Trump.
The market is also looking ahead to the Bank of Israel’s monetary policy decision, set to be announced Monday. For weeks, analysts had expected the central bank to deliver its first interest rate cut in nearly two years, in response to slowing economic activity and inflation that has eased from last year’s highs.
But economists now widely believe Governor Amir Yaron will keep the benchmark rate unchanged at 4.5%, continuing what they describe as his ultra-cautious approach to monetary policy. Yaron has repeatedly stressed the importance of stability as Israel faces geopolitical and financial uncertainties.