The main indices on the Tel Aviv Stock Exchange closed higher on Friday, as fears of renewed hostilities with Iran eased. The Tel Aviv 35 Index gained 1.00 percent, the Tel Aviv 125 Index rose 0.75 percent, and the BlueTech Global Index added 1.07 percent. The corporate bond index also edged up slightly, with strong overall trading volumes in both equities and bonds.

Gains were led by the chemical, rubber, and plastic sector, which climbed more than 5 percent. Shares of Israel Chemicals Limited extended their rally with a rise of more than 6 percent following positive analyst recommendations, while its parent company Israel Corporation also advanced sharply. Mega Or, recently added to the Tel Aviv 35 Index, jumped nearly 8 percent, bringing its gain for the year to date to about 130 percent.

In contrast, the two largest banks weighed on the market, with Bank Leumi and Bank Hapoalim both declining by more than 1 percent. Several other stocks posted notable losses after recent strong performances, even as the broader market maintained its upward momentum. The shekel remained stable against the United States dollar and slightly weaker against the euro.