“The Tel Aviv Stock Exchange’s benchmark TASE-25 index closed at a record high Wednesday, capping a 16.2% surge that began last August.” A day previously, UBS analysts had observed how foreign investors are returning to the Israeli stock market,  possibly for the first time since it entered the MSCI developed markets index in May 2010.

So, what’s going on? There are a number of factors at play, all coming together at once.

First, it was stated at the time that it would take foreign investors some time before adjusting to TASE’s new positioning amongst global indexes. Previously, TASE had a strong reputation in the MCSI emerging market section, yet then had to prove itself from scratch amongst the big players.

Second, TASE has thrown out its old management in recent weeks and has brought in Yossi Beinart, who boasts significant experience in American markets. Since the process begun in the mid summer, turnover has been climbing steadily back towards 2010 levels.

Third, on the financial level, companies, especially banks, are reporting profits. The economy is relatively stable. Interest rates are set to remain low for the next year. All positive signs that speculators look for.

So, what next? There is a threat of a strike at the ports, which could put a temporary hold on TASE.  And some analysts believe that “the recent rally is not out of love for stocks, but because of dislike of the alternatives.”

Maybe. One fact is clear. Overseas players are considering the TASE. The initial inflow of revenues from the new gas fields is also playing a role in this renewed interest. If financiers are looking for a party in 2014, Tel Aviv may be the place to visit.