Gulf bourses end lower
Stock markets in the Gulf ended lower on Thursday as markets weighed the risk of a widening conflict in the region, with the Dubai index falling for a fifth consecutive session.
Israel’s military on Thursday urged residents of over 20 towns in south Lebanon to evacuate their homes immediately, as it pressed on with an incursion after suffering its worst losses in a year of fighting Iran-backed armed group Hezbollah.
As it pushes into south Lebanon, Israel is also weighing its options for retaliation against Iran.
The Islamic Republic launched its largest ever assault on Israel on Tuesday, in what it said was retaliation for Israel’s assassination of senior Hamas and Hezbollah leaders and its operations in Gaza and Lebanon.
Saudi Arabia’s benchmark index dropped 0.7 percent, with aluminium products manufacturer Al Taiseer Group losing 0.9 percent and Al Rajhi Bank falling 0.9 percent. The Saudi index registered its biggest weekly loss of 3.4 percent since May.
Sri Lanka shares little changed
Sri Lankan shares were little changed on Thursday as communication services stocks fell and IT stocks rose.
The CSE All Share index inched down to close 0.04 percent lower at 11,929.99.
Communication services was the biggest percentage drag sectorally, falling 1.4 percent while IT services stocks’ 0.8 percent climb was the biggest sectoral percentage gain.
Trading volume on the CSE All Share index fell to 59.4 million shares from 73.2 million in the previous session.
The equity market’s turnover fell to 1.34 billion Sri Lankan rupees ($4.6 million) from 2.30 billion rupees in the previous session, according to exchange data.
Foreign investors were net sellers, offloading stocks worth 76.8 million rupees, while domestic investors were net buyers, purchasing shares worth 1.29 billion rupees, the data showed.
London stocks open higher
The continued rise in energy stocks lifted UK shares at the open on Friday, but not by enough to prevent a weekly decline that was sparked by an escalation in the Middle East conflict.
The blue-chip FTSE 100 was up 0.1 percent by 0720 GMT, while the mid-cap FTSE 250 moved 0.4 percent higher.
However, both indexes look set to register weekly declines of 0.4 percent and about 2 percent, respectively.
Heavyweight oil and gas shares advanced 0.8 percent, rising for the sixth consecutive session in tandem with oil prices as the Middle East conflict raised worries about disrupting supply.
The personal goods index led sectoral gains with a 2 percent rise, while the broader aerospace and defence index was the bottom performer, losing 0.5 percent.
European shares rise
European shares inched higher on Friday, supported by regional energy stocks after crude oil prices climbed on concerns over a deeper conflict in the Middle East.
The pan-European STOXX 600 edged 0.2 percent higher. Still, the index is on track for its worst week since Sept. 2, if losses hold.
The index tumbled by nearly 2 percent this week as investors shied away from making significant bets amid escalating tensions in the Middle East.
The only sector to shine was energy, with a 4.5 percent jump so far this week.
The sector is on track for its best weekly performance in nearly six months, and also stood out as the sole sub-index to register positive gains this week.
Automobile, on the other hand, was the worst-performing sector this week with a nearly 7 percent slump.
Hong Kong stocks reach again for 20-month peak
Hong Kong stocks rose more than 2 percent on Friday, still cheering China’s massive economic stimulus proposals, while other global markets were skittish about escalating tensions in the Middle East.
Asian stocks fell and oil prices were headed for their sharpest weekly gain in more than a year on those tensions and as investors waited for a US jobs report later in the day.
Chinese ADRs fell more than 2 percent overnight.
Mainland markets are closed for a week-long National Day break.
They had rallied strongly on Monday, ahead of the holiday, as retail investors rushed to buy stocks after Beijing announced its most aggressive stimulus measures since the pandemic, ranging from outsized rate cuts to fiscal support, in an attempt to shore up its ailing economy.
Chinese H-shares listed in Hong Kong, the Hang Seng China Enterprises Index rose 2.55 percent to 8,114.23, while the Hang Seng Index was up 2.2 percent at 22,600.62.
Indian shares set to open higher
Indian shares are set to open higher on Friday, with investors expected to buy the dip after a slump in the previous session, while market reaction to non-bank lender Bajaj Finance’s quarterly pre-earnings update will also be in focus.
The GIFT Nifty was trading at 25,431.5 points, as of 7:47 a.m. IST, indicating that the NSE Nifty 50 will open above its previous close of 25,250.10.
The Nifty and the S&P BSE Sensex indexes logged on Thursday their steepest percentage declines since early August, as investors maintained a cautious stance amid fears of further escalation of the Middle East conflict and foreign outflows from domestic equities.
Iran fired ballistic missiles at Israel earlier in the week, stoking fears that crude supplies from the world’s top oil-producing region may be threatened if the conflict intensifies. Oil prices climbed while global stocks edged lower.
While geopolitical tensions in the Middle East continue to keep investors on tenterhooks, traders are likely to resort to buying the dips after the drop in the previous session, two traders said on Friday.