The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0244 GMT - Fortescue expects to hit the lower end of its annual iron-ore shipment target, but RBC Capital Markets thinks that is too much of a stretch. Fortescue had forecast total iron-ore shipments of between 192 million-197 million tons in FY 2024, but faced disruptions in 3Q from an ore car derailment and bad weather. "While guidance has been maintained, albeit at the low end, it implies that Fortescue will need to ship 52 million tons in 4Q to hit the low end of guidance," analyst Kaan Peker says in a note. RBC forecasts annual shipments of 190 million tons. (david.winning@wsj.com; @dwinningWSJ)
0238 GMT - Fisher & Paykel's opportunity in the anaesthesia market prompts Forsyth Barr to upgrade the New Zealand medical device maker to neutral, from underperform. In a note, analyst Matt Montgomerie says anaesthesia is a long-term bet but the market is large. It also points to the body of clinical research available. "Anaesthesia products represent only 4% of our FY 2024 revenue forecast but are at a critical point for investors to take notice, with potential for the anaesthesia opportunity to be a key driver for the investment case over the next decade," Forsyth Barr says. (david.winning@wsj.com; @dwinningWSJ)
0222 GMT - Keppel DC REIT stands to benefit from its sale of a 100% interest in Intellicentre Campus in Sydney for A$174.0 million, UOB Kay Hian analyst Jonathan Koh says in a research report. The deal represents a 35% premium to the latest valuation of A$128.5 million and is more than double the original A$70.0 million investment, the analyst notes. The REIT will also reinvest A$90.0 million of the proceeds into an Australia Data Center Note, which is guaranteed by Macquarie Technology Group, and will receive a regular income stream starting from A$6.3 million a year, Koh adds. The brokerage raises the target price on the REIT to S$2.15 from S$2.10 with an unchanged buy rating. Units are 1.8% higher at S$1.72. (ronnie.harui@wsj.com)
0214 GMT - Axiata Group subsidiary Dialog's proposed merger with Airtel Lanka could shave 7% of the group's 2025 net profit, UOB Kay Hian analysts Chong Lee Len and Ku Wei Xiang say in a note. That's because Axiata's stake in Dialog will be diluted to 73.8% from 82.3%, with Bharti Airtel holding 10.4% post merger, they note. Dialog's revenue meanwhile could rise 8% in 2024, with earnings likely to fall by less than 5% amid integration costs. Airtel Lanka is operating at a loss due to a lack of economies of scale, they say, adding that the enlarged Dialog entity could deliver Ebitda contributions to Axiata. UOB KH keeps a hold call on Axiata with a MYR2.50 target. Shares are 1.2% higher at MYR2.63. (yingxian.wong@wsj.com)
0159 GMT - Chinese shares open mixed, with energy and lithium stocks leading losses. Tianqi Lithium shares fall by the 10% daily limit after the company guided for a wider net loss in 1Q and received a warning letter from the Shenzhen stock exchange. Ganfeng Lithium is down 6.5%. Eve Energy falls 2.1%. Among the top gainers, Ningbo Tuopu is up 6.3% and Huaneng Power rises 5.5%. Investors are watching for the coming Beijing Auto Show starting Thursday, which may boost stock prices of companies along the EV supply chain. The benchmark Shanghai Composite Index is 0.1% higher at 3032.20. The Shenzhen Composite Index drops 0.2% and the ChiNext Price Index is down 0.3%. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0144 GMT - Hong Kong's benchmark Hang Seng Index rises 1.0% to 16993.15, tracking Wall Street gains overnight. Among advancers on the benchmark index, Li Ning is up 3.9%, Lenovo Group is 2.9% higher and China Hongqiao Group adds 3.7%. Meanwhile, Sunny Optical Technology is down 4.0% and Li Auto falls 2.1%. Huaneng Power International is up 7.5% after it announced higher net profit. The Hang Seng Tech Index is up 1.2% at 3490.52.(amanda.lee@wsj.com)
0117 GMT - Press Metal Aluminium could still benefit from likely higher aluminum prices, given expectations for demand recovery and structural supply tightness, UOB KayHian analysts Ku Wei Xiang and Desmond Chong say in a note. They reckon Press Metal could see stronger 1Q core earnings, driven by higher aluminum prices and stronger associate's contribution. They tip 1Q core earnings at MYR332 million-MYR399 million, 0%-21% higher sequentially and 17%-40% higher on year. They expect Press Metal 2024's core earnings to be 34%-49% stronger at MYR1.65 billion-MYR1.83 billion amid likely higher aluminum prices and a better cost structure. UOB KH raises Press Metal's target price to MYR6.72 from MYR5.50, while maintaining a buy rating on the stock. Shares are 0.2% lower at MYR5.37. (yingxian.wong@wsj.com)
0113 GMT - The FTSE Straits Times Index rises 0.6% to 3294.84 in early trade. The main theme has been risk-on as Wall Street advanced for a second straight session on Tuesday, Commerzbank Research analysts say in a research report, noting Treasury yields fell and the USD was weaker. Among the best performers on Singapore's benchmark index, CapitaLand Investment rises 2.3%, DFI Retail Group adds 2.2%, and CapitaLand Integrated Commercial Trust is up 2.1%. Mapletree Pan Asia Commercial Trust gains 2.4% after reporting its 4Q net property income rose 3.2% on year. (ronnie.harui@wsj.com)
0106 GMT - Malaysia's benchmark Kuala Lumpur Composite Index is 0.5% higher at 1569.51, tracking Wall Street's overnight gains. The local bourse may maintain its upward momentum given external markets are stabilizing, as investors analyze U.S. tech giants earnings as well as economic data to gauge the strength of global economic recovery, TASecurities analyst Stephen Soo says in a note. Soo pegs the KLCI's support at 1544 and resistance at 1580. Among gainers, CIMB Group adds 1.6% and Axiata Group is 1.9% higher. Meanwhile, QL Resources is down 0.2% and Kossan Rubber Industries is 0.5% lower. (yingxian.wong@wsj.com)
0011 GMT - Japanese stocks are higher in early trade, led by gains in electronics stocks, as hopes continue for earnings growth and concerns recede about a further escalation in tensions in the Middle East. Tokyo Electron Ltd. is up 3.3% and Sony Group is 2.4% higher. USD/JPY is at 154.78 compared with 154.76 as of Tuesday's Tokyo stock market close. Earnings are in focus, with Canon and Fanuc scheduled to report their results later in the day. The Nikkei Stock Average is up 1.3% at 38030.78. (kosaku.narioka@wsj.com; @kosakunarioka)
2348 GMT - Japanese stocks may rise as hopes continue for earnings growth and concerns recede about a further escalation in tensions in the Middle East. Nikkei futures are up 1.1% at 37970 on the SGX. USD/JPY is at 154.75 compared with 154.76 as of Tuesday's Tokyo stock market close. Earnings are in focus, with Canon and Fanuc scheduled to report their results later in the day. Kicking off Japan's earnings season on Tuesday, Nidec projected that net profit in the current fiscal year that began in April would increase 32%. The Nikkei Stock Average rose 0.3% to 37552.16 on Tuesday. (kosaku.narioka@wsj.com)
2345 GMT - Select Harvests' recent business update points to softer production and pricing outcomes in line or below Bell Potter's previous expectations, its analyst Jonathan Snape says in a note. BP lowers its Ebitda forecasts by 18% for FY 2024, 6% for FY 2025 and 5% for FY 2026, adding that it's "cognizant" of the potential development of a La Nina weather pattern during 2024. "Historically this dynamic has not resulted in a favorable yield outcome for almond producers in Australia," BP says. It cuts the stock's target by 13% to A$4.10 and maintains its hold rating. Select Harvests was last down 9.5% to A$3.70. (alice.uribe@wsj.com)
(END) Dow Jones Newswires
April 23, 2024 22:44 ET (02:44 GMT)
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