Global Equities Roundup: Market Talk

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0621 GMT - The Shanghai Composite Index briefly slips below the key level of 2700 amid volatility as markets continue to digest China's August economic data released Saturday following a holiday. Several brokerages have cut their 2024 GDP growth forecasts for China after the monthly data release. The Shanghai Composite Index is last 0.3% higher at 2712.04, the Shenzhen Composite Index is 0.4% lower and the ChiNext Price Index rises 0.2%. Liquor stocks lead declines, with Kweichow Moutai declining 2.4% and Wuliangye Yibin 1.3% lower. Among gainers, Ningbo Deye Technology rises 4.0% and Fuyao Glass is up 4.7%. (tracy.qu@wsj.com)

0616 GMT - Australia's S&P/ASX 200 rose less than 0.1% to 8142.1, inching to a third consecutive record high following a session spent bouncing between narrow gains and losses. The U.S. Federal Reserve is widely expected to cut interest rates following its two-day meeting this week and traders are waiting to find out by how much. Seemingly reflecting the uncertainty, the ASX 200 benchmark index traded in a narrow range of less than 40 points all through Wednesday's session and finished just 1.2 points higher. Gains among financial, utility and energy stocks were eroded by weakness in iron-ore miners. Fortescue, BHP and Rio Tinto lost between 0.3% and 0.9%. Banks Commonwealth, Westpac and NAB added between 0.2% and 1.4%. (stuart.condie@wsj.com)

0615 GMT - Sembcorp Industries' proposal to acquire Engie Global Developments' 30% stake in Senoko Energy could help raise its market share, CGS International analysts write in a note. Based on data by Singapore's Energy Market Authority, Senoko's Singapore market share by power generation stood at 15.4% versus Sembcorp's 10.2%, they note, adding that a successful acquisition could bring Sembcorp's market share to 25%. According to Sembcorp, the acquisition is expected to be accretive to its FY 2024 earnings, the analysts note. CGS International sees Sembcorp as a defensive pick given its earnings visibility, with 97% of its gas portfolio contracted as of end-1H. It maintains an add rating and target price of S$7.32 on the stock, which is last at S$5.29.(amanda.lee@wsj.com)

0606 GMT - Nordic markets are expected to open slightly lower, with IG calling the OMXS30 down 0.2% at around 2551. After initially hitting a new all-time high, the S&P 500 fell back toward the end of the day and closed virtually unchanged, while the more tech-heavy Nasdaq recovered slightly from Monday's fall, SEB analysts say in a note. Markets are in for a long wait today, with the Federal Reserve rate call due after European stock markets close. "We are leaning towards a smaller cut of 25 basis points, but since the end of last week, according to market pricing, the probability of a cut of 50 basis points is greater." Asian stock markets are mixed, while Hong Kong and South Korea are closed for holidays. Stock market futures this morning indicate a slightly positive opening in the U.S. but sideways trade in Europe, SEB adds. OMXS30 closed at 2555.90, OMXN40 at 2835.63 and OBX at 1314.01. (dominic.chopping@wsj.com)

0546 GMT - AEON Thana Sinsap (Thailand)'s asset quality may improve in 2H FY 2024 on a likely better economic outlook for Thailand, UOB Kay Hian analyst Thanawat Thangchadakorn says in a research report. The consumer finance company is expected to relax some restrictions on lending in 2H after the Thai government's stimulus leads to higher spending and repayment, the analyst says. The brokerage raises its earnings forecasts for the company by 3.2% for FY 2024, 1.1% for FY 2025, and 0.6% for FY 2026 to reflect the better macroeconomic outlook in tandem with the new government. It also lifts the stock's target price to THB150.00 from THB148.00 with an unchanged hold rating. Shares are 0.7% lower at THB140.00. (ronnie.harui@wsj.com)

0527 GMT - New Zealand's NZX-50 closed 0.7% lower at 12586.98 as shares of utility providers contributed to a third consecutive loss. The benchmark index fell at the start of Wednesday's session and never recovered, finishing at a session low. Shares of Meridian Energy and Mercury NZ, the country's two largest power companies by market capitalization, lost 1.1% and 1.2%, respectively. Contact Energy slipped 0.1% and Manawa Energy shed 0.4%. Real-estate operators Argosy, Fletcher Building, Property for Industry, Stride and Kiwi Property also lost ground, retreating by between 0.45% and 3.2%. The NZX-50 is 1.9% lower so far this week. (stuart.condie@wsj.com)

0513 GMT - Bangkok Dusit Medical Services' 3Q revenues are likely to rise 10% on year, thanks to decent revenue growth from Thailand and foreign patient flows, CGS International analyst Kasem Prunratanamala says in a research report. With 3Q typically the peak season for Thai hospitals, the hospital network operator's gross margin is expected to increase to 35.5% in 3Q from 32.5% in 2Q, the analyst estimates. Despite recent share sales by the company's major shareholders, the stock remains attractive and BDMS is a key beneficiary of medical tourism to Thailand, the analyst adds. The brokerage raises the stock's target price to THB35.75 from THB30.00 with an unchanged add rating. Shares are 1.7% higher at THB30.00. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

September 18, 2024 02:21 ET (06:21 GMT)

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