The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
2151 ET - Axiata's balance sheet could improve significantly if it divests its entire stake in its tower unit Edotco, Maybank IB analyst Tan Chi Wei says in a note. He says the sale could sharply reduce debt with proceeds likely to be used to repay borrowings, helping offset earnings loss from the disposal through lower interest costs. Tan continues to view the stock's risk-reward positively, with net profit recovery and balance sheet repair seen as potential catalysts for a re-rating. Maybank maintains a buy rating and target price at 2.90 ringgit. Shares are up 1.5% at 2.09 ringgit. (yingxian.wong@wsj.com)
2142 ET - Brent crude is expected to trade in a softer range of $70-$85 a barrel in 2H, assuming the U.S.-Iran interim agreement holds, the Strait of Hormuz continues to remain open and no major conflict resumes, Public Investment Bank analyst Khairul Fahmi says in a note. He doesn't expect prices to return to prewar lows, as tanker traffic is normalizing gradually, some energy facilities still require repairs and inventories need to be rebuilt after recent drawdowns. Public IB maintains its overweight rating on Malaysia's oil and gas sector, pegging Hibiscus Petroleum and Dialog as its top picks. (yingxian.wong@wsj.com)
2109 ET - Malaysia's technology sector could see further earnings growth and positive estimate revisions, Hong Leong IB analysts Toh Woo Kim and Sam Jun Kit say in a note. Their four key investment themes are expected to gain momentum into 2H. These are a recovery in analog chips, stronger semiconductor equipment demand, tight optical connectivity supply amid high demand, and improving Intel-related demand. They prefer companies where earnings growth can outpace valuation expansion. Hong Leong maintains an overweight rating on the Malaysian technology sector, citing a broadening semiconductor upcycle and sustained earnings momentum, pegging UWC, Inari Amertron, Unisem (M) and Itmax System as its top picks. (yingxian.wong@wsj.com)
2102 ET - Malaysia's banks could see a softer loan growth trend in 2H due to weaker uptake by the property and construction sectors, CIMB Securities analyst Ei Leen Tan says in a note. Higher construction and financing costs and external uncertainties are weighing on these sectors, prompting developers to stay selective on new launches and limiting growth in property loans, she says. Tan maintains her 2026 loan growth forecast at 4.8% despite May's stronger-than-expected 6.0% expansion. However, banks' strong balance sheets, ample capital and liquidity, and healthy loan-loss buffers may help mitigate the risks, she adds. CIMB maintains an overweight rating on Malaysia's banking sector, and pegs Public Bank, RHB Bank and Hong Leong Bank as top picks.(yingxian.wong@wsj.com)
2050 ET - Golden Horse Minerals could be a candidate to help fill the processing plant at the Edna May gold mine that Forrestania Resources is acquiring from Ramelius Resources, suggests Euroz Hartleys. Edna May has been on care and maintenance since March last year. It prompts analyst Michael Scantlebury to ask how Forrestania will fill Edna May's processing plant, which has an annual capacity of 2.9 million tons of ore. Euroz Hartleys says Golden Horse Minerals' Hopes Hill deposit looks to be around 1 million oz, citing a grade of 1.5 grams of gold per ton of ore. This "could support seven years of mine life at Edna May, producing more than 100,000 oz per annum at 1.2g/ton (applying dilution) and 90% recoveries," says Euroz Hartleys, which rates Golden Horse Minerals a speculative buy. (david.winning@wsj.com; @dwinningWSJ)
2044 ET - One thing to watch in Woodside Energy's 2Q production report: the extent of decline at the Sangomar oil field in Senegal. Macquarie says this could be the first quarter of material output falls at the asset. It is expecting quarterly production of 85,000 barrels of crude oil per day at Sangomar. That would be lower than the 99,000 barrels per day achieved in 1Q. At group level, Woodside likely produced 40.1 million barrels of oil equivalent in 2Q with revenue of US$3.67 billion, Macquarie says. It has a neutral call and A$30.00/share price target on Woodside, which is down 1.7% at A$27.93.(david.winning@wsj.com; @dwinningWSJ)
2021 ET - The Nikkei Stock Average fell 1.8% to 69202.93 on possible profit-taking following three straight sessions of gains on the benchmark index. Domestic technology shares were also weighed by Wednesday's pullback in shares of chip makers on the Nasdaq Composite. The main theme has been a rotation out of semiconductor stocks, as investors took profits following the sector's exceptional 1H rally, Commerzbank Research analysts say in a research report. Among worst performers on the Nikkei, Ibiden dropped 5.9%, JX Advanced Metals fell 5.7%, and Disco Corp. shed 5.3%. The dollar is at 162.51 yen versus Y162.60 late Wednesday in New York. (ronnie.harui@wsj.com)
2021 ET - EQT's takeover proposal for Perpetual should support the Australian investment manager's share price even if it doesn't lead to an eventual deal, Citi analyst Nigel Pittaway suggests. He acknowledges that EQT has a checkered history of completing deals in Australia and isn't confident that it or any of its the private-equity peers will make an enhanced offer, but tells clients in a note that the approach validates Perpetual. This alone is likely to provide some near-term support for the ASX-listed stock, Pittaway says. Citi has a neutral rating and a target price of 17.00 Australian dollars on the stock, which is down 0.6% at A$17.99. (stuart.condie@wsj.com)
1954 ET - Australian slot-machine maker Aristocrat Leisure is viewed at Macquarie as an incumbent likely to benefit from artificial intelligence. A note from one of the investment bank's analysts sees significant boosts including to creativity, product-development speed, and data analytics. The note says the latter is supported by Aristocrat's recent acquisition of Gaming Analytics, allowing it to access anonymized player session data. This should give it a competitive advantage in game development, the note adds. Furthermore, the analyst views Aristocrat as having a wide moat against disruption and as being potentially due for a re-rating on improved investor sentiment. Macquarie keeps an outperform rating on the stock and lifts its target price by 8.3% to 65.00 Australian dollars. Shares are at A$59.98 ahead of the open. (stuart.condie@wsj.com)
1939 ET - Japanese stocks may fall on possible profit-taking following three straight sessions of gains on the benchmark index. Domestic technology names may also be weighed by Wednesday's pullback in shares of chip makers on the Nasdaq Composite. Nikkei futures opened 965 points lower at 69700 on the SGX. The dollar is at 162.55 yen versus Y162.60 late Wednesday in New York. The Nikkei Stock Average closed 0.6% higher at 70474.96 on Wednesday. (ronnie.harui@wsj.com)
1937 ET - Australian stocks could be on course for a third straight fall following a weak lead from U.S. equities. Local stock futures are down by 0.3% ahead of Thursday's session, suggesting that the S&P/ASX 200 will keep falling after retreating 1.1% across the past two sessions. The benchmark index is coming off a 0.6% slip and is down by 0.4% so far this week. In the U.S., the DJIA was broadly flat, but the S&P 500 slipped 0.2% and the Nasdaq Composite lost 0.7%. Ahead of the open, gold miner Northern Star Resources said it had picked the head of Glencore's nickel and zinc industrial assets to be its next chief executive. (stuart.condie@wsj.com)
Lessons from the stifling of energy shipments through the Strait of Hormuz are likely to drive M&A activity in the oil and gas industry, says Macquarie. It expects producers of LNG to be particularly sought after. "Oil price normalization presents new opportunities for acquirers," Macquarie says. It notes Australia's Santos trades at a 14% discount to the mid-2025 offer from a consortium led by Abu Dhabi National Oil Co. unit XRG. "Any new approaches must be at a higher level now," Macquarie says. Santos is due to report 2Q metrics this month. Macquarie forecasts 2Q output of 23.7 million barrels of oil equivalent, slightly below consensus expectations for 24.3 million barrels. Quarterly revenue is projected to be US$1.55 billion. Santos ended Wednesday at A$7.19. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
July 01, 2026 21:51 ET (01:51 GMT)
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