The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
2107 ET - Soon Hock Enterprise's development pipeline could provide revenue visibility through 2029, says UOB Kay Hian's Shaina Kamlesh Mahtani in a note. Piling works for a development in Singapore are likely to commence soon, with the final temporary occupation permit targeted to be received by 2027, the analyst says. Another site's final permit is expected by 1Q 2029, while other redevelopments are in their final design stage.Soon Hock's healthy balance sheet also supports its staggered development pipeline and dividends, the analyst adds. Still, UOB KH cuts its target price to 66 Singapore cents from S$0.71 to reflect lower peer valuations. The brokerage maintains its buy rating. Shares were last at S$0.595. (megan.cheah@wsj.com)
2024 ET - Amplitude Energy's intersection of natural gas with its Juliet-1 exploration well should spark relief among investors given two earlier setbacks in its drilling campaign, says Jarden. Its target price rises by 9.7% to 2.03 Australian dollars a share to capture 50% of its unrisked valuation for Juliet of A$0.36/share. Previously, Jarden had a zero risk weighting given negative results from the earlier Elanora and Isabella prospects. "While some boxes remain to be ticked before we can call Juliet a gas discovery, all data released to date points to a positive outcome," analyst Nik Burns says. Amplitude's drilling campaign aims to find natural gas to support its East Coast Supply Project in southeastern Australia. Jarden rates the stock at overweight; the stock is up 1.1% at A$1.89 Wednesday, and up some 14% so far this week. (david.winning@wsj.com; @dwinningWSJ)
2018 ET - Japanese stocks edge higher in early trade due to bargain hunting despite uncertainty over the Middle East conflict. Chip-related stocks are leading the gains. SoftBank Group is up 3.0%, Lasertec is up 6.6%, and Kokusai Electric is 5.8% higher. The dollar is at 153.34 yen, compared with Y153.74 as of Tuesday's Tokyo stock market close. Investors are closely watching developments in the Iran war and crude oil prices after the U.S. launched new attacks on Iranian oil tankers on Tuesday. The Nikkei Stock Average is up 0.1% at 65336.26. (kosaku.narioka@wsj.com; @kosakunarioka)
1943 ET - Japanese stocks may decline as concerns about the Middle East conflict and higher energy costs resurface. Nikkei futures are down 0.6% at 65050 on the SGX. The dollar is at 153.61 yen, compared with Y153.74 as of Tuesday's Tokyo stock market close. Investors are focusing on developments in the Iran war and crude oil prices after the U.S. launched new attacks on Iranian oil tankers on Tuesday. The Nikkei Stock Average fell 1.7% to 65269.33 on Tuesday. (kosaku.narioka@wsj.com)
1931 ET - Australian stocks are set to open higher, with ASX futures up by 0.2% ahead of Wednesday's session. That follows a weak session on Wall Street where the DJIA fell by 1.2% as investors returned from the Labor Day break. Australia's benchmark S&P/ASX 200 already shed 1.0% Tuesday and will be balancing soft U.S. cues with gains in commodity prices. Oil futures rose by 1.7%, while copper hit new record highs and iron ore also climbed. Ahead of the open, Westgold Resources said it aims to raise annual gold output to roughly 500,000 oz before the end of this decade, while coal miner Coronado Global Resources revised its leadership structure to support its turnaround plans. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1930 ET - Macquarie now expects Australian house prices to fall 10% from their peak, and that's bad news for investors in retail banks betting on their share-price performance improving. Macquarie thinks the RBA will raise interest rates again this month. Other macro headwinds for banks include unemployment edging up and weak confidence. "Importantly, with low cost deposits now largely hedged, we think the direct impact of further hikes on banks has become negative, with further hikes weighing on credit growth and credit quality," says Macquarie. It stays "underweight" the sector, with ANZ and NAB its preferred exposures. (david.winning@wsj.com; @dwinningWSJ)
1919 ET - Almond grower Select Harvests's crop update disappoints its bull at Bell Potter. Select Harvests narrows a forecast for its 2026 crop size to 28,000-29,600 tons, representing a 1.0% reduction at the midpoint compared to prior guidance. Bell Potter says wet weather weighed on the harvest. Ebitda is set to be A$10 million-A$11 million lower than previous expectations, it says. "On the positive side cashflow looks stronger than expected and the company will exit with its lowest net debt position since 2020," analyst Jonathan Snape says. Bell Potter's FY26 EPS forecast falls 13% while its price target remains unchanged at A$6.05/share. Select Harvests ended Tuesday at A$5.04. (david.winning@wsj.com; @dwinningWSJ)
1857 ET - Australian mall owners have a structural advantage to withstand pressure on the consumer from rising interest rates, post-budget headwinds, and stress in the residential property market, contends Citi. It points to a 30-low in new supply meeting sustained population-driven demand. Analyst Howard Penny highlights record occupancy across the sector, positive leasing spreads, and limited evidence of tenants vacating. "In our view, these are not cyclical artefacts but structural conditions that should persist for at least 12-18 months given development pipeline lead times," Citi says. Charter Hall Retail REIT and Region's discounts to net tangible assets look difficult to justify, given the durability of underlying earnings. "Risks around discretionary spending and refinancing costs are well-understood and, in our view, broadly reflected in current pricing," says Citi. (david.winning@wsj.com; @dwinningWSJ)
1856 ET - Airbnb is likely to see a boost from both AI pricing and AI search features, Raymond James analysts say, upgrading the stock to "outperform." Airbnb data shows that using AI to adjust pricing improves earnings for hosts and the company, the analysts say. Listings with price updates at least four times a year had 30% more nights booked than those without, they say. The increased integration of AI search will also help customers look for more specific features, rather than just using keywords, like their destination location. The analysts expect this will improve customer experience and drive more engagement. (katherine.hamilton@wsj.com)
1839 ET - Echo IQ's shares are likely to be sold off today after the U.S. Food and Drug Administration didn't give clearance to its EchoSolv HF tool for detecting heart failure, says Petra Capital. The FDA issued a Not Substantially Equivalent determination. "This is a significant and relatively uncommon setback, although not necessarily terminal," analyst Tanushree Jain says. There are examples of companies ultimately gaining FDA clearance after addressing concerns. Still, it takes extended time and cost and carries elevated risk. "In Echo IQ's case we do not believe it will be a quick or a simple resolution either," says Petra Capital, downgrading the stock to "sell," from "hold." Echo IQ ended Tuesday at A$1.28. (david.winning@wsj.com; @dwinningWSJ)
1813 ET - The daily volume of crude that Asian refineries are expected to process during this year's last quarter could be reduced by 1.4 million barrels if the Middle East conflict lasts until year end, creating profit opportunities for those businesses, according to Wood Mackenzie. Ukraine's frequent drone attacks on Russian refineries, which trimmed 3.5 million barrels of their daily crude intake last month alone, is further limiting supply of petroleum fuels, the energy-focused consulting firm says. "The scale of disruption to global crude [refining] is without modern precedent," says Alan Gelder, a Wood Mackenzie's senior vice president. He adds, however, that refiners should seize the temporary opportunity to prepare for the future. "A lower oil price environment combined with approaching peak oil demand will quickly expose the gap between competitive and uncompetitive assets." (luis.garcia@wsj.com; @lhvgarcia)
1533 ET - Constellation Brands says off-premise beer sales remain lackluster. The beer company sees more opportunity to sell on premises like in bars and restaurants, where demand for beer is still high, Fink says at Barclays' consumer staples conference. However, industry data from August showed that people are not buying beer to take home with them. Fink says this is likely linked to rising gas prices. He says it is a matter of time to see whether macroeconomic pressures will have a long-term impact or will be a quicker cycle. "I think there are a lot of cyclical headwinds right now that will dissipate at some point, but time will tell," he says.
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