The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
2200 ET - Copper prices are lower in early Asian trading amid profit-taking activities. Strong demand and supply side issues have sent prices to record highs, according to ANZ research analysts in a commentary. The metal has rallied more than 17% this year, they note. Demand in China is expected to pick up as the market enters a traditional peak season for manufacturing, the analysts say. The three-month LME copper contract is 0.5% lower at $14,637.00 a ton.(tracy.qu@wsj.com)
2146 ET - Indonesia Stock Exchange's recent plan to lower its minimum share price to 1 rupiah from 50 rupiah will likely enhance transparency and price discovery, Citi Research analysts say in a note. The change, which had been set to be implemented on Monday, has been delayed to later this month, they note. The move should also help Indonesia in the MSCI review due in November, says Citi, which expects the country to maintain its emerging-market status. MSCI previously warned that Indonesia could be downgraded to frontier-market status, citing transparency concerns. Citi continues to be cautiously positive on the Jakarta Composite Index and has an end-2026 target of 7250. The JCI last closed at 6686.44. (amanda.lee@wsj.com)
2138 ET - Idemitsu Kosan's earnings are likely to be supported by wider margins of export products, Jefferies analysts say in a report. Earlier this year, the Iran-related crude supply shock forced Japanese refiners like Idemitsu to slow operations and prioritize domestic supply. This headwind is now reversing as alternative crude procurement has restored utilization, the U.S. bank says. Idemitsu is likely to benefit from strong crude procurement and surplus export capacity, Jefferies says. A recovery in the Vietnam joint venture Nghi Son Refinery and Petrochemical is also a positive catalyst, the bank says. Jefferies raises its rating on Idemitsu to buy from hold and its target price to 2,200 yen from Y1,400. Shares are up 5.4% at Y1,626.5. (kosaku.narioka@wsj.com; @kosakunarioka)
2124 ET - SK Telecom's expanding artificial-intelligence data center business could support higher dividend payouts, say Hana Securities' Hong Seek Kim and Sanghun Lee. The analysts expect revenue from the South Korean telco's AIDCs could surge 10-fold to 5 trillion won by 2032, assuming capacity will jump to 1.5 gigawatts by then from 140 megawatts currently. The AIDC business could add about one trillion won to operating profit by 2032, potentially allowing the company to increase its dividend payouts by roughly 500 billion won, or up 67% from current levels, they add. Hana keeps a buy rating and 140,000-won target price for the stock. Shares are 1.0% lower at 91,500 won. (kwanwoo.jun@wsj.com)
2123 ET - Crude palm oil futures prices are higher than spot prices, with the market pricing in tighter supply and higher CPO prices in 2027, Maybank analyst Ong Chee Ting says in a note. This reflects expectations of seasonally lower 1H 2027 output, which could be further weakened by the lagged impact of El Nino, especially in Indonesia, he says. Malaysia-based planters should be safer bets as Indonesia is likely to bear the brunt of El Nino, he says. Ong retains his three-month positive view on the Southeast Asian plantations sector, although near-term price upside may be capped by competing oils trading near parity with CPO, demand rationing and potential delays to Indonesia's B50 mandate. Maybank pegs Kuala Lumpur Kepong, Sarawak Oil Palms and Genting Plantations as its top buys. (yingxian.wong@wsj.com)
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.
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