The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0642 GMT - Tech stocks were back under pressure last week, and financial markets are wondering if this is the beginning of a greater crash, says Thomas Mathews, head of markets in Asia for Capital Economics. His base case remains that it isn't. Volatility in tech stocks should pick up as the AI bubble continues to inflate. Sharp and short-lived sell-offs were common as the dotcom bubble inflated, he adds. Still, that bubble did eventually burst, and this one will too, he says. But for now, the indicators of a bubble don't seem quite stretched enough to call time on the rally. (james.glynn@wsj.com; @JamesGlynnWSJ)
0641 GMT - Fears about the AI buildout are "way overblown," says Dan Ives, partner and analyst at Yorkville Ives, in a note. "We are in a market environment in which any negative data point or hint of nervousness causes panic for the tech sector as this multi-trillion AI foundation buildout is tied to a handful of major tech players," says Ives. Higher rates don't change underlying demand for the buildout, even though it does matter for debt and how the investment gets financed, Ives adds. U.S. stock futures show signs of recovering sentiment in Asian trade. Futures tied to the Nasdaq, Dow Jones Industrial Average and S&P 500 climb 1.4%, 0.4% and 0.7%, respectively. (kimberley.kao@wsj.com)
0621 GMT - Aboitiz Power likely offers earnings stability, Maybank Securities' Germaine Guinto says in a research report. The analyst says drivers are: 85% of its portfolio is contracted, growth from its electricity generation capacity expansion, and its dividend yield of around 5%. Aboitiz Power is a power company with stakes in three of the Philippines' key power suppliers, which play an essential role in meeting the country's electricity demand. The brokerage forecasts the Philippine company's net income to grow 10% in 2027 and 7% in 2028, partly supported by substantial capacity additions from 2026. It initiates coverage of the stock with a buy rating and a target price of 65.00 pesos. Shares are 1.3% higher at 46.10 pesos.(ronnie.harui@wsj.com)
0603 GMT - Unrest in France could have financial and fiscal repercussions, XTB research director Kathleen Brooks writes. Riots swept the eurozone's second-largest economy over the weekend. Some half a million protesters took to the streets, expressing anger at the high cost of living. The protests could widen the spread of French government bonds against German peers, and could also hit the euro, Brooks says. "If these riots boost support for the anti-EU Marine Le Pen, then we may see further declines for the single currency," she warns. (joshua.kirby@wsj.com; @joshualeokirby)
0551 GMT - Bangkok Dusit Medical Services' 3Q earnings and revenue likely marked new highs, says DBS Group Research's Sasikarn Udomvej in a note. The analyst expects the quarter's earnings to have risen to 4.6 billion baht, which should bring the company's nine-month earnings to 73% of DBS's forecast. Its revenue likely reached 29.3 billion baht, up 7% on year, likely supported by seasonal demand, increased respiratory cases and international patient growth, the analyst says. The Thai healthcare company's earnings could then further improve in 4Q, given Cambodian patient recovery and better operating leverage, the analyst adds. DBS maintains its buy rating and 23.00 baht target price. Shares trade flat at 19.10 baht. (megan.cheah@wsj.com)
0547 GMT - Suzuken's business growth prospects appear good, Nomura's Kyoichiro Shigemura says in a research report. Drivers include expected stable margins and increase in exclusive distribution contracts for specialty pharmaceuticals in prescription pharmaceuticals wholesaling operations, the analyst says. Others are expansion in digital services and linkage between manufacturer distribution and wholesale distribution. Nomura likes the Japanese pharmaceutical wholesaler's approach to anticipating investor expectations by undertaking reform in wholesaling business, formulating strategies to boost return on equity, and enhancing shareholder returns. The brokerage upgrades the stock's rating to buy from neutral and raises its target price to 3,550 yen from 2,785 yen. Shares are 2.8% higher at 2,778.5 yen. (ronnie.harui@wsj.com)
0541 GMT - Lotte Chemical could post a wider-than-expected 3Q operating loss, Hana Securities' Yoon Jae-sung says. The lagged effects of lower product prices and the won's appreciation likely weighed on the South Korean company's earnings in the July-September quarter, the analyst says. Yoon expects Lotte to post an operating loss of 223.4 billion won in 3Q, wider than the consensus estimate of a 163.2 billion won loss. The loss could narrow in 4Q as product prices rise, but the earnings improvement could be limited by the won's appreciation, he adds. Hana downgrades the stock to neutral from buy and lowers its target price to 60,000 won from 80,000 won. Shares are 4.2% higher at 56,900 won. (kwanwoo.jun@wsj.com)
0533 GMT - Southeast Asian plantation sector prospects are likely to remain subdued in the absence of near-term catalysts for crude palm oil prices amid concerns over transboundary haze, says Maybank analyst Ong Chee Ting in a note. Malaysian planters could be preferred amid a lack of details about Indonesia's new agrarian reform law, but elevated palm oil inventories in Malaysia may limit price gains, he says. Also, while El Nino could reduce output in 2027, its impact may be offset by higher operating costs and taxes, especially for Indonesian producers, he reckons. Maybank maintains a neutral rating on the Southeast Asian plantation sector, and pegs SD Guthrie, Sarawak Oil Palms and Genting Plantations as top buys. (yingxian.wong@wsj.com)
0518 GMT - CP All's sharp fall from this year's peak share price looks overdone, ttb wealth securities' Pattadol Bunnak says in a research report. Bad news about subsidiary CP Axtra's weak earnings has been reflected in CP All's share price, the analyst says. The Thai conglomerate's estimated 11x 2027 price-to-earnings ratio also appears to be a bargain, partly given its solid 7-Eleven business, the analyst adds. However, the brokerage cuts its earnings forecasts for CP All by 5% for 2026, 4% for 2027, and 5% for 2028 to reflect CP Axtra's weak earnings. It lowers CP All's share target price to 60.00 baht from 62.00 baht while maintaining the buy rating. Shares are unchanged at 43.50 baht. (ronnie.harui@wsj.com)
0509 GMT - Press Metal Aluminium's recent sell-off may offer an attractive opportunity to accumulate shares, as its long-term outlook remains intact despite near-term cost pressures, RHB IB analyst Iftaar Hakim Rusli says in a note. However, further share-price declines remain possible if aluminum prices weaken, he says. Press Metal's 80%-owned Indonesian alumina refinery is expected to begin commissioning in 2Q 2027, with its expansion potentially bringing alumina self-sufficiency to nearly 100% and boosting smelting margins, he adds. The analyst cuts Press Metal's 2026-2028 earnings estimates by 4%-5% to factor in higher carbon anode costs. RHB cuts Press Metal's target price to 9.30 ringgit from 9.80 ringgit, while maintaining a buy rating on the stock. Shares are 2.6% higher at 6.67 ringgit.
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