The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0718 GMT - OUE Real Estate Investment Trust's majority ownership of a prime freehold Sydney central business district asset could be a strategic benefit, says DBS Group Research's Tabitha Foo in a note. OUE REIT plans to acquire a 50% stake in Salesforce Tower Sydney, raising its interest to nearly 70%, she says. The analyst notes the central business district in the Australian city has favorable supply-demand dynamics that underpin its long-term prospects. While the deal could raise OUE REIT's gearing to over 45%, this should be a transitional concern as the REIT is likely to sell a Singapore office asset, which could bring down its gearing to mid-30%, she adds. DBS maintains its buy rating and 40 Singapore cent target price. Units are flat at S$0.345. (megan.cheah@wsj.com)
0648 GMT - Meituan's recovery trajectory is likely to remain intact, although it could be slower than previously anticipated, says Fitch Ratings in a note. The ratings company expects Meituan's Ebitda to remain under pressure in 2026, while the Chinese delivery platform's free cash flow is likely to only turn positive in 2027. This is due to intense competition in the country's food delivery sector, with high subsidy spending weakening near-term earnings visibility. Fitch reckons Meituan's leading market position in China's local-services sector and efficiency edge against its competitors should support its recovery once competition normalizes. Shares are up 4.4% at 74.80 Hong Kong dollars.(megan.cheah@wsj.com)
0639 GMT - CapitaLand China Trust's sustained distribution-per-unit recovery would likely depend on its rental rates stabilizing, particularly in its business-park segment, says DBS Group Research's Tabitha Foo in a note. The real-estate investment trust's business-park segment continues to face headwinds, with the rates for renewed leases falling 13% in the nine months ended September. While the REIT's earnings are likely to be cushioned by lower financing costs, the analyst believes clearer evidence of stronger rental pricing power would be needed before CapitaLand China's outlook improves. DBS maintains its hold rating and 65 Singapore cent target price. Units are flat at S$0.61. (megan.cheah@wsj.com)
0615 GMT - The economies and markets of the Gulf Co-operation Council can no longer be considered separate and its members must move toward economic integration, GCC's Secretary General Jasem Mohamed Albudaiwi says during a speech. He stresses the need for greater interdependence between the Gulf states, particularly in the realms of a common market, a unified payment system and linking infrastructure such as rail networks between the states. The secretary general outlines plans to increase foreign direct investment between GCC states from the existing $792 billion level at the 2026 World Investment Forum in Doha.(joseph.wilkins@wsj.com)
0607 GMT - Tasly Pharmaceutical's sales face pressure from tighter hospital controls on traditional Chinese medicine injections and weaker demand for cold medicines, Citi analysts say in a note. The bank cuts its revenue estimates by 4% for 2026 and 6% each for 2027 and 2028, and its EPS estimates by 3% for this year and 8% for 2027-28. It also cuts the stock's target price to 16.50 yuan from 18.00 yuan, citing weak sales and certain impairment costs. Citi, however, keeps its buy rating, citing pipeline progress, including the ramp-up of its stroke drug Puyouke and new product launches. Shares are up 0.9% at 13.91 yuan. (venkat.pr@wsj.com)
0517 GMT - China International Marine Containers is likely to see a mildly positive impact from Brazil's election, with President Luiz Inacio Lula da Silva remaining in office, Citi analyst Andy Li says in a note. Li cites continuity in policy, management at state-run oil company Petrobras and diplomatic relations. Li expects CIMC to explore further opportunities in regions outside Brazil. Citi has a buy rating on the H shares with a target price of 12.3 Hong Kong dollars. Shares are up 3.05% at HK$6.93. (venkat.pr@wsj.com)
0515 GMT - Self-reliance in technology will remain China's top priority in the 2027 policy, says Barclays economists in a note. The macro stability will play a supporting role and financing will increasingly be directed toward strategic technology sectors, they say. This also implies less emphasis on headline GDP growth and greater tolerance for near-term growth fluctuations instead of pursing growth at all costs, they add. That said, Barclays expects a slowdown below 4% for GDP growth could test that tolerance and prompt stronger policy support next year. Investors will be watching for the year-end Central Economic Work Conference for signals on the 2027 policy outlook.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0506 GMT - Singapore-listed plantation stocks under OCBC's coverage could potentially face regulatory and reputational overhang, analyst Ada Lim says, referring to the forest fires in Indonesia. Regional agribusinesses could face higher funding costs and steeper sustainability risk premiums in the long term, Lim adds, as Singaporean and Indonesian authorities could expand investigations into possible illegal land clearing and slash-and-burn practices. However, weather-related risks are expected to temper palm oil production growth and yields heading into 2027, Lim writes in a note. Against this backdrop, palm oil prices will likely remain well-supported. OCBC maintains hold ratings for Bumitama Agri, Wilmar International and Golden Agri-Resources.
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