The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
0852 GMT - Lendlease Global Commercial REIT retains its bull at DBS Group Research thanks to its attractive valuations at around 0.8 times its price-to-book ratio and a distribution yield of around 7%, analyst Tabitha Foo says in a note. The real-estate investment trust has a portfolio of high-quality Singapore retail assets, which benefit from strong catchment areas, direct public train connectivity and resilient necessity-led spending, she says. Its earnings are likely to gain from the full-year contribution from an asset and progressive interest savings, she adds. DBS maintains its buy rating and target price of 65 Singapore cents. Units rise 0.9% to S$0.55. (megan.cheah@wsj.com)
0842 GMT - Hong Kong's advance 3Q GDP growth data is set to show slower growth, Moody's Analytics economists say. They tip growth at 3.5% on year from 4.3% in the June quarter. Foreign trade will likely be a bright spot as artificial intelligence-linked demand boosts exports and imports. "But domestically, a weakening labor market and slowing real retail sales growth point to restrained household consumption," the economists say. Hong Kong's economy has been on a recovery track largely due to the AI boost and recovering tourism arrivals, but sentiment remains fragile. The government projects FY growth at 3.5% to 4.5% versus 3.5% in 2025. The 3Q data is due Tuesday. (fabiana.negrinochoa@wsj.com)
0837 GMT - Indonesia's inflation momentum is expected to persist until 1H 2027, as stronger food price pressures emerge and are likely to intensify amid El Nino-related supply disruptions, RHB economist Wong Xian Yong says in a note. He maintains his 2026 headline inflation forecast at 3.2%, with food prices remaining the main upside risk. Higher oil prices and a weaker rupiah could also raise production and import costs, although government subsidies and price controls should limit the immediate impact, he says. Bank Indonesia is expected to keep its benchmark interest rate unchanged at 5.75% in November, but renewed rupiah weakness has increased the risk of an earlier rate hike, he adds. RHB expects one final 25 bps increase to 6.00% in December. (yingxian.wong@wsj.com)
0834 GMT - Puma's results strengthen confidence that its reset is progressing, although a sales rebound requires patience, AlphaValue's Jie Zhang says in a note. The arrival of Anta Sports as Puma's largest shareholder is encouraging and improves the company's strategic opportunity in China and Asia, the analyst says. A sustained rerating of the stock still calls for broader improved consumer demand and the company's clearer progress in Western markets, AlphaValue say. "The direction is encouraging, but proving a sustained turnaround will take time," the analyst adds. Shares are up 0.2%. (andrea.figueras@wsj.com)
0830 GMT - Reliance Industries keeps its bull at Nomura following stronger-than-expected 2Q earnings, driven by the standout performance of the Indian conglomerate's oil-to-chemicals business. Segment Ebitda was a record 252 billion rupees, up 68% on year and 48% on quarter--and 24% ahead of Nomura's estimates. "With cracks broadly stable quarter on quarter at multidecade highs...the sequential jump came from a lower crude basket cost, better margin capture and higher throughput," analysts Bineet Banka and Abhishek Bhandari write in a note. The segment's Ebitda margin rose 2.5 percentage points on quarter to 10.9%. Nomura raises its FY 2027 Ebitda forecast for Reliance by 2% and reiterates a buy rating. However, it lowers the stock's target price by 7.7% to 1,560 rupees due to a roll-forward adjustment. Shares rise 7.6% to 1,252 rupees. (farah.elias@wsj.com)
0828 GMT - NatWest still has sector-leading fundamentals despite warning of a flatter net interest margin in 2027, Barclays analyst Aman Rakkar writes. The lower net interest margin outlook for the British bank is disappointing, but Friday's 8.8% share price fall was overdone, especially given likely underlying estimate revisions, Rakkar says. The bank has strong fundamentals, including delivery of around 20% return on tangible equity, strong revenue growth and a double-digit cash return yield. The bank trading at an around 20% discount to European peers is "hard to justify," especially as the U.K.'s bank tax will now be lower than feared. Shares are up 0.3%. (michael.hennessey@wsj.com)
0822 GMT - European stock indexes are mostly lower at the open, as investors recalibrate after a strong week for the continent last week. Healthcare stocks lead fallers as the continent-wide Stoxx 600 drops 0.3%. London's FTSE 100 is 0.4% lower, dragged by falling oil majors and a 1.2% drop for AstraZeneca. The German DAX drops 0.2%, dragged by 1.8% fall for Bayer. In Paris, the CAC 40 loses 0.3% as luxuries weaken, with Gucci-owner Kering falling 1.9%. A positive open for banks help indexes in Italy and Spain, with the FTSE MIB and IBEX 35 up 0.15% and 0.5%, respectively. The Dutch AEX edges 0.1% lower. (josephmichael.stonor@wsj.com)
0821 GMT - Cnooc's H shares remain undervalued and offer a 2026 dividend yield above 6%, Morningstar's Chokwai Lee says in a note. The Chinese oil and gas producer recorded strong results for the first nine months of the year, supported by high oil prices, while its expansion strategy remains intact with a disciplined approach to overseas growth, Lee says. Net production was in line with expectations, and Cnooc remains cost competitive, Lee adds. Supply disruptions to energy is expected to continue into 2027, supporting elevated oil and gas prices in the near term, Lee says. Morningstar retains its fair-value estimate for A shares at 28.00 yuan but raises it to HK$33.00 from HK$32.00 for H shares, reflecting the Chinese yuan's appreciation. The H shares close at HK$24.52. (kimberley.kao@wsj.com)
0819 GMT - China Life Insurance's new business value growth in the nine months ended September remains a key bright spot despite the insurer's net profit missing estimates, says DBS Group Research's Ken Shih in a note. The insurer's new business value managed to maintain solid growth of around 13% on year despite the overall industry's decline, the analyst notes. The company is confident in its 2027 new business value growth outlook, citing the bancassurance channel's potential mid-to-long-term growth, he adds. Still, DBS cuts its 2026-2027 earnings projections by 20%-34% after the lower-than-expected net profit. The bank therefore trims its target price to 36.50 Hong Kong dollars from HK$38.00 but maintains a buy rating. Shares closed 3.85% higher at HK$24.80. (megan.cheah@wsj.com)
0815 GMT - European energy majors start the week lower after oil prices drop nearly 3%. Renewed diplomatic efforts to end the conflict between the U.S. and Iran have helped ease supply concerns. Brent crude futures for January delivery fall 2.85% to $110.23 a barrel, while U.S. West Texas Intermediate futures for December delivery drop 3.3% to $100.72 a barrel. This pulls BP down 2.4% and Shell 1.3% lower. Spain's Repsol falls 1.5% while France's TotalEnergies slides 1%. (adam.whittaker@wsj.com)
0810 GMT - Singapore investors have more riding on this week's U.S. midterms than most, with eToro data showing that at 60%, their U.S. stock holdings are well above the 43% global average, says analyst Zavier Wong. It's no surprise that more than half have already adjusted or plan to adjust their portfolios based on what they expect from the election, he adds. Buying more stocks is the most common move at 35%, while 32% are adding to cash. "The vote will mostly reach them through Treasury yields," Wong says. The Fed hiked in September and held last week, and the 10-year yield has been above 5%, so the market will read the result for what it means for spending and deficits. (fabiana.negrinochoa@wsj.com)
0808 GMT - Ryanair Holdings will take a margin hit from an increase in jet fuel prices, but the company can continue to prosper over the medium term thanks to its low cost base and strong balance sheet, Davy Research's Stephen Furlong and Ava Costello say in a research note. While its outlook is clouded by fuel, the Irish budget-carrier group could endure some short-term pain for the long-term gain, the analysts say. "If anything, the current dislocation in the market could make medium-term targets more achievable," they add. Shares rise 1.8%.
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