The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0817 GMT - The Malaysian semiconductor sector is likely to continue a gradual earnings recovery driven by an expected rebound global demand, TA Securities analyst Chan Mun Chun writes in a note. Most local tech companies are likely to report a forex recovery in the upcoming quarter, attributed to the recent weakening of the ringgit against the dollar, the analyst notes. However, the analyst adds that any further protectionist policies introduced by U.S. President-elect Trump could create additional trade diversion opportunities for Malaysia under the "China Plus One" strategy. TA Securities maintains an overweight stance on Malaysia's semiconductor sector and reiterates its buy ratings for Inari Amertron, Unisem $(MIMI)$, Malaysian Pacific Industries and Elsoft Research.(amanda.lee@wsj.com)

0805 GMT - China Longyuan Power Group faces the risk of lower electricity rates in 2025 from more market-based sales and higher competition, though its shares are supported by an undemanding valuation at current levels, Citi analyst Pierre Lau says. He assumes a 4% drop in rates next year, but notes that the company may see an upside if it can collect on substantial subsidies building up in receivables. He says China Longyuan's 7.5x price-to-forward-earnings valuation looks inexpensive; PE ratios in 2022 and 2023 were 10.7x and 8.5x, respectively. Lau maintains a buy rating on the stock and a target price of HK$8.00. Shares are up 1.3% at HK$6.81, bringing year-to-date gains to 15%. (ben.otto@wsj.com; @benottoWSJ)

0731 GMT - The FTSE 100 is expected to open 10 points higher, or 0.1%, according to IG. The index closed down 40 points, or 0.5%, to 8308 points on Friday. Data on Monday showed Chinese inflation eased by more than expected to 0.2% year-on-year in November. That boosts expectations that the Chinese government will outline more fiscal support later this week at the Central Economic Work Conference, Swissquote Bank analyst Ipek Ozkardeskaya says in a note. However, the government seems unwilling to announce a massive fiscal stimulus package, she says. Meanwhile, investors are also looking ahead to U.S. inflation data on Wednesday and the European Central Bank's policy decision on Thursday.(renae.dyer@wsj.com)

0732 GMT - Chinese shares ended mostly lower, with the Shanghai Composite Index flat at 3402.53. The Shenzhen Composite Index fell 0.35% and the ChiNext Price Index ended 0.8% lower. China released November inflation data earlier Monday, which showed continued demand weakness. Tech hardware stocks led declines, with SMIC 2.4% lower and Luxshare Precision Industry dropping 0.8%. Gainers included iFlytek, which was 1.7% higher, and Midea, up 0.4%. CATL rose 0.6%. (tracy.qu@wsj.com)

0728 GMT - Dhanuka Agritech's new products are likely to spur margin expansion, Axis Securities' Neeraj Chadawar says in a research report. Management has revised FY 2025 margin guidance to a 100bp improvement from a 100bp decline previously, supported by strong market response to launches of new products. Management also remains optimistic about delivering healthy growth in FY 2025, driven by a favorable product mix, stable prices and a strong season for Rabi crops, the head of research notes. The brokerage recommends the Indian agro-chemical manufacturer's stock as its pick of the week. It has a buy rating and a target price of INR1,760.00 on the shares, which are last 0.3% higher at INR1,603.85. (ronnie.harui@wsj.com)

0719 GMT - Nordic markets are seen opening little changed, with IG calling the OMXS30 flat at around 2614.27. The S&P 500 and Nasdaq closed at fresh all-time highs Friday. The bullish stock market mood is buoyed by underlying strength in the U.S. economy, expectations for a Fed rate cut next week and hopes of a strong business, growth and U.S.-oriented policy from the new White House administration, SEB analysts say in a note. Political experts were taken by surprise this weekend by the rapid, unexpected and very dramatic fall of the Assad regime in Syria, but the developments don't appear to have a major impact on Asian markets, SEB adds. U.S. and European stock market futures are pointing slightly upwards. OMXS30 closed at 2614.27, OMXN40 at 2700.93 and OBX at 1355.56. (dominic.chopping@wsj.com)

0658 GMT - YTL Power International's recent share price retracement is likely to be seen as a buying opportunity, Kenanga IB analyst Teh Kian Yeong writes in a note. However, the primary focus remains on the electric utility company's data center delivery over the next 12 months, which is critical to its earnings performance, the analyst adds. Kenanga IB continues to favor the company for its longer-term growth potential, supported by its data center and digital banking ventures. The brokerage maintains an outperform rating on the stock with a target price of MYR5.00 and a potential blue-sky fair value of MYR6.53. Shares are trading at MYR3.59. (amanda.lee@wsj.com)

0654 GMT - South Korea's benchmark Kospi fell 2.8% to close at 2,360.58, marking its fourth consecutive session of losses. Continued political instability weighed on investor sentiment, with retail investors remaining net sellers. President Yoon narrowly avoided impeachment over the weekend following his botched martial-law decree. However, mounting pressure for his resignation has prompted opposition parties to pledge continued efforts for his ouster. Index heavyweight Samsung Electronics dropped 1.3%. Guided missile maker LIG Nex1 plunged 9.4%, leading a broad selloff among defense stocks. USD/KRW rose 1.3% to settle at 1,437.00 in Seoul's onshore trading, and South Korea's 10-year government bond yield edged down 0.5 bps to 2.739%. (kwanwoo.jun@wsj.com)

0641 GMT - The Malaysian property sector is likely to sustain investor interest in 2025 on data-center investments, land sales and potential listings, Maybank IB analyst Wong Wei Sum says in a note. Developments related to the Johor-Singapore Special Economic Zone may also be another driver for the sector, Wong says. However, Maybank IB downgrades Malaysia's property sector to neutral from positive, as it believes that most of the sector's drivers have been in play for sometime now and there are no new themes currently emerging. Maybank IB's top picks are SP Setia and Sime Darby Property. (amanda.lee@wsj.com)

0628 GMT - Sartorius's new CEO seems to have relevant experience and be a good fit for the company, RBC Capital Markets analyst Charles Weston writes in a research note. However, his appointment is unlikely to address the perception of a poor communication and guidance track record, he says. The German pharmaceutical and laboratory equipment supplier said Michael Grosse will become CEO on July 1, 2025. He will replace Joachim Kreuzburg, who said earlier that he wouldn't seek an extension of his contract ended in November. Grosse served as chairman and CEO of German packaging company Syntegon Technology between 2020 and 2023. Since Syntegon has experienced significantly lower growth and lower margins than Sartorius, it will be important for Grosse to demonstrate an ambitious mindset, the analyst says. Shares closed at 212.50 euros on Friday. (andrea.figueras@wsj.com)

0552 GMT - Oiltek International is well-positioned to benefit from rising palm-oil production in Indonesia and Malaysia, Lim & Tan Securities' analyst Nicholas Yon writes in a research report. This growth is largely driven by government mandates for higher biodiesel blends, and the company addresses this demand with its patented technologies and innovative solutions, the analyst notes. Additionally, a key growth driver for the vegetable and edible oil process engineering company is the production of sustainable aviation fuel, which is gaining traction amid global efforts to achieve net-zero emissions by 2050, the analyst adds. The brokerage initiates coverage of the stock with a buy rating and a target price of S$1.21. Shares are up 2.6% at S$0.985. (ronnie.harui@wsj.com)

0512 GMT - Ch. Karnchang appears poised for share gains, supported by a record backlog that should sustain construction revenue for more than five years, Maybank analyst Surachai Pramualcharoenkit writes in a research note. He projects profit could reach a record THB2.7 billion in 2026, supported by contributions from subsidiaries and dividend income. These tailwinds should enable the company to focus on bidding only for projects with high profit margins going forward, he adds, potentially capitalizing on select opportunities in major government projects expected over the next year. The analyst maintains a buy rating for the stock with a THB27.50 target price. Shares are 1.5% higher at THB19.80, trimming year-to-date losses to 4.8%. (ben.otto@wsj.com; @benottoWSJ)

(END) Dow Jones Newswires

December 09, 2024 03:17 ET (08:17 GMT)

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