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

0308 GMT - The outlook for Malaysia's consumer sector may remain steady, with selective opportunities emerging, Kenanga IB analyst Thin Yun Jing says in a note. The sector could experience gradually improving momentum due to higher disposable incomes from wage hikes and increased tourism, she notes. Valuations for consumer staples like Fraser & Neave appear attractive, with margin stability offering potential upside, she adds. Despite ongoing cost pressures, Thin believes companies are mitigating the impacts throughproductivity optimisation and solar energy adoption. Kenanga maintains a neutral rating on the Malaysian consumer sector, pegging Fraser & Neave, Mr. D.I.Y. Group $(MIMI)$ and Karex Bhd as its top picks in the sector. (yingxian.wong@wsj.com)

0300 GMT - Concerns surrounding human metapneumovirus cases in China are unlikely to drive glove demand, as the outbreak resembles seasonal influenza and isn't a major health crisis, says MIDF Research analyst Martin Foo Chuan Loong. Malaysian glove makers aren't expected to benefit from the spread of HMPV due to China's self-sufficiency, he writes in a note. Steep U.S. tariffs on Chinese gloves starting in 2025 will reduce China's exports but are unlikely to significantly boost demand for Malaysian gloves unless a global pandemic emerges, he adds. MIDF maintains a neutral rating on Malaysia's glove sector, citing stretched valuations, but says that sentiment-driven price increases could be an opportunity to take profit. (yingxian.wong@wsj.com)

0245 GMT - Frasers Logistics & Commercial Trust is likely to acquire more logistics properties, according to the management, UOB Kay Hian's Jonathan Koh says in a research report. The REIT will focus on five core developed markets of Singapore, Australia, Germany, Netherlands and the U.K., the analyst notes. The REIT has completed acquisition of a prime logistics property in Singapore, which offers net property income yield of 6.6%. However, occupancy at the REIT's Alexandra Technopark could fall further in 1Q FY 2025, the analyst says. Although the REIT is working on backfilling vacant space there, competition from other business parks is tough. The brokerage maintains the REIT's buy rating but trims its distribution-per-unit forecast by 3% for FY 2025 and 8% for FY 2026. (ronnie.harui@wsj.com)

0213 GMT - Glencore, Anglo American, Teck, and Alcoa are Jefferies' top picks among mining stocks this year. While we have recently become more cautious on the near-term outlook for the sector due to cyclical factors, and we believe the risk to consensus estimates is to the downside, it is too late to make downgrades to our ratings, in our view," analysts at the bank write. "All things considered, our bias is to buy our preferred miners and steel producers following the recent significant weakness," they add. Jefferies also prefer Freeport-McMoRan and Lundin Mining, citing a longer run exposure to copper. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0211 GMT - Chinese shares are lower in early trade, dragged by liquor and bank stocks. Investors are waiting for China's annual plenary sessions in March for a clearer idea on the economic plan and GDP goal for the year. Among liquor stocks, Luzhou Laojiao is down 3.5%, Wuliangye Yibin is 3.1% lower and Kweichow Moutai declines 2.85%. Bank of Shanghai is off 2.8%. Meanwhile, top gainers include Yutong Bus, which is up 5.9% and Yunan Aluminum and National Silicon Industry, which are 4.9% and 3.1% higher, respectively. The benchmark Shanghai Composite Index is down 0.5% at 3196.12, the Shenzhen Composite Index is off 0.3% and the ChiNext Price Index is 0.3% lower. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0203 GMT - SATS is likely to post strong earnings for 3Q FY 2025, after significant core earnings improvement in 2Q, UOB Kay Hian analyst Roy Chen writes in a note. The in-flight caterer and ground handler's earnings may have been supported by strong global air cargo volume amid the seasonally strong October-December quarter, he says. The brokerage expects SATS's 3Q core earnings at over S$90 million, without factoring in possible forex translation gain of up to S$20 million. UOB KH maintains the stock's buy rating and target price of S$4.30. Shares are 0.3% higher at S$3.69.(amanda.lee@wsj.com)

0154 GMT - The Malaysian utilities sector's outlook appears robust amid increasing electricity demand from data centers in 2025, Kenanga IB analyst Teh Kian Yeong says in a note. The sector could see defensive earnings and steady cash flows from electricity transmission assets, which underpin dividend yields of up to 3%, he reckons. Tenaga Nasional is Kenanga's top pick, benefiting from rising demand from new data centers, improved plant efficiency and increased capital expenditure on electricity transmission and distribution, which could drive higher earnings, he adds. Kenanga maintains an overweight rating on Malaysian utilities sector and also favors YTL Power International for its ongoing execution of AI data center initiatives. (yingxian.wong@wsj.com)

0149 GMT - Hong Kong's Hang Seng Index sheds 0.2% to 19726.24, erasing earlier gains. Markets await further clarity on policy directions for the incoming Trump administration while assessing the impact of a more hawkish Fed interest rate cycle, which analysts at Cinda International say will likely cap the upside potential for Hong Kong stocks. Meituan falls 2.5%, Nongfu Spring drops 2.2% and Budweiser Brewing Co. APAC sheds 1.5%. Meanwhile, Lenovo Group rises 2.95%, SMIC gains 2.7% and JD.com adds 1.6%. The Hang Seng Tech Index is up 0.4% at 4419.51. (kimberley.kao@wsj.com)

0131 GMT - Malaysian oil and gas sector's earnings outlook may remain neutral given strong oil supply growth and modest demand increase, with Brent oil prices forecast at $75/bbl for 2025 and $70/bbl for 2026, Hong Leong IB analyst Brian Chin says in a note. Most oil & gas services and equipment companies' earnings likely peaked in 2024, with marginal growth expected in 2025, he reckons. However, their recent share price correction appears overdone on concerns regarding potential revenue impact with Sarawak's state-owned Petroleum Sarawak becoming the sole gas aggregator in the state. Hong Leong maintains a neutral rating on Malaysia's oil and gas sector, and pegs Dialog Group, Wasco Bhd. as its top picks. (yingxian.wong@wsj.com)

0111 GMT - Singapore's FTSE Straits Times Index rises 0.5% to 3820.00, tracking Wall Street's gains on Friday. The main theme has been risk-on, Commerzbank Research analysts say in a research report. Focus for this week is likely to be on the health of the U.S. labor market, with some major employment data such as non-farm payrolls on Friday, the analysts add. Among the best performers on the benchmark index, Mapletree Logistics Trust rises 1.5%, Seatrium adds 1.4%, and CapitaLand Integrated Commercial Trust is up 1.0%. (ronnie.harui@wsj.com)

0107 GMT - Malaysia's benchmark Kuala Lumpur Composite Index is flat at 1630.07. The local index is likely to consolidate as uncertainty over Trump's policies and a stronger dollar drive cautious investor sentiment and foreign outflows, Apex Securities says in a note. However, Malaysian stocks' attractive valuations could limit the downside, the brokerage adds. The technology sector may gain, mirroring Nasdaq's rise last Friday, while the energy sector could see bargain-hunting amid hopes for stronger demand and China's growth stimulus, it adds. Among gainers, YTL Corp. adds 1.1% and Public Bank is up 0.4%. Meanwhile, Petronas Chemicals is down 0.6% and IHH Healthcare is 0.3% lower. (yingxian.wong@wsj.com)

0105 GMT - Bellevue Gold's 2Q operational update is significantly weaker than expected due to low grades, Moelis Australia analyst Paul Hissey says in a note. Access to higher grade ore--to support an uplift in production rates--has been delayed, resulting in an even stronger 2H weighting to production forecasts for the year, he says. There is "some abstruse disclosure in the result which a skeptic may choose to infer additional underperformance for the quarter," says Hissey. The update provides 2Q sales numbers but then refers to FY production guidance, which could mean that 2Q production was even lower than sales, he says. Bellevue is down 9.4% at A$1.0375/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

January 05, 2025 22:08 ET (03:08 GMT)

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