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

2107 ET - Erawan Group is poised to benefit from its strategy of expanding its hotel business, Thanachart Securities' Siriporn Arunothai says in a research report, as the brokerage maintains a buy rating on the stock. This strategy targets high growth markets in Thailand, Japan, the Philippines, and other potential markets in Asia, the analyst notes. It also targets higherreturn, non-luxury segments. The brokerage's forecast for the Thai company's EPS growth is at 15% in 2025, 11% in 2026, and 2% in 2027, citing revenue growth from existing and new hotels. Thanachart Securities raises the stock's target price to THB5.80 from THB5.30. Shares closed 3.1% higher at THB3.32 on Wednesday. (ronnie.harui@wsj.com)

2057 ET - Hong Kong's Hang Seng Index rises 2.1% to 24095.71, led by tech stocks. Markets are likely digesting announcements from China's National People's Congress. Consumption and innovation priorities were heavily emphasized by Premier Li Qiang, with subsidies announced which will benefit manufacturers for appliances, EVs and electronic devices, Maybank analysts write in a note. Kuaishou Technology jumps 7.7%, Alibaba Group rises 6.5% and Tencent Holdings gains 5.0%. The Hang Seng Tech Index is 3.4% higher. Among decliners, Chow Tai Fook Jewellery Group falls 2.3%, Cnooc loses 1.5% and Xinyi Solar is 1.4% lower. (kimberley.kao@wsj.com)

2052 ET - Malaysia's collaboration with Arm Holdings for intellectual-property access looks like a step in the right direction to advancing the semiconductor industry to TA Securities. The move could accelerate Malaysia's chip-design ecosystem growth as well as address a talent shortage issue through an engineer training program, analyst Chan Mun Chun says in a note. If executed well, the deal could reduce Malaysia's reliance on foreign designs and position it as a global player, he says. Local assembly and testing firms may also benefit from higher volumes as homegrown production expands, he adds. TA Securities maintains an overweight rating on Malaysia's semiconductor sector, rating Inari Amertron, Unisem, Malaysian Pacific Industries and Elsoft Research at buy. (yingxian.wong@wsj.com)

2049 ET - Chinese shares are higher in early trade, supported by software and semiconductor stocks. Investors are focusing on Beijing's presser on the economy this afternoon at the ongoing National People's Congress meeting to better understand China's 2025 economic goals. SMIC rises 2.0% and Hygon Information Technology is up 5.2%. Among the software makers, Beijing Kingsoft Office Software is up 7.05%, and iFlytek is 1.85% higher. Steel stocks are broadly lower with Baoshan Iron & Steel down 1.2%. The benchmark Shanghai Composite Index is 0.3% higher at 3352.59, the Shenzhen Composite Index gains 0.5% and the ChiNext Price Index is up 0.6%.(sherry.qin@wsj.com)

2044 ET - First Resources' production growth is likely to persist in 2025, UOB Kay Hian's Lester Siew says in a research report. Management has targeted production growth of 5% for 2025 after robust operational performance from the palm oil producer's estates in 2024, the analyst notes. Similar to its 2024 cost guidance, management has set cost guidance for 2025 at US$280-US$300 per ton, mainly driven by lower unit-crude-palm-oil cost assumptions, the analyst adds. The brokerage lifts its 2025 EPS forecast for First Resources by 21%. It raises the stock's target price to S$1.75 from S$1.65 with an unchanged buy rating. Shares are 1.2% higher at S$1.64. (ronnie.harui@wsj.com)

2036 ET - CIMB Group's long-term outlook may remain promising despite macroeconomic challenges and rising competition, TA Securities analyst Li Hsia Wong says in a note. Its six-year roadmap until 2030 sets ambitious yet achievable goals, leveraging its Asean presence to capitalize on trade opportunities and drive ROE growth, she says. Loan and deposit growth are projected at 7% and 4%, respectively, with ROE reaching 12.3% by 2027 amid stable credit costs, she reckons. However, cost-to-income pressures may persist due to tech investments and inflation. Net interest margin risks may arise from policy rate cuts and competition, but management expects AI-driven efficiencies to boost revenue and cost savings by 10%, she adds. TA Securities has a buy rating and MYR9.68 target on the stock, which is 1.0% lower at MYR7.72. (yingxian.wong@wsj.com)

2012 ET - Singapore's FTSE Straits Times Index rises 0.4% to 3914.90, tracking Wall Street's gains overnight. Investors have hoped that U.S. President Trump's one-month tariff exemption for auto imports from Canada and Mexico will "open the flood gates" for more concessions, the Phillip Securities Research team says in commentary. Among the best performers on the benchmark index, Yangzijiang Shipbuilding rises 1.7%, SATS Ltd. adds 1.3% and Thai Beverage is 1.0% higher. Meanwhile, Jardine Matheson Holdings falls 1.5% and City Developments sheds 0.8%. (ronnie.harui@wsj.com)

2009 ET - Malaysia's partnership with Arm Holdings for access to its advanced technology appears a long-term initiative to shift from manufacturing to intellectual-property-driven semiconductor development, say Hong Leong IB analysts. While the move could spur local innovation and create a new value chain, the sector remains cyclical with mixed near-term fundamentals, Chan Jit Hoong and Tan J Young say in a note. Local tech stocks are trading at high valuations compared with regional peers, they say and favor companies involved in semiconductor applications, followed by foundries, outsourced semiconductor assembly and test companies. Hong Leong maintains a neutral rating on Malaysia's tech sector, and pegs Itmax System and SMRT as its top picks. (yingxian.wong@wsj.com)

2006 ET - Malaysia's benchmark Kuala Lumpur Composite Index is 0.2% higher at 1567.86. Gains on the KLCI may be short-lived as the index nears resistance at 1570, with profit-taking likely amid foreign fund outflows, Apex Securities says in a note. Small cap stocks may see continued bargain hunting after recent selloffs, the brokerage notes. Investors are watching the ECB and Bank Negara's rate decisions later today, it adds. Among gainers, YTL Power International adds 1.6% and Maxis Bhd. is up 1.5%. Meanwhile, Hong Leong Bank is down 0.9% and Press Metal Aluminium is 0.8% lower. (yingxian.wong@wsj.com)

1930 ET - Macquarie analysts see reasons not to assume that lower Australian interest rates accelerate the country's housing market and housing credit growth. Rate cuts have historically led to such a scenario, but they warn in a note that what is likely to be a modest easing cycle and stretched affordability could lead to smaller benefits this time around. They also think that accelerated amortization could drag credit growth. On the flip side, they observe that existing borrowers may choose to reduce their repayments due to cost-of-living pressures, which would help lenders' credit growth. (stuart.condie@wsj.com)

1924 ET - Recent comments from Technology One's management is seen by Bell Potter analyst Chris Savage as supporting his view that the enterprise software provider could lift its annual profit guidance. Savage points out in a note to clients that a presentation by the CEO at February's annual general meeting highlighted the fact that it raised its guidance for fiscal 2024, which ended Sept. 30. Coupled with a comment that the fiscal 2025 outlook is strong, Savage still thinks that the Australia-listed company could lift its profit guidance for the current year to something like 14%-18% growth. Bell Potter raises its target price 3.4% to A$30.50 and keeps a hold rating on the stock, which is down 1.9% at A$28.98. (stuart.condie@wsj.com)

1917 ET - Japanese stocks are higher as concerns about U.S. tariffs recede for now. Heavy-industry and auto stocks are leading the gains. Mitsubishi Heavy Industries is up 7.9% and Kawasaki Heavy Industries is 7.0% higher while Nissan Motor is up 3.0% and Honda Motor is 2.6% higher. USD/JPY is at 149.14, compared with 149.59 as of Wednesday's Tokyo stock market close. Investors are focusing on any developments related to U.S. trade and foreign policies as well as Japanese monetary policy. The Nikkei Stock Average is up 0.9% at 37739.06. (kosaku.narioka@wsj.com; @kosakunarioka)

(END) Dow Jones Newswires

March 05, 2025 21:07 ET (02:07 GMT)

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