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DJ Global Equities Roundup: Market Talk

· 02/05/2021 03:10

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

0810 GMT - The worst from the pandemic may be over for Wynn Macau as it sets its sights on increasing its market share in the premium-mass segment as visitors gradually return, Citi says. Wynn Macau's two casinos returned to profit in 4Q after making losses in the previous two quarters. Nonetheless, the casino operator's exposure to the VIP segment may be hurt by Chin's crackdown on cross-border gambling, and it may face fierce competition from peers launching new resorts. Citi raises its rating to buy from neutral and lifts its target price to HK$15.25 from HK$14.00. Shares gain 4.4% to HK$13.20. (yiwei.wong@wsj.com)

0808 GMT - V-Guard Industries' earnings recovery looks solid based on its 3Q results, Jefferies says, raising the stock's target price to INR275 from INR255 with an unchanged buy rating. The appliance maker's performance rebounded sharply in the quarter, driven by a strong rally in consumer demand, Jefferies says. The company has resumed operations across locations and its channel partners are healthy, with prudent inventory and receivables management. The company expects the trend to continue in 4Q thanks to a broad-based macroeconomic recovery and strong traction in focus categories, Jefferies says. V-Guard Industries shares are 3.0% lower at INR244.60. (ronnie.harui@wsj.com)

0803 GMT - German manufacturing orders fell in December for the first time since April, but this doesn't change the fact that the manufacturing sector is still clearly on the road to recovery, Ralph Solveen, senior economist at Commerzbank. The 1.9% on the month decline is largely due to a significant drop in orders from the "other vehicle" sector, which is very volatile, Solveen says. Moreover, orders were still clearly above their pre-crisis level, he adds. "The upbeat sentiment among manufacturers until recently, as reflected in the Ifo business climate and the purchasing managers' index, signals that the trend in manufacturing continues to point clearly upwards," Solveen says. The manufacturing sector is likely to support the economy in the first quarter, he says. (maria.martinez@wsj.com)

0752 GMT - Germany's industrial orders fell in December, suggesting that the stricter lockdown, together with continuing lockdowns in other eurozone countries, has finally had a negative impact in the industrial sector, Carsten Brzeski, global head of macro at ING, says. Industrial orders are still 2.5% above their pre-crisis level and despite the pandemic, the year 2020 will be the first year since 2017 in which industrial orders recorded a positive year in terms of average monthly growth, Brzeski says. But the data show that the stricter lockdown measures have finally hit German industry and although this looks like a temporary breather, with the Chinese New Year break and lockdowns in many trading-partner countries, setbacks for industry seem hard to avoid. (maria.martinez@wsj.com)

0749 GMT - Shares in Raiffeisen Bank International are expected to open higher, according to Lang & Schwarz, after the bank released preliminary results for the fourth quarter and the full year. The Austrian banking group posted a 2020 profit of 804 million euros, compared with EUR1.23 billion a year earlier. It said rate cuts, lockdown measures and weaker currencies in Central and Eastern Europe hit revenue. (pietro.lombardi@dowjones.com; @pietrolombard10)

0748 GMT - Mitsui Fudosan's net profit more than doubled on year in 3Q, thanks in part to increased property sales to investors following a 2Q net loss. The Japanese real-estate developer's 3Q special loss related to the Covid-19 pandemic was Y1.07 billion, compared with Y13.22 billion in 1H. Its net profit was Y89.85 billion, easily beating the estimate of Y51.79 billion expected in a Visible Alpha poll of analysts. Mitsui Fudosan maintains its net profit view of Y120.00 billion for the fiscal year ending March, saying some of its businesses such as hotels are recovering more slowly. (kosaku.narioka@wsj.com; @kosakunarioka)

0747 GMT - Increasing loan demand from pandemic-hit small businesses and retail investors in a booming stock market could help Hana Financial Group sustain solid earnings growth in 2021. Daiwa Capital forecast in a recent note that steady growth in interest and fee incomes, as well as lower credit costs could drive Hana's future earnings growth. The company's above-consensus 4Q results were supported by steady net-interest and fee incomes growth. The company's 4Q net profit jumped 52% on year to KRW544.99 billion, beating a FactSet-compiled consensus forecast for KRW403.36 billion. For 2020, its net profit rose 11%. (kwanwoo.jun@wsj.com)

0745 GMT - The FTSE 100 is expected to start the session trading flat as investors continue to weigh Thursday's Bank of England policy announcement and look ahead to U.S. jobs data later. IG estimates the index will open 2 points lower. Sterling extends Thursday's gains after the BOE left its key interest rate unchanged at 0.1% and poured cold water on the prospect of negative rates in the near-term. The U.S. nonfarm payrolls report, due at 1330 GMT Friday, is expected to show a return to jobs growth in January. "A strong figure seems unlikely to discourage risk lovers, but too strong data could weigh on investor sentiment and lead to some profit taking in risk positions," Swissquote Bank analyst Ipek Ozkardeskaya says. (renae.dyer@wsj.com)

0741 GMT - BNP Paribas delivered solid 4Q results and gave an encouraging outlook for this year, Citi says. The French bank's quarterly profit beat expectations, while profit for the year was better than the bank had guided for. Looking at this year, the bank expects higher revenue and lower provisions, while operating costs should remain roughly stable. However, it warned that fixed-income revenue will probably decline. BNP's results "were better than expected, and provided update on capital strategy and encouraging outlook for 2021," Citi says. "This set of results continue to confirm the resilience of the group's profitability and balance sheet, as well as the benefit of the diversification," it adds. (pietro.lombardi@dowjones.com; @pietrolombard10)

0741 GMT - Enel's 2021 Ebitda target could be challenging as a spike in European power prices is expected to pressure supply margins, along with weakness in Latin American currencies, says Citi. According to the Rome-based energy company's 2020 preliminary results, adjusted Ebitda was in line with the previous year and just below the EUR18 billion target, partly due to weakening retail margins. Citi says this reflects a decline in volumes and the spike in power prices, particularly in Spain. "The 10% clean Ebitda growth embedded in targets is extremely challenging, also in light of the persisting decline in customer base and low power prices achieved by renewable capacity additions," Citi says. (giulia.petroni@wsj.com)

0739 GMT - Ping An Healthcare & Technology might only break even in 2025 because of rising expenses, Goldman Sachs says. The Chinese online-health-care provider's expenses are expected to rise, given its plans to expand its in-house medical team, grow its online platforms and broaden its range of services. GS lowers its revenue estimate by 7.7% for 2021 and 15.4% for 2022 to factor in more competition in the telemedicine industry and a potential foreign-exchange loss. It keeps its buy rating on the stock and cuts the target price by 7.4% to HK$120.37. Shares fall 5.2% to HK$104.90. (yiwei.wong@wsj.com)

0738 GMT - Subaru Corp. is giving hard numbers that illustrate the damage from a recent semiconductor shortage. The Japanese car maker had penciled in production of 881,300 vehicles for the year ending March 2021 but said Friday this would fall to 823,400 vehicles owing to chip shortages. While 48,000 fewer vehicles may not be much for a giant like Toyota, "it's never a small figure for us," says Subaru CFO Toshiaki Okada. Subaru said the impact would linger past April this year. It already halted production in Japan once for a few days, and Okada said another suspension is possible. ( chieko.tsuneoka@wsj.com )

(END) Dow Jones Newswires

February 05, 2021 03:10 ET (08:10 GMT)

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