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DJ Global Equities Roundup: Market Talk

· 02/05/2021 03:35

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

0835 GMT - Consensus forecasts at Carlsberg are likely to come down slightly after 2021 guidance pointed to a small impact from currencies, says Kepler Cheuvreux. Carlsberg reported lower 2020 revenues than expected, but profit was a beat, it says. Operating profit in Western Europe fell short of expectations, while it was above consensus in both Asia and Eastern Europe and lower overhead costs also boosted the result. The company guided for organic growth in operating profit for 2021 of between 3% and 10%, against market expectations for 10%, the bank notes. Shares trade 3% higher at DKK960. (dominic.chopping@wsj.com)

0834 GMT - Hong Kong stocks ended the day higher, driven by strong gains in the Macau gaming sector. The benchmark Hang Seng Index rose 0.6% to settle at 29288.68. Casino operators led gains after Wynn Macau's 4Q earnings beat expectations, driving investors to turn more positive on the sector as whole. Wynn Macau rose 4.3%, while Galaxy Entertainment soared 6.3% and Sands China was up 4.1%. Exporters lent further support, with Techtronic Industries advancing 4.2% and Shenzhou International adding 2.5%. (yifan.wang@wsj.com)

0831 GMT - Enel's 2020 preliminary results beat expectations in terms of debt level, Equita Sim says. The Rome-based energy company reported net debt at EUR45.4 billion, better than guidance of EUR48 billion to EUR49 billion and expectations of EUR48.7 billion, according to analysts at the bank. "Even excluding the EUR2.3 billion positive effect from the reclassification of the hybrid bonds, which have an equity component, the debt would have been EUR1 billion better than expected," Equita Sim says. (giulia.petroni@wsj.com)

0829 GMT - Raiffeisen Bank International delivered better-than-expected results for the fourth quarter, helped by fees income and provisions, Citi says. Fees were higher than expected, while the Austrian banking group booked lower-than-expected provisions, it says. "A sound end to a challenging year," Citi says. "Still, given our cautious view on Polish FX mortgage litigation risk we continue to rate the stock neutral." In line with expectations, Raiffeisen said it would pay EUR0.48 dividend per share--the regulatory maximum allowed--but added that it may consider an additional distribution this year if restrictions are lifted, says Citi. (pietro.lombardi@dowjones.com; @pietrolombard10)

0820 GMT - South Korea's Kospi added 1.1% to close at 3120.63. The stock benchmark gained 4.9% for the week, notching the strongest weekly percentage gain in a month. Chemical, financial and pharmaceutical stocks led gains, as higher oil prices and better-than-expected U.S. unemployment benefits data boosted investor sentiment. Kumho Petro Chemical surged 9.3% and LG Chem rose 2.8%. Banking stocks also gained, with KB Financial up 5.5% and Hana Financial 6.5% higher after solid 4Q earnings. Biopharma company Celltrion Inc. closed unchanged, erasing early gains as Korean authorities granted conditional approval for the company's Covid-19 antibody treatment candidate. (kwanwoo.jun@wsj.com)

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)

(END) Dow Jones Newswires

February 05, 2021 03:35 ET (08:35 GMT)

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