SPY382.19+0.77 0.20%
DIA313.65+0.66 0.21%
IXIC12,977.15-20.60 -0.16%

DJ Global Equities Roundup: Market Talk

· 02/08/2021 00:30

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

0530 GMT - Leong Hup International's near-term prospects are turning positive on the back of recent improvement in livestock prices in Malaysia and Indonesia, Hong Leong Investment Bank says. While it remains to be seen if recent recovery in livestock prices sustain over the longer term, Hong Leong believes it's unlikely that poultry product prices will revisit their previous lows. It upgrades the stock's rating to buy from hold, given the more palatable valuation following the recent share price retracement, and keeps target price unchanged at MYR0.76. Shares are down 0.7% at MYR0.68. (chester.tay@wsj.com)

0528 GMT - Mahindra & Mahindra seems to be executing well on all fronts, based on its 3Q results, Nomura says, as it raises the stock's target price to INR1,165 from INR923 with an unchanged buy rating. Demand for its tractors was strong, thanks to healthy rural income levels, good monsoons and low inventories, and Nomura expects the auto maker's market share to rise further due to the launch of a new lightweight tractor platform. Its management's capital allocation plan is almost complete, Nomura says, noting Mahindra & Mahindra's international business could post a narrower loss of around INR3 billion by FY 2022 versus about INR30 billion in FY 2021. Shares are 7.2% higher at INR928. (ronnie.harui@wsj.com)

0525 GMT - Australia's S&P/ASX 200 rose 0.6% to 6880.7, its highest close in almost a year. Materials was the strongest performing sector, rising 2.0% as Rio Tinto, Iluka, Mineral Resources and Lynas put on between 3.4% and 7.2%. Financial stocks added 0.3%, led by Zip Co., which added 13% amid media reports the buy-now-pay-later provider is showcasing to U.S. investors. Vocus Group also added 13%, surging on a US$2.62 billion takeover proposal for the fixed-line communications provider. Afterpay rose 1.4% to a fresh all-time high A$153.46, helping pull the tech sector 0.8% higher. The ASX 200 is 3.9% away from its record close 7162.5 of Feb. 20, 2020. (stuart.condie@wsj.com; @StuartLCondie)

0524 GMT - Sime Darby and Bermaz Auto are likely to be the main beneficiaries if Porsche AG establishes an assembly plant in Malaysia, Maybank IB Research says. The two automotive companies could get an earnings boost from their shareholdings in Inokom Corp Sdn Bhd., the company rumored to be partnering with Porsche in setting up the plant. Maybank has buy ratings for both Sime Darby and Bermaz, with a target price of MYR2.70 for Sime Darby and MYR2.10 for Bermaz. Shares of Sime Darby gain 1.4%, while Bermaz rises 1.5%. (chester.tay@wsj.com)

0514 GMT - Suzuki Motor could benefit from recovering demand in India, as new reported Covid-19 cases there have fallen significantly, Nomura says. The auto maker could also gain from the Modi government's planned scrappage policy for passenger cars that are 20 years or older, as Suzuki is a a major producer of cheap automobiles. Nomura projects Suzuki's operating profit to rise 27% for the year ending March 2022, as it expects higher sales in India to outweigh increases in depreciation and overheads. Nomura maintains a neutral rating on the stock and raises its target price to Y5,450 from Y4,550. Shares are down 2.7% at Y4,972. (justina.lee@wsj.com)

(END) Dow Jones Newswires

February 08, 2021 00:30 ET (05:30 GMT)

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