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

0319 GMT - SD Guthrie's 2025 earnings outlook remains strong, driven by firm palm oil prices and improving upstream performance, Kenanga IB analyst Khoo Teng Chuan says in a note. CPO prices are expected to average MYR4,200/ton in 2025, higher than the previously expected MYR4,000/ton. Better fruit yields and lower fertilizer costs should help contain unit costs despite wage inflation, he says. While downstream demand may gradually recover, margins are expected to remain tight, he says. SD Guthrie is also expanding into renewable energy and industrial property developments, with contributions expected from 2026, he notes. Khoo raises SD Guthrie's 2025 core EPS forecasts by 5% due to higher CPO prices estimates. Kenanga raises the target price to MYR4.60 from MYR4.65, maintaining a market perform rating on the stock. Shares are 1.2% higher at MYR5.03. (yingxian.wong@wsj.com)

0314 GMT - IHH Healthcare's long-term prospects may remain optimistic, given its strategic plan for organic and inorganic growth, RHB IB analyst Oong Chun Sung says in a note. The healthcare service provider is targeting 4,000 new beds by 2028, with key expansion focussed on Malaysia and India, he notes. Oong cuts IHH's 2025-2026 earnings forecast by 3% and 1%, respectively, to factor in higher finance costs. RHB cuts IHH Healthcare's target price to MYR8.70 from MYR9.10 as its 2024 earnings came in below estimates, while maintaining a buy rating on the stock. Shares are 1.1% higher at MYR7.39. (yingxian.wong@wsj.com)

0258 GMT - Capital Economics remains cautious on the outlook for Chinese stocks after the recent DeepSeek-driven rally. China's tech stocks near-term outlook is better than CE expected as Beijing is now more supportive to private companies, says Thomas Mathews, head of Asia Pacific markets at Capital Economics. However, with the IT sector accounting for just 8% of the MSCI China Index by capitalization, the AI boost for Chinese equities will likely be smaller than other tech-heavy markets, he says. Despite the recent AI innovations in China, it could be a challenge to capitalize on it more broadly, he says, adding that valuation of Chinese equities may remain lower than global peers due to trade uncertainties and concerns about the economy. (sherry.qin@wsj.com)

0246 GMT - Sembcorp Industries looks well-positioned to capture various opportunities, OCBC Investment Research says in a note. These opportunities include energy transition, greater artificial intelligence usage and industrial realignment, the OCBC team says. Going forward, the Singapore-listed energy, water and urban development group's renewables segment is likely to grow, the team says. Drivers are full-year contribution of assets acquired during the year and commissioning of greenfield projects, it adds. OCBC raises the stock's fair value estimate to S$7.20 from S$6.70 with an unchanged buy rating. Shares are 0.8% higher at S$6.08. (ronnie.harui@wsj.com)

0236 GMT - RHB Bank's net interest margin may widen in 1Q, amid the easing of seasonal fixed deposit rivalry and strict pricing strategy, Hong Leong IB analyst Chan Jit Hoong says in a note. Loan growth is likely to remain strong, given the resilience in the economy, he reckons. However, net credit cost may slightly rise amid expectations of higher provisions, he says. RHB's risk-reward profile appears attractive, supported by about dividend yield of 6% and an undemanding valuation, he adds. Chan raises RHB's 2025-2026 profit forecasts by 4% each to factor in stronger top-line prospects. Hong Leong also raises RHB's target price to MYR7.80 from MYR7.55, maintaining a buy rating on the stock. Shares are 0.7% higher at MYR6.82. (yingxian.wong@wsj.com)

0232 GMT - Rio Tinto says it isn't in the interest of its shareholders to divulge its tax exposures via an independent review of its dual-listed structure, as requested by Palliser Capital. Macquarie agrees there is a risk in airing the full details publicly. "Public examination raises the risk of renegotiation," Macquarie analysts say in a note. Rio Tinto has rejected calls by Palliser to drop its dual listing, claiming tax costs in the mid-single-digit billions of dollars. It hasn't released fuller details of its own internal review. "If aired, then the risk may eventuate regardless, changing the incremental friction costs," Macquarie says. Still, the Australian bank reckons there are potential benefits to unification, which could include improve valuation for London investors and accelerate the use of Australian tax, or franking, credits. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0149 GMT - Chinese shares fall amid softer sentiment, weighed by President Trump's plans to impose an additional 10% tariff on imports from China. The benchmark Shanghai Composite Index declines 0.4% to 3374.35, the Shenzhen Composite Index drops 1.1% and the ChiNext Price Index is down 1.3%. Semiconductor and tech hardware stocks lead losses. Semiconductor Manufacturing International Corp. drops 1.8% and Hygon Information is 3.9% lower. Foxconn Industrial Internet is off 3.4% and Luxshare Precision Industry falls 1.4%. Oil stocks are broadly higher, with PetroChina rising 0.5% and Cnooc putting up 0.8%. (sherry.qin@wsj.com)

0138 GMT - Hong Kong shares open lower, with sentiment weighed by U.S. plans to impose an additional 10% tariff on Chinese imports. The benchmark Hang Seng Index falls 0.7% to 23542.90. Auto stocks and tech stocks lead losses. Li Auto and BYD are down 2.8% and 2.0%, respectively. Meituan and Alibaba Group decline 1.7% and 1.6%, respectively. The Hang Seng Tech Index falls 0.9%. Among individual movers, Xiaomi leads gains, rising 5.0% after launching a cheaper-than-expected SUV model. Investors are watching for the upcoming Two Sessions meeting that kicks off next week for more details on China's GDP target and stimulus policies.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

0122 GMT - Flight Centre's strong recent momentum keeps the Australian travel agent's bull at Macquarie onside. The ASX-listed company's underlying profit was about 9% lower than Macquarie analysts had anticipated over its fiscal first half, but the decline was heavily weighted toward the first quarter. The analysts point out in a note to clients that underlying profit actually rose 14% in the second quarter and that management says momentum is continuing in both leisure and business into its second half. Macquarie keeps an outperform rating and A$22.34 target price on the stock, which is down 0.25% at A$16.18. (stuart.condie@wsj.com)

0114 GMT - Singapore's FTSE Straits Times Index falls 0.4% to 3904.91, tracking Wall Street's losses overnight. The main theme has been risk-off, Commerzbank Research analysts say in a research report. U.S. President Trump said Thursday that 25% tariffs on Canada and Mexico are on track to commence on March 4, and said an additional 10% tariff will be imposed on China, the analysts note. Among the worst performers on the benchmark index, Seatrium falls 1.4%, Venture Corp. sheds 0.9%, and OCBC is down 0.8%. Olam Group slips 7.7% after reporting its net profit fell 69% in 2024. (ronnie.harui@wsj.com)

0104 GMT - Malaysia's benchmark Kuala Lumpur Composite Index falls 0.5% to 1578.82. The KLCI may stay volatile, tracking Wall Street's overnight declines, Apex Securities says in a note. Recent gains could prompt profit-taking, though corporate earnings releases will likely drive sentiment, the brokerage says. Any major tariff changes may add to market swings, it says. Among decliners, Mr. D.I.Y. Group declines 5.1% and YTL Power International is 2.2% lower. Meanwhile, RHB Bank is 1.3% higher and Petronas Gas adds 0.8%. (yingxian.wong@wsj.com)

0053 GMT - IDP Education's bull at Macquarie is looking to elections in Australia and Canada to provide certainty on the regulatory backdrop for the student-placement provider. An analyst note from the investment bank says the elections, which should lead to certainty on immigration policies and visa numbers, form part of an encouraging set-up for IDP's next fiscal year. Earnings look close to stabilizing in the second half of the current fiscal year, which ends in June, while pricing and costs also seem to have improved, the note adds. Macquarie keeps a A$16.00 target price and outperform rating on the stock, which is down 3.9% at A$10.475. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

February 27, 2025 22:19 ET (03:19 GMT)

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