DJ Global Equities Roundup: Market Talk

0729 GMT - STMicroelectronics anticipates material revenue growth next year in spite of the continuing semiconductor shortage, Citi says after hosting the European chip maker's CEO Jean-Marc Chery and CFO Lorenzo Grandi at Citi's Global Tech Conference. "Looking towards 2022, management noted that its capacity is already fully covered, suggesting that tightness is unlikely to fully ease before 2023. In 2022, output from foundries is also seen reverting back to more normalized levels," Citi says. The U.S. bank notes the company's gross margin levels for 2H are seen as sustainable into 2022. STMicroelectronics shares trade 0.4% higher at EUR39.68. ([email protected]; @MauroOrru94)

0727 GMT - Chinese stocks finished lower, dragged by consumer-related and property sectors, while lithium producers gained. Chinese economic activity data in August showed that on-year retail sales growth slowed to 2.5% from 8.5% in July, and home sales by value slumped 19.7%, the biggest drop since April 2020. China Tourism Group fell 4.8%, while heavily weighted liquor makers Kweichow Moutai lost 2.5% and Wuliangye Yibin dropped 3.5%. Developers Seazen Holdings declined 5.7% and China Vanke lost 2.7%. Gainers included Ganfeng Lithium, up 7.9%, while Tianqi Lithium rose 2.3%. The Shanghai Composite Index slipped 0.2% to 3656.22, the Shenzhen Composite Index edged 0.1% lower and the ChiNext Price Index ended 1.1% lower.([email protected])

0725 GMT - Inditex's first-half net profit was boosted by growth in gross margins as well as top-line recovery, analysts at Jefferies say. Margin growth of 186 basis points in 2Q helped the Spanish fashion giant swing to a net profit of EUR1.27 billion for the six-month period. Sales recovered strongly, boosted by better demand for party and work attire, Jefferies says, noting that a progressive return to normality post-pandemic will play to the group's strengths in these areas. The investment bank has a buy rating and a EUR35 target price on Inditex stock. Shares slip 0.5% to EUR30.02. ([email protected]; @joshualeokirby)

0717 GMT - Prodia Widyahusada could benefit from the Indonesian government's plans to offer paid Covid-19 booster shots to the general population next year, Citi says. The government has also said it will reimburse low-income individuals for booster shots through state and regional budgets. The Indonesian healthcare provider is also likely to benefit from the administration of pre- and post-vaccination checkups, Citi adds, reiterating that Prodia Widyahusada is its top sector pick. The U.S. investment bank maintains its buy rating and target price of IDR7,425. Shares are 0.7% higher at IDR7,475. ([email protected])

0717 GMT - ICICI Securities looks well-placed for sustainable growth, Axis Securities says, as it initiates coverage of the stock with a buy rating and a target price of INR870. Drivers of this growth include revenue which isn't very subject to cycles due to its diversified product basket and its efforts to diversify revenues, improving client sourcing and activation via proactive use of digital platforms and better profitability owing to its cost-savings efforts. ICICI Securities should also benefit from Indian consumers' rising interest in investing in financial assets like mutual funds, life insurance plans and equities, compared with traditional investment options, Axis Securities adds. The shares are 1.2% higher at INR740.80. ([email protected])

0701 GMT - Gujarat Gas isn't likely to be weighed down by rising spot prices for liquefied natural gas, Jefferies says. The Indian gas importer has reduced its exposure to spot buying in favor of long-term LNG supply deals, which tend to be indexed to more relatively stable oil prices, and should be able to pass on higher costs to its customers due to limited regional competition. The U.S. bank keeps a buy rating on the stock with a INR920 target. Shares are trading 1.1% higher at INR679.75. ([email protected])

0659 GMT - South Korea's Kospi closed 0.1% higher at 3153.40, led by gains in construction and utility stocks. Construction stocks were among the best performers, with sentiment boosted by Seoul Mayor Oh Se-hoon's suggestion to build more new homes by scrapping construction regulations. Hyundai Engineering & Construction gained 1.3%, GS Engineering & Construction advanced 0.6% and Daewoo Engineering & Construction added 0.3%. Utilities were also higher. Korea Gas surged 5.0% and Korea Electric Power rose 0.8%. Developments relating to North Korea are expected to be in focus, following news that it fired two ballistic missiles off its east coast on Wednesday. ([email protected])

0649 GMT - The FTSE 100 is expected to open 7 points lower, according to IG, having closed Tuesday at 7034.06. Losses for U.S. stocks the previous day and weaker data out of China, including retail sales and industrial production, are likely to dampen sentiment. "The global economy is decelerating somewhat faster than was expected from China to the U.S. and potentially in Europe on a back of a well-known series of shocks," says Sebastien Galy, an analyst at Nordea Investment. Concerns about elevated inflation remain, with figures showing a slight softening in U.S. inflation Tuesday failing to do much to improve risk appetite, while U.K. figures earlier showed annual CPI inflation at 3.2%, higher than the 2.9% forecast in a WSJ poll. Individual stocks in focus include Tullow Oil, which announced a swing to 1H profit. ([email protected])

0637 GMT - Inditex's 1H results should go down well with investors, as the Spanish fashion group booked a return above pre-pandemic revenue in its 2Q. Net sales of EUR11.94 billion for the six months included a 2Q rise of 7% at constant currency compared with the same period of 2019, a trend that has continued into 3Q, Inditex said, with essentially all stores now open and online sales continuing their growth. The Zara owner looks to be cashing in on apparel needs amid a return to socializing and office work, Jefferies said ahead of the print, upgrading the stock to buy from hold and the target to EUR35 from EUR31. ([email protected]; @joshualeokirby)

0632 GMT - Hindalco Industries has likely tailwinds from the recent aluminum price rally which was due partly to the political unrest in bauxite-exporting Guinea, Jefferies says. Bauxite is used in the production of aluminum. It says that any price rise caused by bauxite-related supply disruptions should benefit Hindalco as the company has its own bauxite mines in India. The U.S. bank keeps a buy rating, as it raises Hindalco's 2022-2023 EPS forecasts by 7%-13% to account for aluminum's price gains, and increases Hindalco's target price to INR610 from INR560. Its shares rise 0.2% to INR478.85. ([email protected])

0625 GMT - Australia's S&P/ASX 200 closed 0.3% lower at 7417.0, snapping a three-day winning streak on losses by commodity and financial stocks. The benchmark followed U.S. stocks lower at the open before paring losses to close 2.8% below its record close of 7628.9 from Aug. 13. The energy sector lost 2.2% as Whitehaven Coal, Oil Search, Santos, Beach Energy and Worley gave up between 2.3% and 4.3%. Generator and retailer AGL slumped 7.4%, making it the worst-performing ASX 200 component. BHP lost 3.5% as it detailed its potash plans more, while Champion Iron fell 3.2%. Commonwealth Bank, NAB and ANZ slipped by between 0.2% and 0.4%. ([email protected]; @StuartLCondie)

0617 GMT - New Zealand's NZX-50 index edged lower by less than 0.1% to 13099.31 after the country recorded a current account deficit of 3.3% of GDP in 2Q, meeting market expectations. Fisher & Paykel Healthcare slipped 0.8% for a third straight loss, while Mainfreight fell 0.7% and Spark NZ nudged 0.3% higher. Utilities were mixed, with Meridian rising 2.0% and Mercury NZ slipping 1.5%. Retirement village operators were also mixed, with Ryman up 1.3% at and Summerset falling 1.5%. The NZX-50 is up 0.2% for the week. ([email protected]; @StuartLCondie)

(END) Dow Jones Newswires

September 15, 2021 03:29 ET (07:29 GMT)