Global Equities Roundup: Market Talk

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

0708 GMT - The Chinese market is likely to maintain a positive momentum throughout the summer, Citi analysts say in a research note. Liquidity, which has improved across the board in the past few weeks, could be the primary driver, they say. Citi sees "a hopeful summer" for China markets--a view they've held through the summer. Following recent consumer-supporting measures, Citi is closely watching for a potential new round of property support and a pickup in infrastructure construction. (tracy.qu@wsj.com)

0641 GMT - AI is unlikely to drive a mass replacement of humans in financial analysis, as its capabilities reduce exponentially as tasks move up the cognitive ladder, Bernstein analysts say in a research note. Bernstein tested several AI platforms to evaluate how they performed relative to human analysts. AI was able to perform basic tasks like data extraction, while its chart-making seemed robust, and it delivered remarkable results when synthesizing information, according to Bernstein. However, AI's performance faltered when it was asked higher-cognition questions like judging company executives' decisions or identifyingpatterns in dense information, Bernstein says. "We learned that AI isn't a natural skeptic like us, but a cognitive enhancing tool at best. Its effectiveness? As good as the human using it," the analysts conclude. (adria.calatayud@wsj.com)

0632 GMT - Endurance Technologies looks well-placed to capitalize on the auto sector's growth opportunities, Axis Securities' Sanchit Karekar says in a research report. This view is backed by the Indian auto components manufacturer's strong product portfolio for electric vehicles, healthy order book and strategic capacity expansions, the analyst says. As of June, Endurance Technologies has secured new business orders valued around INR43.29 billion together with cumulative replacement orders of INR7.17 billion in India. The company also plans capital expenditure of INR2.86 billion for its standalone Indian operations across all segments. The brokerage raises the stock's target price to INR2,730.00 from INR2,160.00, but keeps its hold rating as positives are mostly factored in. Shares are 10.0% higher at INR2,864.80. (ronnie.harui@wsj.com)

0629 GMT - Lower advertising budgets in the videogame and smartphone sectors could drag Weibo's 2H growth, say Nomura analysts in a note. Weibo expects videogame companies to spend less on advertising in 2H amid a lack of new blockbuster titles, and note companies are increasingly focused on marketing campaigns' return on investment, the analysts say. Softening smartphone sales could also affect that sector's advertising. Nomura projects the Chinese company's operating profit margin to narrow to 31% in 2H from 34.6% in 1H, citing likely higher AI investments. Nonetheless, Nomura raises its 2025 and 2026 EPS forecasts by 5% and 4%, respectively, as Weibo's 2Q earnings beat consensus estimates. Nomura lifts its target price on Weibo's ADRs to $11 from $10, but maintains a neutral rating. The ADRs last traded at $11.53. (megan.cheah@wsj.com)

0622 GMT - Indian stocks have some wind in their sails on the first day back after a holiday Friday. The benchmark Sensex is up 1.15% at 81524.53. The gains also follow S&P Global Ratings' upgrade of India's sovereign rating. Banks and financial stocks are leading the session charge, as S&P also upgraded long-term issuer credit ratings on seven banks and three finance firms. It expects financial institutions to keep riding India's good economic growth, and reckons banks will maintain adequate asset quality, profitability, and enhanced capitalization over the next 12-24 months, despite some pockets of stress. Proposed tax measures, meanwhile, should boost festive demand and the keenly watched FY27 earnings outlook, Citi analysts say. Bajaj Finance rises 6.0%, Kotak Mahindra Bank adds 2.1% and Axis Bank gains 1.7%. (kimberley.kao@wsj.com)

0612 GMT - Trimegah Bangun Persada's Phase-2 and -3 capacity expansions at its associate Karunia Permai Sentosa are poised to drive growth, UOB Kay Hian's Benjamin Mikael says in a research report. Phase-2 expansion of 60,000 tons is slated to start production by end-2025 followed by Phase-3 expansion of 65,000 tons in 1Q 2026, the analyst notes. When completed, the Indonesian nickel producer's total ferronickel production capacity will reach 305,000 tons a year. The brokerage forecasts the company's net profit to grow 36.2% in 2025 and 27.0% in 2026, driven by strong production. It raises the stock's target price to IDR1,200.00 from IDR870.00 with an unchanged buy rating. Shares last closed at IDR965.00. (ronnie.harui@wsj.com)

0540 GMT - Pandora's underlying brand momentum remains strong despite the hiccup in July, Alexander Lacik, CEO of the Danish jeweler, says. The group reported an increase in like-for-like sales of 2% last month, slowing from the 3% rise it posted for the second quarter as a whole. The result fell short of consensus expectations of like-for-like growth of 4% for the quarter, prompting a share drop. The stock fell more than 18% on Friday to 844.6 kroner. Lacik calls the share move an overreaction. The CEO notes that the company reiterated its outlook for the year, implying a slightly higher pace than the one it saw in July. (andrea.figueras@wsj.com)

0533 GMT - Ashok Leyland's earnings margins are likely to keep rising, Nomura analysts say in a research report. Management mentioned that price increases and its mix of non-vehicle products have been margin-supportive, and its air-conditioned cabins have had strong traction, the analysts note. Also, players in the medium- and heavy-sized commercial vehicles space like Ashok Leyland pursue pricing discipline, which should help maintain higher margins. Nomura lifts its FY 2025 and FY 2026 EPS forecasts for the Indian automotive manufacturer by roughly 7.8% each. It raises the stock's target price to INR144.00 from INR138.00 with an unchanged buy rating. Shares are 7.5% higher at INR131.10. (ronnie.harui@wsj.com)