The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0808 GMT - CIMB Group's earnings prospects should stay optimistic, supported by a more favorable operating environment and levers that could help it meet its 2027 ROE target of 12%-13%, RHB IB analyst David Chong says in a note. Growing investor confidence in the ROE target should support share-price performance ahead. A turnaround in Indonesia is a key upside, with firmer credit demand, easing funding conditions and a stable USD/IDR expected to support net interest margin recovery, he says. Indonesia contributes about 23% of CIMB's profit before tax, he notes. CIMB's strong liquidity and improving asset quality could reverse some of its provision buffers and help keep credit costs under control. RHB raises CIMB's target price to MYR9.00 from MYR8.55 while maintaining a buy rating on the stock. Shares are 2.7% lower at MYR8.02. (yingxian.wong@wsj.com)
0430 GMT - Singapore equities are likely to post muted market performance, as Macquarie analysts pencil in a year-end target of 4500 for the FTSE Straits Times Index target. Banks, which account for about half of the benchmark index, are likely to be a drag rather than a driver, as revenues face pressure from lower interest rates following two years of strong performance, the analysts say. However, liquidity remains a key upside risk for the index, as it could drive further yield compression. The FTSE Straits Times Index is last 1.1% higher at 4733.01. (amanda.lee@wsj.com)
0236 GMT - Singapore Exchange is likely to post strong 1H FY 2026 earnings, RHB Research's Shekhar Jaiswal writes in a note. The stock-market operator's core profit growth could rise 12% on year, thanks to strong growth in securities daily average value and derivatives daily average volume. Cash equities are expected to deliver the strongest revenue growth, the analyst says. Singapore Exchange's medium- to long-term outlook remains supported by regulatory initiatives and supportive macroeconomic drivers. RHB keeps its neutral rating on the stock and targets S$17.90. Shares are 1.2% higher at S$17.40.(amanda.lee@wsj.com)
0040 GMT - Singapore's equity market has bullish foundations in place for 2026, given positive earnings growth prospects and funds flow momentum, UOB Kay Hian's analysts say in a research report. There are tailwinds from the MAS' Equity Market Development Programme and a return to earnings growth for stocks under the brokerage's coverage. The Singapore market may continue to attract fund flows given the prevalence of large-cap blue-chip defensive stocks with strong SGD-based cash flow generation and relatively high dividend yields. The brokerage forecasts the FTSE Straits Times Index to reach 5000 by end-2026 and its top large-cap picks include CapitaLand Ascendas REIT, CapitaLand Investment, City Developments, DFI Retail Group, Genting Singapore, Keppel, OCBC, and Sea. (ronnie.harui@wsj.com)
1723 GMT - A number of factors suggest that 2026 will bring significant debt issuance, supporting outperformance for Moody's, say Stifel analysts who upgrade the stock to buy from hold and raise their price target to $574 from $471. Interest rates are coming down while credit spends are narrowing, which tends to stimulate debt issuance. Additionally, a backlog of companies waiting to IPO, which leads to debt stack redos, has been building and M&A is growing. Moody's also recently saw a material increase in quarterly revenue in its ratings assessment service, which is usually a precursor to future debt issuance, the analysts say. Meanwhile, AI poses little threat to Moody's, which uses proprietary data and analytics, the analysts say.(nicholas.miller@wsj.com)
(END) Dow Jones Newswires
January 06, 2026 04:20 ET (09:20 GMT)
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