The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0546 GMT - Semirara Mining & Power may benefit from likely stability in coal and electricity spot prices, Maybank Securities' Germaine Guinto says in a research report. Coal prices have normalized following supply shocks in 2022, and electricity spot prices are declining at a slower pace amid improving supply conditions, the analyst says. The Philippine company's integration of its coal mining and power generation businesses, and growth in coal exports have helped preserve margins, the analyst adds. The brokerage raises the stock's target price to PHP34.00 from PHP31.04 based on a sum-of-the-parts discounted cash flow valuation of the company's two businesses. It maintains its buy rating. Shares are 1.1% higher at PHP33.20. (ronnie.harui@wsj.com)

0356 GMT - Malaysian equities may face volatility in the near term amid persistent tariff uncertainties and a likely turbulent 3Q for the domestic market, CIMB Securities says in a note. Locally, potential reforms to RON95 fuel subsidies and higher power tariffs could weigh on sentiment, it says. However, these headwinds could be partially offset by strong domestic liquidity, a strengthening ringgit and policy support. CIMB lowers its forecast for KLCI core net profit growth to 3.4% from 9.3% for 2025 and to 6.5% from 6.6% for 2026 following a weak 1Q earnings season. It also reduces its end-2025 KLCI target to 1560 from 1657 and prefers companies with defensive earnings profiles. CelcomDigi, Public Bank and Tenaga Nasional are among its top large-cap picks. The KLCI is 0.3% lower at 1503.51. (yingxian.wong@wsj.com)

1931 GMT - Oil futures gain in the wake of the OPEC+ decision to unwind another 411,000 barrels a day of output cuts in July, with geopolitical risk premium over Russia-Ukraine and U.S.-Iran nuclear talks supporting prices. Analysts at Kpler see strong seasonal demand absorbing much of the increased output in the near term. Kpler's Homayoun Falakshahi notes that OPEC+ exports declined in May. "This really indicates that most of the production increase is being consumed domestically, and part of the reason why we are seeing prices rise today," he says. "The OPEC+ decision is not that bearish in the short term." WTI settles up 2.8% at $62.52 a barrel, and Brent rises 2.9% to $64.63 a barrel, off their intraday highs of $63.88 and $65.76, respectively. (anthony.harrup@wsj.com)

1741 GMT - Oil futures are off early highs but holding gains despite the widely expected decision by OPEC+ to unwind another 411,000 barrels a day of output cuts in July. Most of the OPEC+ news was already priced in, and while many "what ifs" remain around the Russia-Ukraine war and talks for U.S.-Iran nucleardeal, "stronger global fuel demand is a current given," BOK Financial's Dennis Kissler says in a note. "It seems fuel demand has suddenly woken from its deep sleep, and on a global scale." WTI is up 3.4% at $62.86 a barrel, and Brent is 3.4% higher at $64.93 a barrel. (anthony.harrup@wsj.com)

1243 GMT - Oil futures add to overnight gains after OPEC+ agreed at the weekend to unwind another 411,000 barrels a day of output cuts in July, which was widely expected and largely priced in. Geopolitical premium increased as Ukrainian launched drone attacks against Russia, while a U.S.-Iran nuclear deal still appears elusive. The OPEC decision is driving prices up "and from a technical standpoint, creating the potential for a short-term rally that may last a few days," Spartan Capital's Peter Cardillo says in a note. "However, we do not anticipate a sustained rally, as oversupply continues to be a concern." WTI is up 4.7% at $63.65 a barrel, and Brent is 4.2% higher at $65.40 a barrel. (anthony.harrup@wsj.com)

1009 GMT - The start-up of Galp's Bacalhau project in Brazil could be another catalyst for its shares, UBS analysts write. The Portuguese oil company's production in the country has been relatively stable over the past four years, they write. This is because of maintenance and aging assets, they add. However, the Bacalhau project should start soon and production should grow at a compound annual growth rate of 14% through to 2027, they write. Production should reach a plateau towards the end of 2026 before eventually declining, they write. Shares trade up 3.3% at 14.51. (adam.whittaker@wsj.com)

0945 GMT - Galp's Mopane discovery off Namibia could start generating positive free cash flow in the mid 2030's, UBS analysts write. The discovery could hold more than 10 billion oil equivalent barrels and could boost Galp's production by 135,000 barrels a day, they write. Galp is looking for a partner to invest in the project, they write. Any announcement is likely to be a positive catalyst for the stock, they add. Shares trade up 2.6% at 14.4 euros. (adam.whittaker@wsj.com)

0904 GMT - Galp's Mopane discovery in Namibia has the potential to nearly double its share price over the next five years, UBS analysts write in a research note. Shares in the Portuguese oil company are down nearly 30% from last year's high as the market becomes increasingly skeptical about its discovery, they say. However, data shows it has the making of a large commercial discovery, they say. The analysts upgrade their rating of the stock to buy from neutral and set a target price of 20 euros a share, up from 15 euros previously. Shares trade up 2.95% at 14.46 euros. (adam.whittaker@wsj.com)

(END) Dow Jones Newswires

June 03, 2025 04:20 ET (08:20 GMT)

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