The latest Market Talks covering ESG Impact Investing. Published exclusively on Dow Jones Newswires at 10:00 ET and 17:00 ET.

0423 ET - Malaysia's palm oil sector's outlook could improve as Malaysian palm oil inventories approach a cyclical peak and the lagged impact of El Nino begins to weigh on production, Public Investment Bank analyst Chong Hoe Leong says in a note. Inventories will likely peak around October before declining from November, providing a stronger basis for CPO prices to recover, he says. A stronger-than-expected El Nino could further tighten global palm oil supply, with production in Malaysia and Indonesia potentially falling 3%-8% under moderate to prolonged dry conditions, he reckons. Higher crude oil prices could also boost palm oil demand for biodiesel, while Indonesia's B50 biodiesel mandate is expected to provide additional structural support, he adds. Public IB maintains an overweight rating on Malaysia's plantation sector, pegging Sarawak Plantation and TA Ann as preferred picks. (yingxian.wong@wsj.com)

0146 ET - Gunkul Engineering might benefit from a new investment cycle in Thailand's power infrastructure, ttb wealth securities' Nuttapop Prasitsuksant says in a note as the brokerage maintains the stock's buy rating. Drivers include surging demand from data-center investment boom and other advanced manufacturing industries, as well as Thailand's policy to raise the share of renewable generation under the Power Development Plan 2026, the analyst says. The Thai company is exposed to this potential opportunity via its engineering, procurement, and construction services business and its renewable power development business. However, the brokerage trims the stock's target price to 5.80 baht from 6.00 baht to partly reflect near-term drag from asset divestment. Shares are 2.0% higher at 5.15 baht. (ronnie.harui@wsj.com)

2155 ET - Haze puts palm oil sustainability back under scrutiny, with recurring fires highlighting the need for stronger land and fire management, MBSB Research says in a note. Malaysia recorded 93 hotspots in September, while Indonesia recorded 14,422, with Kalimantan accounting for 76.8% of the total. While sustainability certifications provide some assurance on environmental and land-management practices, their effectiveness ultimately depends on implementation on the ground, MBSB says. Fires outside plantation boundaries could also affect the industry's reputation and raise questions over smallholder compliance, it reckons. Certification alone may not shield the sector's reputation as Indonesia's B60 biodiesel ambitions boost palm oil demand, making responsible land management increasingly important as production expands, it adds. MBSB maintains a tactical positive stance on Malaysia's plantation sector.