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Welcome to Equity Espresso’s Daily Recap.

The Aussie equity market followed Wall Street’s lead lower on Tuesday, giving back some of Monday’s gains ahead of a busy week of economic data. The ASX 200 index ended the day down 31.7 points, or 0.4%, to close at 7,780.20.

Nine sectors finished the session lower, with the volatile Technology (-1.55%) sector giving back some of its gains in 2024. Sector leaders Wisetech Global (-2.29%) and Xero (-2.71%) both saw some of the more significant falls. Telco (-0.99%) and Materials (-0.73%) also saw falls, as Iron Ore prices dipped by almost 1.00% to trade just above US$110.00.

The Energy sector (+0.50%) was the best performer in the Aussie market, as Brent crude prices traded just under US$87.00/bbl after gaining almost 2.0% on Monday. Woodside Energy (+0.96%) and Santos (+0.40%) both finished the day higher.

An important week for economic data this week, with the monthly CPI for February set to be released tomorrow, as analysts predict a YoY rise of 3.50% after last month’s 3.40% increase. Retail sales for February will drop on Thursday, which is expected to increase by 0.4% MoM.

In company news, Mesoblast (+45.5%) shares surged after the U.S. Food and Drug Administration said that recent trial data was sufficient to allow the company to re-submit a previously rejected licence application.

Premier Investment (+4.4%) shares are closing into their all-time high after reporting better-than-expected global sales of $879.5 million for the first half of FY24, down 2.8% from the pcp. EBIT for the half was $209.8 million, down 4.8%. It also provided a strategic review update, stating it is working towards a demerger of its SMiggle business by the end of January 2025 and is exploring a demerger of its Peter Alexander brand during next year.

Atlas Arteria (-4.3%) was among the worst performers on the All Ordinaries after trading ex-dividend this morning.

Wall Street

The U.S. market lost ground in the first session of a shortened week on Monday as investors prepare for the key PCE Price index data set to drop on Good Friday. The index is an average measure of the increase in prices for all domestic personal consumption and is historically looked at closely by the Federal Reserve to set monetary policy. All three of the major U.S. indices finished lower, with the Dow Jones (-0.41%) seeing the largest fall, followed by the S&P 500 (-0.31%) and NASDAQ (-0.27%).

In company news, Boeing (+1.3%) shares rose after the aerospace company announced that CEO David Calhoun would step down at the end of 2024 after a turbulent 12-month period. Digital World Acquisition Corp. (+35.2%), the special purpose acquisition company, surged following shareholders' approval for a merger with Trump Media & Technology Group, the social media company owned by former President Donald Trump, which operates Truth Social.

S&P500 Sector Performance

Economic Data

• Australia’s Consumer Sentiment index fell 1.8% to 84.4 in March from 86 in February after hitting a 20-month high last month.

• South Korea’s Consumer Sentiment Index fell to 100.7 points in March, down from February’s level of 101.9, the highest reading since August 2023.

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Quick Singles

🌎️ Around The Globe

• Cocoa futures reached a new record level of US$9,400/t, marking a 45% increase in March. This price surge is attributed to a poor harvest in the top producing countries, Ivory Coast and Ghana, resulting in supply shortages. El Niño brought heavy rains in December, leading to crop damage and the spread of black pod disease.

• Loyal, a biotech company pioneering longevity drugs for dogs, announced the successful completion of its Series B funding round, securing $45 million in investment. Bain Capital Ventures led the round.

• According to Bloomberg News, Apple is reportedly winding down a project to design and develop its own smartwatch displays.

• OpenAI is reportedly seeking to partner with the entertainment industry by presenting its unreleased AI video generation tool, Sora, to Hollywood studios, directors, and talent agencies.

• Apple has reportedly picked Chinese search engine giant Baidu to provide the generative artificial intelligence (AI) technology for its coming iPhone 16. Apple will use Baidu’s Ernie Bot for its iPhone 16, Mac OS and iOS 18 in China.

• Private equity dealmaking in Japan surged last year, with deal value nearly tripling compared to the annual average from 2018 to 2022, marking a 183% increase.

Markets

ASX Company Movers

Commodity Prices

Bonds

Forex

Global Health Check

A Little Extra

📉 Going Down?

Top-10 shorted stocks on the ASX - as of March 15

📂 Broker Ratings

1. APA Group (APA) - Upgrade to Outperform from Neutral (Macquarie)

2. BHP Group (BHP) - Upgrade to Add from Hold (Morgans)

3. Beach Energy (BPT) - Upgrade to Add from Hold (Morgans)

4. Mineral Resources (MIN) - Downgrade to Hold from Add (Morgans)

5. MMA Offshore (MRM) - Downgrade to Hold from Buy (Bell Potter)

6. MMA Offshore (MRM) -Downgrade to Hold from Buy Shaw and Partners

7. Sandfire Resources (SFR) - Downgrade to Sell from Neutral (Citi)

👨‍💼 Director Transactions

What are the insiders doing? (On-market trade only)

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