• The ASX 200’s upbeat mood didn’t last long. The index has slipped today after a tech rout on Wall Street
  • Trump’s auto import tariffs announcement has absolutely not helped matters on a macro level
  • Hey-ho, at least The Reject Shop has found itself a bargain

 

What were we saying late yesterday? Something about the ASX sustaining its gains. Stating the bleeding obvious, today’s a completely different day on the local bourse.

At the time of writing, the ASX 200 is down 0.53% after a tough session on Wall Street.

The S&P 500 shook off a percentage point overnight, the Dow Jones dipped 0.3 per cent and the tech-heavy Nasdaq slumped 2 per cent.

In fact, along with Trumpian tariffs rearing their ugly head(s) again, it was partly a tech sell-off that has set the tone for today, with ‘Magnificent Seven’ stocks including Nvidia and Tesla taking a hammering.

AI darling Nvidia was hit hardest, falling 6% to bring its loss for the year so far to 15.5%. Other AI stocks took collateral damage.

Tesla copped a 5.58% loss meanwhile as it continues to attempt to absorb some politically charged anger being thrown at CEO Elon Musk.

Meanwhile, other US automakers were wrecked after the White House revealed that President Donald Trump would be announcing tariffs on auto imports, confirming a 25 per cent tariff.

“US auto giants have already spread their production around North America following prior free-trade deals encompassing the United States, Canada and Mexico. General Motors sank 3.1%. Ford Motor went from an early gain to a loss and back before inching up by 0.1%,” wrote Bloomberg.

Per The Australian’s reporting, the US will start collecting the auto tariffs on April 3. The 25 per cent tariff will be added on top of existing duties, including a 2.5 per cent tariff currently imposed by the US.

Meanwhile, Asian carmakers have been feeling the tariffs fear, too.

Per The Australian:

In Japan, Toyota Motor shares were recently down 3.2 per cent, Nissan Motor was 3 per cent lower and Honda Motor was off by 2.3 per cent.

In South Korea, Hyundai Motor was 2.9 per cent lower and Kia was down 1.7 per cent.

Anyhoo, what else, before we look at some ASX market headlines? How’s the crypto market holding up? Better than expected, really (for now). Bitcoin is floating around US$87,400, just trading within the fairly tight $86k-$89k range it’s been in for the past few days.

The Aussie dollar, meanwhile, is trading around US62.84c.

Here’s what the sectors looked like a short time ago. Tech… yikes.

Source: Market Index

 

ASX market news

Discount store chain The Reject Shop (ASX:TRS) was soaring about 110% earlier today after a big takeover offer (more details below) from a Canadian giant in the bargain basement biz – Dollarama, which is based in Montreal and listed on the Toronto Stock Exchange.

The takeover, if approved by shareholders, is expected to be completed in the second half of this year.

Meanwhile, WiseTech Global (ASX:WTC) was attempting to stem its bleed earlier after major shareholder AustralianSuper’s $50m selldown. The tech rout overnight won’t be helping matters for the embattled software player, either. At time of writing, WTC is down 2.6%.

 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for March 27 [intraday]:

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The Reject Shop (ASX:TRS), as mentioned briefly above in ASX Market News, has been flying today, to the tune of 110%, after announcing Canadian retailer Dollarama has made a $259 million takeover offer. It has the backing of the Aussie company’s largest shareholder, Kin Group, controlled by billionaire Raphael Geminder.

TRS said it had entered into a binding scheme implementation agreement with Dollarama for the takeover price of $6.68 per share, representing a 112% premium to the company’s most recent closing price.

Linius Technologies(ASX:LNU) is continuing its upward trend, rising 33% in morning trade following yesterday’s announcement it was establishing a $750,000 convertible note facility and binding commitments for $300,000 in notes from professional and sophisticated investors.

LNU will use the extra funding as an additional runway for unlocking growth, delivering on a growing pipeline and scale from new and existing partnerships with industry leaders Prime Focus, Fujitsu, Magnifi and Avid along with its goal of achieving cashflow breakeven.

 

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for March 27 [intraday]:

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IN CASE YOU MISSED IT

Lithium explorer Chariot Corporation (ASX:CC9) is raising up to $2 million through convertible note financing, with an initial drawdown of $600,000. The structure offers capital flexibility while minimising the dilution associated with a standard equity raise.

Medical technology company Singular Health Group (ASX:SHG) has completed a $500,000 raise through the issuance of over 5 million new shares to Provider Network Solutions (PNS) as part of a cornerstone investment. The company has also issued 50,000 shares from the exercise of options, with the PNS shares subject to a 9-month voluntary escrow.

Scorpion Minerals (ASX: SCN) has secured commitments to raise $250,000 through the issuance of 12.5 million shares at 0.2 cents per share, with proceeds going toward advancing the Murchison Gold Strategy and near-term drilling.

 

At Stockhead, we tell it like it is. While Chariot Corporation, Singular Health Group and Scorpion Minerals are Stockhead advertisers, they did not sponsor this article.

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