Why Are Mesoblast (MSB), Iperionx (IPX), Appen (APX), and Spartan Resources (SPR) Falling Today?

By Jason McIntosh | 14 January 2025

Investors are seeing falling share prices in several ASX-listed stocks today, including Mesoblast Ltd (ASX: MSB), Iperionx (IPX), Appen Ltd (ASX: APX), and Spartan Resources (SPR).

These declines are happening against the backdrop of broader market volatility and sector-specific pressures. Let’s examine the reasons behind these moves and their technical outlook.

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Mesoblast Ltd (ASX: MSB)

Mesoblast shares are down 9.25% to $2.55 following the completion of a significant capital raising. The company raised A$260 million at A$2.50 per share, representing an 11% discount to its last trading price. This discounted price and the associated dilution are key factors driving today’s decline.

The Technical Picture for MSB
Despite the pullback, MSB remains above its rising 50- and 100-day moving averages (MAs), which suggests the stock is potentially still in an uptrend.

MSB’s shares climbed an impressive 120% between December 12 and January 2, making today’s decline appear to be a technical pullback within a rising trend. However, trends can change, so maintaining a robust risk management strategy is essential for navigating potential reversals.

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Iperionx Ltd (ASX:IPX)

IPX shares are down 9.7% to $4.47. While specific news isn’t available for IPX, the recent pullback appears to align with broader market volatility. The ASX 200 has dropped as much as 2% since Friday, impacting many stocks.

The Technical Picture for IPX
IPX’s share price has mostly stayed above rising moving averages for the past 18 months, signaling a technical uptrend. The stock rallied sharply in late December, becoming stretched above its 50-day moving average, which often precedes corrections.

The recent pullback seems reasonable in this context, but the resumption of upward momentum isn’t guaranteed. Risk management strategies, like trailing stops, can help investors protect capital in case the trend weakens.

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Appen Ltd (ASX: APX)

Appen shares are down 6.2% amid a sharp sell-off in the technology sector, with the S&P/ASX 200 Information Technology Index falling 3.35% on Monday. The broader weakness in tech stocks is likely weighing on APX.

The Technical Picture for APX
APX has been a standout performer, rallying over 600% since July 2024 and recently hitting an 18-month high of $3.11. The stock remains above its rising 50- and 100-day moving averages, indicating a continued uptrend.

However, the key question is whether the shares will stabilize around the 50-day moving average. Active investors might consider stop-loss strategies to protect capital if the pullback continues.

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Spartan Resources (ASX:SPR)

SPR’s share price has fallen by 6.6% to $1.48. The pullback, from near a multi-year high, is despite outperforming the broader resources sector over the last 12 months. The stock has demonstrated remarkable strength, but today’s pullback suggests some consolidation.

The Technical Picture for SPR
With rising 50- and 100-day MAs, SPR remains in a technical upward trend. Pullbacks are a natural part of any trend, allowing for consolidation before potentially re-establishing momentum.

However, the stock’s inability to break above its October 2024 high may signal further consolidation ahead. Investors who have followed the trend thus far have likely done well. A key factor has been using an appropriate strategy for giving the stock room to pullback during the inevitable consolidations.

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Broader Market Context

The declines in MSB, IPX, APX, and SPR come amid increased market volatility. The ASX 200 is down 2% since Friday’s open, while the tech-heavy Information Technology Index fell over 3% today. These factors are creating a challenging environment for many stocks.

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Key Takeaways for Investors

1. Technical Uptrends Can Face Pullbacks: Stocks like MSB, IPX, APX, and SPR remain in technical uptrends but are experiencing natural pullbacks.
2. Monitor Moving Averages: Rising MAs can act as a guide for trend strength. Stocks that remain above these levels may resume upward momentum, but nothing is guaranteed.
3. Risk Management Is Crucial: Employing strategies like trailing stops and position sizing helps manage downside risks while staying aligned with market trends.

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The recent pullbacks in MSB, IPX, APX, and SPR are reminders of the dynamic nature of markets. At Motion Trader, we help investors navigate these conditions with systematic, rules-based strategies that focus on minimising risk and maximising opportunity. By staying disciplined, investors can make more informed decisions and better manage their emotions during the market’s inevitable ups and downs.

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Jason McIntosh | Founder, Motion Trader

Jason’s professional trading career began over 3 decades ago. He’s a founder of two stock advisory firms, a listed funds management business, and has helped thousands of investors navigate the stock market. Click here to read Jason’s incredible story of, at age 20, sitting alongside some of the world’s greatest traders (and the life changing experience that came with that).