US equity markets trended higher in March, despite financial concerns over sequestration, higher payroll taxes, renewed European debt woes and a sluggish US fourth-quarter GDP growth rate, which was revised slightly higher from 0.1% to 0.4%. Instead, investors focused on the stronger consumer sector, including higher home prices, personal spending and retail sales, which should lead to a more productive first-quarter GDP growth rate. For the month, the Dow and S&P 500 climbed 3.7% and 3.6%, respectively, to reach new record highs since October 2007. The NASDAQ climbed 7.1% in March. For the first quarter, the Dow, S&P 500 and NASDAQ are up 11.3%, 10.0% and 8.2%, respectively.

All four IBO Stock Indexes traded higher this month. Similar to the Dow and S&P 500, the Laboratory Instrumentation Stock Index expanded 5.5% to reach a new high for the first time since October 2007. The Process/Metrology/Motion Instrumentation, Lab Consumables/Equipment and Diversified Instrumentation Stock Indexes increased 4.5%, 2.5% and 0.8%, respectively.

Laboratory Instrumentation Stock Index

In March, the Laboratory Instrumentation Index improved 5.5% to close at 782.93. Thirteen companies were in positive territory, and five declined, led by Pressure BioSciences, which fell 28%. Affymetrix recorded the largest gain for both the month and year, having risen 16% and 49%, respectively. Year to date, the Index has advanced 18.2%, with 13 companies trading higher, four losing ground and MOCON unchanged. Transgenomic has sustained the largest decline, falling 35%.

Several companies in the Index fell short of quarterly EPS expectations. Transgenomic missed adjusted fourth-quarter 2012 EPS estimates on March 13, leading shares down 8.3% the next day. On the positive side, on March 13, the company secured an $8.0 million credit facility. Sequenom fell 4.0% on March 8 after reporting a larger-than-expected adjusted fourth-quarter 2012 loss. Given the high volume for its diagnostics testing services and increased personnel and marketing expenses, the company expects its first-quarter net loss to remain near current levels. The company delayed its annual SEC 10-K filing on March 18 due to accounting errors for the years 2009 through 2011. Shares fell 4.5% the next day.

In other financial news, on March 1, MOCON announced that it raised its dividend by 5% to $0.11. On March 14, Illumina lost a patent infringement case (see page 2), leading shares down 0.9% the next day. On March 25, Harvard Bioscience affirmed the spin-off of Harvard Apparatus Regenerative Technology, which provides “bioartificial” organs such as replacement tracheas, following its IPO in early April. The company plans to offer 1.7 million shares priced at $10–$12 per share. Shares rose 1.9%. On March 21, Sequenom announced the launch of a new cystic fibrosis–carrier screen test, yet shares fells 1.2%

UBS upgraded Illumina on March 1 from “Neutral” to “Buy,” and raised its price target by 9% to $61.00. On the same day, Piper Jaffray upgraded Sequenom from “Neutral” to “Overweight,” and raised its price target by 30% to $6.50.

Process/Metrology/Motion Instrumentation Stock Index

The Process/Metrology/Motion Instrumentation Stock Index increased 4.5% and 13.4% for the month and quarter to 642.17, respectively. Five companies advanced and two contracted for both the month and year. Veeco Instruments had the highest return for both the month and year, having climbed 20% and 30%, respectively. SDIX is down 8% for both periods.

Northland Securities initiated coverage of Veeco with a “Market Perform” rating on March 1. Canaccord Genuity upgraded the company on March 25 from “Sell” to “Buy,” leading shares up 8.5%.

Lab Consumables/Equipment Stock Index

The Laboratory Consumables/Equipment Stock Index grew 2.5% to 743.09 this month. Four companies increased in value, and three contracted. Year to date, the Index is up 13.3%, with five companies trading higher and two declining. Life Technologies gained the most ground for both the month and year, having rising 11% and 32%, while Enzo Biochem has dropped 16% and 7%, respectively.

Life Technologies climbed 3.3% and 2.9% on March 5 and March 12, respectively, due to speculation over several investment firms entering the bidding process to buy the company (see IBO 3/15/13). Shares further rose 2.7% on March 20 as news circulated that Roche could potentially make a bid (see page 2). However, on March 22, rumors suggested that the private equity firms retracted from the auction activity. Shares traded only marginally lower. Enzo Biochem reported on March 12 a wider-than-expected fiscal second-quarter EPS loss of $0.14 due to operational impacts from Hurricane Sandy and higher litigation expenses. Shares fell 5.9% the next day.

Life Technologies was downgraded by Cowen on March 21 from “Buy” to “Hold,” and by Citigroup on March 25 from “Buy” to “Neutral.” Bank of America downgraded Sigma-Aldrich on March 25 from “Neutral” to “Underperform.”

Diversified Instrumentation Stock Index

The Diversified Instrumentation Stock Index rose 0.8% in March to 169.29. Seven companies advanced, while Illinois Tool Works slipped 1%. For the quarter, the Index is up 7.0%, with all eight companies in positive territory. Teledyne Technologies leads the Index for both the month and year, having risen 7% and 21%, respectively.

Despite Citigroup’s upgrade on the Multi-Industry and Electrical Equipment sector on March 18 from “Neutral” to “Positive,” Roper Industries and Danaher traded slightly lower.

International

In March, four Pacific Region companies increased in value and three declined. Shimadzu had the highest return, climbing 15%, while Techcomp has dropped 20% and 25% for the month and year, respectively. However, the other six companies have positive returns for the first quarter, led by Precision System Science, which has gained 274%.

Seven European companies in the IBO stock table improved in March, six declined and Scientific Digital Imaging was unchanged. Exiqon had the largest return, advancing 16%, while Renishaw fell 6%. For the year, 11 companies have recorded gains, and three have declined. Porvair has advanced the most, having gained 35%, and Alpha MOS is down 15%.

Abcam reported on March 5 that six-month EPS ending December 31, 2012, grew 15% to £0.08 ($0.13). Based on continuing operations, Tecan reported on March 7 an EPS decline of 6.8% for 2012 to CHF 3.84 ($4.09) due to currency hedging gains in 2011. The company projected a 50 basis point increase in operating profit margin to roughly 14% of sales, and proposed a 20% annual dividend increase to CHF 1.50 ($1.60). Shares climbed 4.7%.

In other news, on March 1, Exiqon issued DKK 15 million ($2.6 million) in corporate bonds in a private offering. On March 5, Sartorius proposed a 17% annual dividend increase to €0.96 ($1.23). Shares advanced 2.6% the next day.

Barclays Capital upgraded Halma on March 8 from “Equal Weight” to “Overweight,” and raised its price target by 25% to £5.40 ($8.06). On March 25, Biotage provided a notice of its upcoming annual shareholder meeting, which will address the company’s proposed 2012 dividend. The dividend was increased 25% to SEK 0.50 ($0.08) per share following the company’s new policy to distribute at least 50% of its net profit as dividends.