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Owners of Woolworths Group Ltd (ASX: WOW) shares, get ready to rumble. The company is set to release its earnings for the first half of financial year 2022 on Wednesday.

The six months ended 31 December were a chaotic time for the company as it battled amid outbreaks of COVID-19.

As of Monday’s close, the Woolworths share price was $34.49, 1.41% higher than it was at the end of Friday’s session.

Let’s take a closer look at what we know about the supermarket giant’s impending earnings.

Could this drive the Woolworths share price on Wednesday?

Of course, COVID-19 impacts will likely have impacted Woolworths’ earnings during the first half.

The company provided the market with a trading update in mid-December detailing its struggles against COVID-19’s Delta variant.

Within the update, Woolworths CEO Brad Banducci described the first half as “one of the most challenging halves [the company had] experienced in recent memory”.

“The ongoing material costs of operating in a COVID environment has impacted our expected earnings in H1,” Banducci continued. “COVID has had a significant impact on costs, even more so than last year due to the combination of both direct COVID-related costs, together with the indirect impacts from disruption caused by COVID.”

For the first half, the company expected its Australian Food segment to report around $150 million of additional COVID costs.

Disruptions in stores and distribution centres were expected to add another $60 million to $70 million of costs.  

Woolworths stated it expected its Australian Food segment to report earnings before interest and tax (EBIT) of $1.19 billion to $1.22 billion.

It reported around $1.32 billion of EBIT for the first half of financial year 2021.

Big W, meanwhile, was expected to end the half with EBIT of $20 million to $30 million.

For comparison, it reported $133 million of EBIT for the previous first half.

Additionally, following the challenging period, the supermarket giant will be handing staff a “Christmas thank you” payment worth between $35 million and $40 million. It also invested around $40 million into building its eCommerce abilities during the period.

The Woolworths share price tumbled 7% on the back of the trading update.

What else could be included in Woolies’ earnings?

Other happenings that might find their way to Woolworths’ half-year report include the demerger of its food and hospitality business Endeavour Group Ltd (ASX: EDV).

The business was split from Woolworths late in financial year 2021. This will be the first time the company reports without it. Thus, Woolies’ half-year report might look quite different this year.

On top of that, some brokers, such as Credit Suisse, have dropped their expectations of the supermarket giant.

As The Motley Fool Australia recently reported, the broker’s analysts believe a guidance downgrade could be included in Woolworths’ half-year results.

Additionally, my Foolish colleague Zach Bristow recently reported JP Morgan is also tipping lower earnings for financial year 2022. Though, it’s bullish on the Woolworths share price in the long-term.

The post Own Woolworths (ASX:WOW) shares? Here’s what to expect when the company reports this week appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Is the Woolworths (ASX:WOW) share price a buy or sell right now?
• Is it a buy in 2022? Why this top broker tips 15% upside in Woolworths (ASX:WOW) shares
• Why UBS is warning of more pain for the Coles (ASX:COL) share price
• Own Woolworths (ASX:WOW) shares? Now you also own part of this niche start-up

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Bapcor Ltd (ASX: BAP)

According to a note out of UBS, its analysts have retained their buy rating and $8.10 price target on this auto parts retailer’s shares. Although UBS suspects that Bapcor has lost market share to rival GPC, it is sticking with the company. The broker believes the company is over the worst of its issues and is optimistic that the acceleration of its operational improvement will lead to a market share recovery. The Bapcor share price is currently trading at $6.82.

PWR Holdings Ltd (ASX: PWH)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this automotive cooling solutions company’s shares to $10.05. This follows the release of a half year result which came in well ahead of the broker’s expectations thanks largely to its Motorsports business. Outside this, the broker is positive on the future and believes PWR has strong organic growth potential. The PWR share price is fetching $8.50 today.

QBE Insurance Group Ltd (ASX: QBE)

Analysts at Citi have retained their buy rating but cut their price target on this insurance giant’s shares to $13.70. According to the note, QBE delivered a full year result that fell short of the broker’s estimates. And while it also felt its guidance was a touch soft, Citi saw enough positives to maintain its buy rating. It was pleased with QBE’s premium growth and expects rising interest rates to boost its performance. The QBE share price is trading at $12.09 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why Fortescue, Goodman, Inghams, and QBE shares are dropping
• ASX 200 (ASX:XJO) midday update: QBE sinks but Magellan rockets
• QBE (ASX:QBE) share price sinks 9% on FY21 earnings miss
• 5 things to watch on the ASX 200 on Friday
• 3 ASX shares to buy before the market rockets up again

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor and PWR Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There were some telling moves among S&P/ASX 200 Index (ASX: XJO) gold shares today.

Here’s what we mean.

Right up until lunchtime, ASX 200 gold shares were leading the charge higher, even as the benchmark index itself was mired in the red.

Some two and a half hours after the opening bell, the Newcrest Mining Ltd (ASX: NCM) share price was up 2.1%; Evolution Mining Ltd shares were up 3.2%; and the Northern Star Resources Ltd (ASX: NST) share price had gained 4.0% for the day.

The broader collection of ASX gold shares tracked by the S&P/ASX All Ordinaries Gold Index (ASX: XGD) was up 2.2% at this time.

As for the ASX 200? It was down 0.8% in intraday trading.

Then something happened to turn it all upside down. Or right side up, depending on your perspective.

How France’s Macron deflated today’s ASX 200 gold share rally

Gold, as you’re likely aware, has benefited from its haven status in recent weeks as investors fear Russia may invade Ukraine.

This has seen the gold price lift to today’s US$1,895 per ounce, up from US$1,791 per ounce on 28 January, according to data from Bloomberg.

And it’s helped lift the fortunes of ASX 200 gold shares along the way.

When investors tuned into their screens this morning, they were greeted with more news that a Russian invasion of Ukraine was looking increasingly likely.

Hence, many shares sold off while gold stocks did well.

Then, around 11:30am AEDT, news broke that French President Emmanuel Macron had worked out a summit meeting between US President Joe Biden and Russian President Vladimir Putin. However, it’s a deal that won’t go ahead if Russia invades Ukraine.

While no dates have been set, the news clearly relieved jittery investors.

Here’s what happened next

Since the summit announcement hit the newswires, the ASX 200 has rebounded from a loss of 0.8% to currently being up 0.3%.

The All Ords gold index went from a gain of 2.2% to a gain of 0.9%.

What about the ASX 200 gold shares named above?

The Newcrest share price gains slipped from 2.1% to 1.2%. Evolution’s share price hike dropped from 3.2% to 2.3%. And the Northern Star share price gains fell from 4.0% to 1.7%.

Still, all of these ASX 200 gold shares are still in the green.

But if you were wondering just how much impact geopolitical wrangling can have on specific shares and the broader market, this makes an excellent intraday case study.

The post Here’s why ASX 200 gold shares turned sharply lower mid-day today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Here’s why ASX 200 gold shares are leaping higher today
• 5 things to watch on the ASX 200 on Friday
• Newcrest (ASX:NCM) share price lifts despite 46% profit drop
• 5 things to watch on the ASX 200 on Thursday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has kicked off the week enjoying a decent day of green here on the ASX boards this Monday. At the time of writing, the ASX 200 is up by 0.23% at 7,239 points.

But let’s dive deeper and check out the ASX 200 shares that are currently at the top of the market’s volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume so far on Monday

A2 Milk Company Ltd (ASX: A2M)

A2 Milk is our first share of the day today. This ASX 200 dairy share has seen a sizeable 14.41 million shares bought and sold so far. This volume is almost certainly the result of the company’s half-year earnings report which was delivered this morning.

Although A2 Milk reported a mixed bag of results, investors seem to approve of what the company had to say. A2 Milk shares are currently up 11.13% at $5.89 each as it presently stands. It’s these factors that are the likely reason why A2 Milk makes the list today.

AGL Energy Limited (ASX: AGL)

ASX 200 energy utility company AGL is next up today. AGL has had a hefty 14.57 million of its shares trade on the markets so far this Monday. This is probably a byproduct of the blockbuster machinations that have gone on with this company. 

As my Fool colleague James covered earlier, AGL received a takeover approach from billionaire Mike Cannon-Brookes and Brookfield Asset Management. Even though AGL quickly rejected the offer of $7.50 per share, the AGL share price is still up a pleasing 12.3% at the time of writing at $8.04 a share. This is probably why we are seeing so many AGL shares find a new home.

Tyro Payments Ltd (ASX: TYR)

ASX 200 payments company Tyro is our final and most traded share of the day this Monday. So far, a whopping 26.12 million Tyro shares have swapped hands. Again, we seem to have earnings to thank for this move. Tyro also reported its half-yearly results this morning.

But unfortunately, they haven’t elicited the same response from investors. Tyro shares are presently down a nasty 26.8% at $1.60 a share, the lowest level since the 2020 COVID crash. This is why Tyro is topping today’s trading volume charts. 

The post These 3 ASX 200 shares are topping the volume charts this Monday appeared first on The Motley Fool Australia.

More reading

• Why Altium, PointsBet, Tyro, and Zip shares are sinking today
• Why A2 Milk, AGL, Endeavour, and TPG shares are charging higher
• Why inflation doesn’t impact all ASX shares equally
• A2 Milk (ASX:A2M) share price jumps 12% on ‘improved’ outlook
• Do ASX investors simply have to get used to volatility?

Motley Fool contributor Sebastian Bowen owns A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tyro Payments. The Motley Fool Australia has recommended A2 Milk and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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After a poor start, in afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a gain. At the time of writing, the benchmark index is up 0.3% to 7,242.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

Altium Limited (ASX: ALU)

The Altium share price is down 6% to $32.44. This morning the electronic design software provider reported a 28% increase in half year revenue to US$102 million and a 38% lift in net profit after tax to US$23 million. While this was strong, its guidance appears to have disappointed the market. Management now expects to hit the high end of its revenue guidance range, but only the low end of its margin guidance range. This implies a miss on earnings based on consensus forecasts.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is down 11% to $4.00. Investors have been selling this sports betting company’s shares following the release of a disappointing update form rival DraftKings. Its shares crashed 22% on the Nasdaq on Friday after revealing a loss of US$326 million for the fourth quarter. It also warned that it was likely to make a loss of US$1 billion in FY 2022. This is being driven largely by marketing activities.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price has crashed 28% to $1.56. The catalyst for this was the release of the payments company’s half year results. Although Tyro reported a 31% increase in transaction value to $15.8 billion, its EBITDA tumbled 67% to just $2.8 million. Tyro’s margins were impacted by investments in growth initiatives, wage inflation, and the removal of JobKeeper.

Zip Co Ltd (ASX: Z1P)

The Zip share price has tumbled 7% to $2.38. This follows the release of an update from the buy now pay later (BNPL) provider ahead of its half year results later this week. While that update revealed strong top line growth, it was the bottom line which spooked investors. Due partly to Zip’s net bad debts rising to 2.6% of transaction volumes, the company expects to post a cash EBTDA loss of $108.1 million for the half.

The post Why Altium, PointsBet, Tyro, and Zip shares are sinking today appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Monday
• Why is the PointsBet (ASX:PBH) share price crashing 11% today?
• Tyro (ASX:TYR) share price plummets 25% as COVID takes its toll
• Zip (ASX:Z1P) share price sinks to new 52-week low after revealing rising debts and big loss
• ASX 200 (ASX:XJO) midday update: AGL rejects takeover offer, A2 Milk shoots higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Pointsbet Holdings Ltd, Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The IGO Ltd (ASX: IGO) share price is sliding after the company confirmed it’s in discussions to acquire one of the world’s richest copper mines.

The exploration and mining company responded to rumours this morning, saying it’s in exclusive talks to buy the CSA Copper Mine from Glencore.

But the potential acquisition hasn’t excited the market. The IGO share price has tumbled 6.2% to trade at $11.49, at the time of writing.

Let’s take a closer look at today’s news from the $9 billion resources giant.

IGO confirms more acquisition discussions

The IGO share price is struggling today after the company confirmed it is making yet another move to acquire a major Australian resource.

It’s currently digging through the copper mine’s books as part of acquisition discussions. In the meantime, IGO has warned investors not to get too excited just yet.

The company said it hasn’t made any decisions and often partakes in acquisition talks.

IGO’s confirmation of takeover discussions followed reporting by the Australian Financial Review claiming IGO was named the preferred bidder for the CSA Copper Mine.

Additionally, according to the publication, IGO is expected to undergo an equity raise to pay for it.

The mine, at Cobar in regional New South Wales, is reportedly worth upwards of $1 billion.

As of 31 December 2021, IGO had $570 million of cash and no debt.

The CSA mine produces around 50,000 tonnes of copper annually with average grades of 5% to12%. According to Glencore, that makes it one of the world’s richest copper mines.

The news comes just days after Fortescue Metals Group Limited (ASX: FMG) boss Andrew ‘Twiggy’ Forrest gave the ‘thumbs up’ for IGO’s proposed $1 billion acquisition of Western Areas Ltd (ASX: WSA). Forrest confirmed his intent to vote in favour.

Twiggy’s investment vehicle, Tattarang, holds a 9.8% stake in the nickel producer.

IGO placed an all cash $3.36 per share offer for the company in December.

IGO share price snapshot

Today’s dip has almost wiped the IGO share price gains for the 2022 calendar year.

The company’s share price is now less than 1% higher than it was at the start of this year.

However, the exploration and mining company’s stock has gained 74% over the last 12 months.

The post IGO (ASX:IGO) share price tumbles 6% on new acquisition talks appeared first on The Motley Fool Australia.

More reading

• IGO (ASX:IGO) share price lifts as Twiggy greenlights nickel acquisition
• Why is this broker so bullish on the IGO (ASX:IGO) share price?
• Leading brokers name 3 ASX shares to sell today
• IGO (ASX:IGO) share price lower as revenue slides 18%

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Dicker Data Ltd (ASX: DDR) share price is pushing higher today following the company’s acquisition announcement.

During early afternoon trade, the IT distributor’s shares are exchanging hands for $14.60, up 1.39%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is hovering around 7,230 points, up 0.12% for the day.

Dicker Data moves to takeover Hills’ Security and IT division

Investors are bidding up the Dicker Data share price following the latest announcement by the company.

According to its release, Dicker Data advised it has entered into a conditional business sale agreement with ASX-listed Hills Ltd (ASX: HIL).

Under the deal, Dicker Data acquired the Security and Information Technology (SIT) distribution division of Hills for around $20 million.

Dicker Data stated that the purchase price represents a premium to the net assets sold. Thus, the final amount is largely dependent upon inventory related balances at the completion date.

Headquartered in New South Wales, Hills is Hills is the largest distributor of physical security products in the Australian market.

In FY21, the SIT division generated $123.2 million in revenue, comprising $98.7 million to security and $24.4 million to IT products.

Once the acquisition is finalised, Dicker Data will be the leading distributor in the SIT space. This will see the company gain not only the business, but inventory, customer and vendor relationships, employees, along with other net assets of the business.

Notably, the Hills SIT division currently has over 2,000 customers, of which 85% are new to Dicker Data. This is expected to grow the company’s total active customer base to over 10,000 businesses across Australia and New Zealand.

The proposed acquisition is subject to Hills shareholder approval, which will be at a general meeting sometime in April 2022.

What did management say?

Dicker Data chair and CEO, David Dicker commented:

This will add an entirely new Business area to our company and introduce us to a wide range of new customers, as well as adding significant new revenue with the promise of significant expansion on that, going forward.

Ultimately, we have determined that a change of ownership to an organisation with strong capability in technology distribution and solutions, is in the best interests of the Hills shareholders and the future success of the SIT division, its people, suppliers and customers.

Despite being flat in 2022, the Dicker Data share price has risen by almost 30% since this time last year.

The post ‘Adding significant revenue’: Dicker Data (ASX:DDR) share price edges higher on takeover announcement appeared first on The Motley Fool Australia.

More reading

• Why is the Dicker Data (ASX:DDR) share price frozen today?
• Here are the top 10 ASX shares today
• Dicker Data (ASX:DDR) shares fly 8% on dividend announcement
• Why CBA, Computershare, Dicker Data, and Temple & Webster shares are on fire today
• Here’s why the Dicker Data (ASX:DDR) share price is having such a great week

Motley Fool contributor Aaron Teboneras owns Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Dicker Data Limited. The Motley Fool Australia owns and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has fought back from a poor start and is pushing higher. At the time of writing, the benchmark index is up 0.3% to 7,242.7 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price has surged 11% higher to $5.88. This follows the release of the infant formula company’s half year results. Although A2 Milk reported a 53.3% decline in its net profit to NZ$56 million, management’s upbeat commentary appears to have offset this. It is expecting a stronger than previously expected second half thanks to growth in China label and English label infant formula.

AGL Energy Limited (ASX: AGL)

The AGL share price has jumped 12% to $8.01. This morning the energy giant received and rejected a takeover approach from a consortium led by Brookfield Asset Management and Atlassian co-founder Mike Cannon-Brookes’ private investment firm, Grok Ventures. At $7.50 per share, AGL believes the offer undervalues the company. It intends to push ahead with its demerger plans instead.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is up 10% to $7.18. This follows the release of the drinks company’s half year results. Although Endeavour reported broadly flat revenue at $6.3 billion, that couldn’t stop it from growing its net profit after tax by 15.6% to $311 million. The latter was driven by premiumisation trends and a reduction in promotional spend.

TPG Telecom Ltd (ASX: TPG)

The TPG share price is up 3% to $5.97. This morning the telco announced a surprise deal with rival Telstra Corporation Ltd (ASX: TLS). Telstra and TPG have signed a ten-year regional Multi-Operator Core Network (MOCN) commercial agreement. This will see TPG gain access to around 3,700 of Telstra’s mobile network assets in regional and urban fringe areas, increasing its current 4G coverage from around 96% to 98.8% of the population.

The post Why A2 Milk, AGL, Endeavour, and TPG shares are charging higher appeared first on The Motley Fool Australia.

More reading

• A2 Milk (ASX:A2M) share price jumps 12% on ‘improved’ outlook
• ASX 200 (ASX:XJO) midday update: AGL rejects takeover offer, A2 Milk shoots higher
• Telstra (ASX:TLS) share price rises on surprise TPG deal
• Crack a bottle! Endeavour (ASX:EDV) share price jumps 11% on profit lift
• The week ahead: Earnings, wages and business conditions. Scott Phillips on Nine’s Late News

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you have gone about your investment in 2022 so far without hearing the word ‘inflation’, then you’d be doing very well. Inflation, and the prospect of higher interest rates that usually come with it, has been a dominant theme of the year so far. Speculation that central banks around the world will raise interest rates and curb quantitative easing (QE) programs has been spooking investors for months now, and is a major factor in the volatility we have seen on the share market recently.

So if higher inflation is coming, will it really be terrible for all ASX shares?

Well, the answer is complicated. Inflation is a challenge for all businesses, seeing as it comes with rising input costs. In a high inflation environment, costs such as labour, transport and raw materials typically rise and keep rising. That means a business has to match these rises with passed-on price increases of its own. Not exactly a recipe to keep customers happy and loyal.

But when it comes to a business’s ability to pass these costs on, some businesses are more equal than others.

Fund maanger: How to beat inflation in your ASX share portfolio

Tim Carleton is principal at fund manager Auscap Asset Management. He recently gave an interview with the Australian Financial Review (AFR). He says that some companies can handle inflation better than others. And finding them isn’t always difficult:

It’s not rocket science… It’s finding companies that have proven themselves to be high-quality companies. And broadly, you’ve got a bit of a cheat function to determine whether something’s a high-quality company, and that’s go and have a look at its statutory ROI [return on investment]…

Everyone talks about moats and competitive advantages. Well, if they have a demonstrably higher ROI than their peers, there’s obviously something there.

So there you have it, what to look out for if you’re searching for an inflation-proof investment in this Brave New World of inflation we are entering. For starters, Carleton names BHP Group Ltd (ASX: BHP) and REA Group Limited (ASX: REA) as two shares that he sees as fitting into the above criteria.

But if you’re still a bit worried about what the future holds, remember this. The ASX and global markets have seen periods of high inflation before. And while it has always caused some disruptions, markets have never failed to move higher, sooner or later. That’s a sentiment Mr Carleton echoes:

The reality is, the Aussie market, the US market, most markets have climbed walls of worry in the last 100 years, and still delivered the best returns over different asset classes.

A silver lining for every cloud!

The post Why inflation doesn’t impact all ASX shares equally appeared first on The Motley Fool Australia.

More reading

• Fund manager reveals one key metric in finding quality ASX shares during a correction
• Do ASX investors simply have to get used to volatility?
• ASX 200 (ASX:XJO) midday update: AGL rejects takeover offer, A2 Milk shoots higher
• Is the BHP (ASX:BHP) record interim dividend the best use of the miner’s cash?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Mesoblast Limited (ASX: MSB) share price is marching higher today, up 2%.

Mesoblast shares closed Friday at $1.12 and are currently trading for $1.14.

Below we look at the clinical trial results that appear to be spurring investor interest in the ASX biotech share.

What trial results were announced?

The Mesoblast share price is in the green after the company reported positive results from its first patient cohort in a randomized, controlled study of remestemcel-L.

Mesoblast said that remestemcel-L was administered by direct endoscopic delivery to areas of inflammation in patients with medically refractory ulcerative colitis. You may be more familiar with the other term for the disease, Crohn’s colitis.

According to the release, rapid mucosal healing and disease remission were recorded following a single local delivery of remestemcel-L by colonoscopy. Without treatment, the patients are at high risk of needing surgery which, Mesoblast said, can have a “devastating impact on quality of life”.

Commenting on the trial, Amy Lightner, Associate Professor of Surgery at Cleveland Clinic said:

Mesenchymal stromal cells [remestemcel-L] offer a safe therapeutic for the treatment of medically refractory Ulcerative Colitis and Crohn’s colitis,” said Dr. Lightner. “Early data suggests improved clinical and endoscopic scores as early as two weeks following remestemcel-L delivery.

Mesoblast’s chief medical officer, Eric Rose added:

This randomized controlled trial is the first to evaluate local delivery of remestemcel-L directly into the inflamed colon, using objective endoscopic measures of mucosal healing, in patients with colitis who are at high risk of surgical resection of their colon.

One of the key results of the interim analysis performed in the first 12 enrolled patients was that none of them displayed any treatment related adverse effects.

And all of them had improved clinical and endoscopy scores within two weeks of treatment.

Mesoblast share price snapshot

The Mesoblast share price has struggled over the past 12 months, down 56%. That compares to a gain of 6% posted by the All Ordinaries Index (ASX: XAO) in that same period.

So far in 2022, Mesoblast shares are down 19%.

The post Here’s why the Mesoblast (ASX:MSB) share price is climbing today appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Here’s why the Mesoblast (ASX:MSB) share price leapt higher today
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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