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The ASX boards have welcomed some new exchange-traded funds (ETFs) today. Yes, the BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV) joins the share market. It lists alongside another new BetaShares fund, the BetaShares Future of Payments ETF (ASX: IPAY).

So at the time of writing, DRIV units have debuted at $11.78 per unit and are currently trading at $11.79, up a solid 0.08% after their first few hours of ASX life.

So we took a quick look at DRIV a few days ago when it became clear this ETF was headed for the ASX boards. But if you missed that coverage, here’s a quick refresh. So BetaShares tell us that this ETF is designed to track the Solactive Future Mobility Index. This will, in the provider’s words, give “exposure to a portfolio of global companies at the forefront of innovation in automotive technology”. It holds 50 companies right now.

DRIV comes off the ASX line

Its top 10 holdings, and weightings, are as follows:

1. Tesla Inc (NASDAQ: TSLA) with a portfolio weighting of 9.5%
2. Nio Inc (NYSE: NIO) with a weighting of 6.4%
3. Aptiv plc (NYSE: APTV) with a weighting of 6.4%
4. Uber Technologies Inc (NYSE: UBER) with a weighting of 6.1%
5. Volkswagen AG with a weighting of 5.6%
6. Volvo AB with a weighting of 4.7%
7. Paccar Inc (NASDAQ: PCAR) with a weighting of 4.4%
8. BYD Co Ltd with a weighting of 4.2%
9. Li Auto Inc with a weighting of 3.9%
10. Xpeng Inc (NYSE: XPEV) with a weighting of 3.6%

So as you can see, many famous names there. At the top of the pile, we have the well-known electric vehicle manufacturers Tesla and Nio. Nio is a giant Chinese company often called the ‘Tesla of China’.

Aptiv is a US auto parts company, while Uber is of course the eponymous ride-sharing provider.

Volkswagen and Volvo need no introduction as conventional vehicle brands, while Paccar is a manufacturer of diesel trucks with brand names like Kenworth and Peterbilt.

BYD, Li Auto and Xpeng are all Chinese companies with expanding electric vehicle manufacturing operations.

Geographically, DRIV is weighted 44% towards US companies and 20.3% towards Chinese companies. Germany, Ireland, Europe, Japan and South Korea make up the vast majority of the rest.

Although this DRIV ETF only makes its ASX debut today, the index that it tracks has reportedly returned an average of 23.5% since its inception in May 2017.

The BetaShares Electric Vehicles and Future Mobility ETF charge a management fee of 0.67% per annum (or $67 per year for every $10,000 invested).

The post Meet DRIV (ASX:DRIV), the electric vehicle ETF that just listed on the ASX appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price descends on $1.1bn half year loss guidance
• Encounter Resources (ASX:ENR) share price blasts 15% higher on copper update
• Here’s why the IGO (ASX:IGO) share price is not going anywhere today
• CBA (ASX:CBA) share price up amid another loan rate hike
• ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss

Motley Fool contributor Sebastian Bowen owns Tesla. 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 Qantas Airways Limited (ASX: QAN) share price has come under a spot of pressure on Thursday.

In morning trade, the airline operator’s shares were down almost 2.5% to $4.76.

The Qantas share price has since recovered a touch but remains down 1% at $4.82 currently.

Why is the Qantas share price descending?

Investors have been selling down the Qantas share price today after it revealed that the first half of FY 2022 has been incredibly turbulent.

In fact, Qantas’ CEO, Alan Joyce, labelled the period “one of the worst halves of the entire pandemic.”

This was due largely to most states having their borders closed and the majority of Australians being in lockdown. Things were so bad that Qantas’ capacity fell to around 30% of pre-COVID levels for several months.

This ultimately led to Qantas revealing that it expects to post an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) loss in the range of $250 million to $300 million for the first half.

And if you add in non-cash depreciation and amortisation costs, this half year loss spirals to over $1.1 billion.

The positives

Potentially preventing the Qantas share price falling further was news that the company has been able to accelerate the repair of its balance sheet. So much so, it expects to finish the first half with a materially better net debt position than it had prior to the start of Delta variant lockdowns in June. Qantas expects its net debt to be $5.65 billion at the end of December.

Furthermore, the airline’s liquidity remains strong, with cash of $2.6 billion and undrawn debt facilities of $1.6 billion.

Another positive is the outlook for domestic flying. Qantas expects domestic flying to be ~75% of pre-COVID levels by the end of December, before rising to more than 100% in February 2022.

Shareholders will no doubt be hoping this proves accurate and supports a similar recovery in the Qantas share price in the coming months.

The post Qantas (ASX:QAN) share price descends on $1.1bn half year loss guidance appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss
• Qantas (ASX:QAN) share price on watch after ‘one of the worst halves of the entire pandemic’
• 5 things to watch on the ASX 200 on Thursday
• Qantas (ASX:QAN) share price struggles despite ‘green fuel’ news
• Zip (ASX:Z1P) shares just topped these end-of-year rankings

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The Encounter Resources Ltd (ASX: ENR) share price is rocketing on Thursday. This comes after the company announced it has received positive assay results over the Sandover project in the Northern Territory.

At the time of writing, the exploration and resource development company’s shares are up 15.38%, trading at 15 cents apiece.

What did Encounter announce?

The company has confirmed high-grade copper mineralisation at Sandover.

In today’s release, Encounter advised that recent surface sampling and mapping have returned up to 20.9% copper mineralisation. This is spread across 4 separate areas around 6km apart at the Sandover project.

Encounter noted each site comprised a red-bed sandstone sequence with multiple, narrow grey shale units containing copper oxide mineralisation.

The next steps will see the company engage with experts to conduct further on-ground mapping and sampling activities. Planned to start in March/April 2022, the exploration program will focus on identifying where these units intersect along the basin forming structures. The company believes these areas have the potential to host major mineral deposits.

Management commentary

Encounter managing director Will Robinson said:

The confirmation of outcropping high-grade copper over a large area is a promising start to exploration at Sandover.

Sandover covers a Zambian copper belt aged, sub-basin on the southern margin of the Georgina Basin, approximately 170km north of Alice Springs. Access is excellent with the Stuart Highway and Ghan railway extending through the western margin of the project. Further areas of interest have been identified at Sandover and will be sampled at the start of the 2022 field season.

We are engaging with experts in Zambian style copper deposits to assist in the design of exploration programs to fast track this emerging copper opportunity in the Northern Territory.

About the Encounter share price

While the Encounter share price has accelerated today, the same cannot be said for the past year. In the last 12 months, the company’s shares are down roughly 3%, and almost 8% lower for 2021.

Encounter is a small-cap ASX share, valued at around $47.52 million. The company has approximately 316.82 million shares outstanding.

The post Encounter Resources (ASX:ENR) share price blasts 15% higher on copper update appeared first on The Motley Fool Australia.

More reading

• Here’s why the IGO (ASX:IGO) share price is not going anywhere today
• CBA (ASX:CBA) share price up amid another loan rate hike
• ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss
• This Bitcoin (CRYPTO:BTC) crash is a Christmas gift for the rich
• Why is the Scentre (ASX:SCG) share price climbing today?

Motley Fool contributor Aaron Teboneras 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 Scentre Group (ASX: SCG) share price is in the green this morning despite no news having been released by the company.

Though, it might be word from the company’s real estate investment trust (REIT) peers that has boosted the market’s sentiment for the retail property group.

Right now, the Scentre share price is $3.12, 0.65% higher than its previous close.

However, earlier today the REIT’s stock reached $3.25, representing a 4.8% gain.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.33%.

Let’s take a look at what might be helping drive the value of Scentre’s shares higher on Thursday.

Scenter share price gains on Thursday

The Scentre share price is on the way up alongside those of Centuria Industrial REIT (ASX: CIP) and Vicinity Centres (ASX: VCX) today.

Both Centuria and Vicinity’s stock is being boosted by news their asset valuations have increased.

Centuria has led the charge, boasting a valuation increase of 9.6%, or $281 million.

Meanwhile, Vicinity announced a preliminary asset valuation increase of $309 million – a 2.2% boost to its book values.

Right now, the Vicinity share price is 1.59% higher, while that of Centuria is up 1.01%.

Though, those gains aren’t the ones leading the S&P/ASX 200 A-REIT Index‘s (ASX: XPJ) 1.15% surge.

The Stockland Corporation Ltd (ASX: SGP) share price is leaving those of its peers in the dust today. It has soared 3.75% at the time of writing.

The company’s stock is being driven higher on news of its 2021 final dividend, which will see 12 cents deposited into shareholders’ pockets for every security they hold in the REIT.

As The Motley Fool Australia reported this morning, that sees Stockland’s total dividends for 2021 nearing pre-COVID-19 levels.

Thus, the Scentre share price might be being boosted by positive sentiment surrounding the ASX’s REIT sector today.

Today’s increase brings its year to date gains to 12%. It has also increased 3% since this time last month.

The post Why is the Scentre (ASX:SCG) share price climbing today? appeared first on The Motley Fool Australia.

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• Own the Vanguard Australian Property ETF (ASX:VAP)? Here’s what you’re invested in
• Only a few ASX 200 companies have received this honour and Scentre (ASX:SCG) just joined them
• 2 high yield ASX dividend shares named as buys

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 IGO Ltd (ASX: IGO) share price is frozen today at $10.63 per share.

The S&P/ASX 200 Index (ASX: XJO) resource explorer and producer requested a trading halt today “pending an announcement in relation to a potential acquisition“.

What other ASX resource share is frozen today?

Not coincidentally, the Western Areas Ltd (ASX: WSA) share price is halted alongside the IGO share price today as well.

In its ASX announcement this morning, Western Areas said it was requesting the pause in trading “pending an announcement by the company regarding a potential change of control transaction involving the company”.

The Motley Fool first reported on early news of IGO’s interest in acquiring rival Western Areas in exchange for shares back on 19 August.

At the time IGO acknowledged its interest, saying, “IGO confirms that it is in preliminary discussions with Western Areas in relation to a change of control proposal and the basis upon which engagement and due diligence could proceed.”

The IGO share price tumbled 6% that day while Western Areas shares leapt 13% higher.

Now, as the Australian Financial Review reports, IGO has “agreed an all-cash takeover offer” for Western Areas. “It is understood the bid values Western Areas at more than $3.30 a share.”

Western Areas was trading for $3.24 when markets closed yesterday.

According to the AFR, “IGO’s expected to fund the bid with some new debt and existing cash reserves. The bid would value Western Areas at more than $1.1 billion. Western Areas is expected to tell shareholders to accept the offer.”

Stay tuned!

IGO share price snapshot

The IGO share price has been charging higher over the past 12 months, up 66%. By comparison the ASX 200 has gained 9% since this time last year.

Over the past month IGO shares are up 8%.

Earlier this month, broker Citi upgraded the company’s shares to a buy rating from neutral with a target for the IGO share price of $12.40.

The post Here’s why the IGO (ASX:IGO) share price is not going anywhere today appeared first on The Motley Fool Australia.

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• Is the IGO (ASX:IGO) share price a better buy than Allkem?
• Why Hipages, IGO, Talga, and Vulcan shares are storming higher
• IGO (ASX:IGO) share price storms higher on broker upgrade
• ASX 200 (ASX:XJO) midday update: Sydney Airport takeover update, Santos falls
• Top ASX shares to buy in December 2021

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 Commonwealth Bank of Australia (ASX: CBA) share price is currently up, slightly. Australia’s biggest bank increased its interest rate yet again. That’s despite the S&P/ASX 200 Index (ASX: XJO) being down more than 0.10%.

Interest rates are going higher at the big four bank for both owner-occupiers and investors for the fourth time in the last several weeks.

CBA hikes interest rates

For owner-occupiers, CBA’s fixed rate increased by 0.05% from 2.49% to 2.54%. The 3-year fixed rate rose 0.15% from 2.99% to 3.14%. The 4-year fixed rate grew 0.25% from 3.09% to 3.34% according to RateCity.

To put into context how much the rates have changed, since 14 October, Rate City notes CBA’s 3-year rate has increased by 0.95%, or 95 basis points.

Whilst today’s increase is not large, RateCity.com.au research director, Sally Tindall commented that the hikes are adding up:

The spike in the cost of funding has sent fixed rates soaring, with both CBA and Westpac hiking fixed rates four times in the last two months. As a result, CBA’s 4-year rate has risen by over a full percentage point in this time.

CBA’s fixed rates with terms of three years and more are now higher than pre-pandemic levels.

These fixed rates hikes aren’t isolated to the big four banks. The rate rises are coming in across the board from lenders big and small and we expect them to continue.

Anyone in CBA’s queue for a fixed rate who didn’t pay a rate lock fee will be particularly grumpy at today’s news.

How much will borrowers be paying now?

According to RateCity, the average borrower taking out a $500,000, 3-year fixed rate loan with CBA today will be paying $250 more a month than someone who took out the same loan two months ago.

In other words, they’ll have to pay a total of $3,000 a year extra, which is a sizeable amount of most Aussie budgets.

Global interest rates are heading higher too

The US Federal Reserve has signalled that it’s going to be removing emergency support from the economy even sooner than previously expected.

In the most recent Federal Open Market Committee (FOMC) statement, it was noted that the progress on vaccinations and indicators of economic activity and employment have continued to strengthen. It’s expecting further economic activity gains and strong employment, as well as a reduction of inflation.

The Committee decided to reduce the monthly pace of its net asset purchases by US$20 billion for Treasury securities and US$10 billion for agency mortgage-backed securities. COVID-era bond purchases are planned to end in March.

As reported by various media around the world, including Reuters, there could be as many as three rate hike of 0.25% rises by the end of 2022.

The Fed Chair Jerome Powell said:

The economy no longer needs increasing amounts of policy support. In my view, we are making rapid progress toward maximum employment.

CBA share price snapshot

Despite the 10% drop of CBA shares over the last month, it is still up 16% in 2021.

The post CBA (ASX:CBA) share price up amid another loan rate hike appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss
• Qualitas (ASX:QAL) shares are hitting the ASX boards today following its IPO
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Wednesday

Motley Fool contributor Tristan Harrison 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is off its intraday lows but still trading lower for the day. The benchmark index is currently down 0.2% to 7,312.4 points.

Here’s what is happening on the ASX 200 today

CSL share price sinks after completing institutional placement

The CSL Limited (ASX: CSL) share price is sinking following the completion of its institutional placement. The biotherapeutics giant raised a total of US$4.5 billion (A$6.3 billion) at A$273.00 per new share. This is a discount of 8.2% to its last close price. Management advised that the placement received strong support from existing shareholders and new investors. The proceeds will support the acquisition of Vifor Pharma for US$12.3 billion (A$17.2 billion).

Qantas market update

The Qantas Airways Limited (ASX: QAN) share price is falling today following the release of the airline operator’s market update. CEO Alan Joyce revealed that that Qantas has faced “one of the worst halves of the entire pandemic.” As a result, the company is expecting to post a loss exceeding $1.1 billion during the first half. One positive, though, is that Qantas’ balance sheet has improved during the half despite this.

BHP-Woodside deal given ACCC thumbs up

The merger of the BHP Group Ltd (ASX: BHP) petroleum assets with Woodside Petroleum Limited (ASX: WPL) was given a boost today. This morning the Australian Competition and Consumer Commission (ACCC) revealed that it will not oppose the proposed merger. ACCC chair Rod Sims commented: “We found that post-acquisition, Woodside would continue to face competition from a range of suppliers of domestic gas, including major producers Chevron and Santos, and from several other smaller suppliers including Shell and ExxonMobil.”

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Mesoblast limited (ASX: MSB) share price with a 12% gain. This follows an update on its Phase 3 program of rexlemestrocel-L in patients with chronic low back pain (CLBP). The worst performer has been the CSL share price with an 8% decline following its capital raising.

The post ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) share price up amid another loan rate hike
• BHP (ASX:BHP) share price slips as ACCC gives all-clear for Woodside deal
• CSL (ASX:CSL) share price down 8.5% after raising US$4.5bn
• Qantas (ASX:QAN) share price on watch after ‘one of the worst halves of the entire pandemic’
• Qualitas (ASX:QAL) shares are hitting the ASX boards today following its IPO

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 CSL Ltd. 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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Bitcoin (CRYPTO: BTC) has sunk 25% since its peak just over a month ago.

The sell-off seemed to be triggered by worries that it has shifted from an inflation-resistant safe haven to a risk asset that correlates to the stock market.

And with volatile commodities like cryptocurrencies, once a few people start selling, others follow, trying to stop further losses.

“The recent selloff was triggered by a wider risk-off sentiment that also impacted many areas of global stock markets,” said DeVere Group chief Nigel Green.

“It occurred as inflation is running hot and, therefore, encouraging central banks to tighten monetary policies, putting at risk the liquidity that has benefitted many asset classes, including Bitcoin.”

Stop giving Bitcoins away

Green warned investors to stop flogging off their Bitcoins, because it’s only making already wealthy people even richer.

“Wealthy, long-term crypto investors typically benefit from spooked panic-sellers by buying their digital currencies on the cheap to enhance their investment portfolios,” he said.

“Doesn’t a Bitcoin price dip seem especially beneficial to those such investors during these times of worryingly high inflation?”

He added that deep-pocketed cryptocurrency investors always buy the dips.

“This is because they know that digital, global, borderless, decentralised money is, clearly, the future,” said Green.

“Bitcoin has almost doubled in value since January 2021. How many other investments can say that?”

Green cited the fact that the third-largest holder of Bitcoin bought more than US$150 million worth during the current correction.

Yes, 2021 was as volatile as any other year for cryptocurrency’s flag bearer. But this up and down nature is taken advantage of by those who top up their wallets.

“Could this explain why so many of them send out ‘warning shots’ about selling crypto when things are a bit turbulent on social media? It seems very likely,” said Green.

“Those Bitcoin panic sellers are practically giving away their cryptocurrencies to wealthy buyers who accumulate, accumulate, accumulate.”

Bitcoin will return as a safe haven

Despite its behaviour shifting in recent weeks, in the long run Green believes Bitcoin will return to its role of a safe haven against inflation.

This is because Bitcoin is forever limited to a maximum circulation of 21 million coins.

“In this inflationary period, Bitcoin has outperformed gold, which has been almost universally hailed as the ultimate inflation hedge – until now.”

Green advised investors to hold onto their Bitcoin with a long-term perspective.

“Prices of Bitcoin and other cryptos can drop by 10% or more in a matter of hours. Indeed, they often do. This is why you need to have a properly diversified portfolio to mitigate risks,” he said.

“History shows that Bitcoin gains have been enormous for those who hold.”

The post This Bitcoin (CRYPTO:BTC) crash is a Christmas gift for the rich appeared first on The Motley Fool Australia.

More reading

• World first: Aussie Sushi Sushi store on market for $1 million in Bitcoin
• Is Bitcoin a good inflation edge?
• 3 reasons this crypto veteran thinks Bitcoin (CRYPTO:BTC) is positive for the environment
• Aussie crypto sector tipped to be worth $68 billion this decade
• After hitting new record highs in 2021, what’s next for Bitcoin (CRYPTO:BTC) in 2022?

Motley Fool contributor Tony Yoo owns Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin. 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 Corporate Travel Management Ltd (ASX: CTD) share price will be one to watch on Friday when it returns from its trading halt.

This follows news that a number of leading brokers have responded particularly positively to its acquisition plans.

Why is the Corporate Travel Management share price halted?

On Wednesday, the Corporate Travel Management share price was placed into a trading halt whilst it sought to raise $100 million via a $75 million institutional placement and a $25 million share purchase plan.

The $75 million placement will be undertaken at $21.00 per new share, which represents a 5.8% discount to the Corporate Travel Management share price at the close of play on Tuesday.

The company is raising these funds after entering into a binding agreement to acquire the Australia and New Zealand corporate and entertainment travel businesses of Helloworld Travel Limited (ASX: HLO).

Based on the performance of these businesses prior to the pandemic, management expects the deal to be approximately 3% earnings per share accretive excluding synergies and 7% including full run-rate synergies.

Broker response

In response to the news, this morning the team at Macquarie Group Ltd (ASX: MQG) upgraded Corporate Travel Management’s shares to an outperform rating with an improved price target of $24.70.

Based on the latest Corporate Travel Management share price, this implies potential upside of just under 11% for investors.

According to the note, the broker is a fan of the deal and believes the acquisition will be complementary to the company’s existing operations. In light of this and its trading update, Macquarie has upgraded its earnings per share forecasts through to FY 2024.

Elsewhere, the team at UBS has retained its buy rating and lifted its price target to $27.75.

UBS notes that the acquisition provides the opportunity to build further scale in its core Australian operations. Overall, the broker feels the company is “well positioned to leverage the expected recovery in 2022 and beyond.”

The post The Corporate Travel (ASX:CTD) share price will resume trading tomorrow. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• Why Challenger, Helloworld, Lake Resources, and Strike Energy are charging higher
• ASX 200 (ASX:XJO) midday update: CSL upgraded, Westpac AGM update
• Helloworld (ASX:HLO) share price surges 10% on $175m asset sale
• Why is the Corporate Travel Management (ASX:CTD) share price halted?
• Why has the Webjet (ASX:WEB) share price had such a lousy start to December?

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 Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited and Macquarie 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 Immutep Ltd (ASX: IMM) share price is rising today after news of a deal with a European company.

Shares in Immutep were swapping hands at 47.5 cents in early morning trade, up 1.06%.

Let’s take a look at what may be influencing the Immutep share price today?

What did Immutep announce?

Immutep is a biotech company developing a treatment for autoimmune diseases and cancer.

Today, the company advised it has signed an agreement with Northway Biotech to manufacture an antibody suppressor known as IMP761.

IMP761, currently at the preclinical stage, works to silence memory T cells that gather at disease sites.

The company has tested the product against autoimmune diseases including arthritis to prove the concept.

As part of the agreement with Northway Biotech, the European manufacturer will produce IMP761 in large scale bioreactors.

Once this upscale is complete, the product will be used for Immutep’s clinical trial of IMP761.

Immutep said the production would take place at Northway’s facility in Vilnius, Lithuania. In the future, the agreement may be extended to include commercial supply.

Comment from management

Commenting on the agreement that may be driving the Immutep share price higher, CEO Marc Voight said:

We are very excited to be partnering with Northway Biotech to develop a GMP manufacturing process for IMP761.

We are very pleased to be moving IMP761 towards clinical trials.

Immutep share price snap shot

The Immunotep share price has climbed 10% in the past 12 months, rallying 13% year to date.

The biotech company’s shares dived nearly 21% in the past month but are holding steady in the past week.

In comparison, the S&P/ASX 200 Health Care (ASX:XHJ) index is down 5% today and has risen nearly 2% in the year to date.

Immutep has a market capitalisation of more than $405 million at the time of writing.

The post Here’s why the Immutep (ASX:IMM) share price is up today appeared first on The Motley Fool Australia.

More reading

• Immutep (ASX:IMM) share price slips amid trial safety update

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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