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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small decline. The benchmark index is currently down 0.1% to 7,447.3 points.

Here’s what is happening on the ASX 200 today:

Sydney Airport agrees takeover deal

The Sydney Airport (ASX: SYD) share price is pushing higher today after accepting a takeover approach. According to the release, the airport operator has given the thumbs up to an offer of $8.75 per share from a consortium of investors led by IFM Investors and Global Infrastructure Partners. This values Sydney Airport at $32 billion on an enterprise value basis. Sydney Airport’s board has unanimously recommended its shareholders vote in favour of the deal.

ANZ shares fall after going ex-dividend

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price trading lower today. However, it has nothing to do with its performance or a broker note. Rather, it is due to the bank’s shares trading ex-dividend for its fully franked final dividend of 72 cents per share. Eligible shareholders can look forward to receiving this latest dividend on 16 December. For the same reason, the Macquarie Group Ltd (ASX: MQG) share price is trading lower today.

Wesfarmers to acquire API

The Wesfarmers Ltd (ASX: WES) share price is trading lower today despite announcing a deal to acquire Australian Pharmaceutical Industries Ltd (ASX: API). Wesfarmers will be acquiring the pharmacy chain operator and distributor for $1.55 cash per share. While this represents only a modest premium to the most recent API share price, it is a 35.4% premium to its undisturbed closing share price on 9 July 2021. On that day Wesfarmers made its first offer of $1.38 per share.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the St Barbara Ltd (ASX: SBM) share price with a 6% gain. A number of gold miners are storming higher today after a rise in the gold price on Friday. The worst performer has been the Polynovo Ltd (ASX: PNV) share price with an 8% decline. On Friday afternoon this medical device company announced the surprise resignation of its Managing Director, Paul Brennan.

The post ASX 200 (ASX:XJO) midday update: Sydney Airport agrees to takeover, Wesfarmers’ strikes API deal appeared first on The Motley Fool Australia.

More reading

• These 6 ASX shares are going ex-dividend this week
• API (ASX:API) share price higher after accepting Wesfarmers takeover offer
• Wesfarmers (ASX:WES) share price rises on API takeover deal
• Confirmed: $32 billion Sydney Airport (ASX:SYD) deal to land today
• 5 things to watch on the ASX 200 on Monday

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 shares of and has recommended POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Wesfarmers 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 BHP Group Ltd (ASX: BHP) share price is pushing upwards on Monday morning while the broader market falls.

At the time of writing, the diversified miner’s shares are swapping hands for $36.64, up 1.52%. In context, the S&P/ASX 200 Index (ASX: XJO) is down 0.04% to 7,454.1 points.

What did BHP announce?

Investors are buying up BHP shares following the company’s latest update to the ASX.

According to its release, BHP advised it has signed a deal to offload its interest in BHP Mitsui Coal (BMC). The latter has a controlling stake in metallurgical coal mines, the South Walker Creek and Poitrel coal mines.

The share sale and purchase agreement will see the world’s second largest miner sell its 80% interest to Stanmore Resources.

The total purchase price is up to US$1.35 billion. This consists of US$1.1 billion in cash, another US$100 million in cash six months after completion, and a possible US$150 million payout in 2024 linked to prices.

For the sale to go ahead however, a number of conditions must be met along with regulatory approvals. Should certain conditions not be satisfied, Stanmore Resources will need to pay a break fee.

Completion of the deal is expected to happen sometime in the middle of the 2022 calendar year. Up until then, BHP will closely work with Stanmore Resources to bring up to speed and ensure a smooth transition.

BHP president of minerals Australia, Edgar Basto commented:

As the world decarbonises, BHP is sharpening its focus on producing higher quality metallurgical coal sought after by global steelmakers to help increase efficiency and lower emissions.

The net proceeds will be put towards maximising shareholder value, whether this be future dividends, share buybacks or both.

About the BHP share price

Over the past 12 months, BHP shares have gained 5%, but have lost almost 15% in 2021. The company’s share price trekked higher up until August, before plummeting to November 2020 lows.

Based on today’s price, BHP presides a market capitalisation of roughly $106.47 billion and has approximately 2.95 billion shares outstanding.

The post BHP (ASX:BHP) share price defies broader market sell-off to edge higher. Here’s why appeared first on The Motley Fool Australia.

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• Evergrande latest, plus another Chinese developer just missed a payment
• Down 33% in 3 months: Is the BHP (ASX:BHP) share price an opportunity?
• Does the BHP (ASX:BHP) share price really have an 11% dividend yield right now?
• BHP (ASX:BHP) share price rises amid Noront Resources takeover update
• Top broker names 2 of the best ASX share ideas for November

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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One area of the market that is popular with investors is the tech sector. And with so many quality companies in the space, it isn’t hard to see why.

If you’re looking to increase your exposure to the sector, you may want to look at the shares listed below.

Here’s why these tech shares are rated as buys:

Hipages Group Holdings Ltd (ASX: HPG)

The first tech share that is rated highly by analysts is Hipages. It connects tradies with residential and commercial consumers through its online marketplace.

The company notes that to date, over three million Australians have changed the way they find, hire, and manage trusted tradies with its platform. This has ultimately provided more work to over 31,000 trade businesses subscribed to the platform.

Goldman Sachs is a big fan of Hipages. It has a buy rating and $4.90 price target on the company’s shares at present.

The broker commented: “HPG is delivering on its strategy of growing its core and entering new category channels and adjacencies to expand in the A$110bn tradie marketplace TAM. Recently we have seen the company enter the field service software market through the release of Tradiecore in June 2021.”

“At the August FY21 earnings release the company announced its intention to enter the related payments and financial services adjacencies to its core tradie marketplace. We believe this solidifies the group’s ability to grow subscriptions and ARPU over the medium term, and we have adjusted our forecasts accordingly,” it added.

Megaport Ltd (ASX: MP1)

Another tech share that is rated highly is Megaport. It is the global leading provider of elastic interconnection services. Using software defined networking (SDN), Megaport’s global platform allows customers to rapidly connect their network to other services across its network. These services can then be directly controlled by customers via mobile devices, their computer, or its open API.

While its shares have been on fire recently, one leading broker still sees a bit of upside for the Megaport share price. According to a note out of Citi, its analysts have a buy rating and $20.00 price target on the company’s shares.

Citi commented: “The key positive from Megaport’s 1Q update was the solid growth in MRR, with 1Q22 being a record in terms of MRR added. However, while we had expected port and services additions to be down qoq reflecting summer holidays in North America and Europe and 4Q21 potentially benefiting from a catch-up after a weak 3Q21, port additions in 1Q22 were softer than expected and missed our expectations by -30%.”

The post Analysts name 2 rapidly growing ASX tech shares to buy appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX tech shares ripe for the picking
• 10 top ASX shares to buy in November
• Brokers name 3 ASX shares to buy today
• Why CSR, Hipages, NIB, and Paladin Energy shares are racing higher
• Megaport (ASX:MP1) share price outperforms All Tech Index by 14% over the past month

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 shares of and has recommended Hipages Group Holdings Ltd. and MEGAPORT FPO. The Motley Fool Australia has recommended Hipages Group Holdings Ltd. and MEGAPORT FPO. 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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When a share goes ex-dividend, it’s usually something that investors can’t help but notice. ASX dividend paying shares are great, but something that comes with them is the ex-dividend date.

Since new investors aren’t eligible for a company’s dividend past the ex-date, a share that is trading ex-dividend will normally see the value of this dividend leave its share price, sometimes resulting in a seemingly nasty share price fall.

So let’s check out 6 ASX shares that are scheduled to trade ex-dividend this week.

6 ASX shares going ex-dividend this week

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

ASX bank ANZ is our first ASX share going ex-div this week, today as a matter of fact. Yes, this morning, ANZ shares traded ex-dividend for this bank’s upcoming final dividend of 72 cents per share, fully franked.

Shareholders can look forward to receiving this payout on 16 December, just in time for Christmas! As it stands at the time of writing, ANZ shares are down 2.26% at $28.14 a share. That gives the ANZ share price a yield of 5.05%.

Macquarie Group Ltd (ASX: MQG)

ANZ isn’t the only ASX bank going ex-dividend today, with Macquarie also cutting off new shareholders for its upcoming payout this Monday. Macquarie investors can expect to see this bank’s interim dividend of $2.72 per share, 40% partially franked, on 14 December. Macquarie shares are currently down 0.91% from Friday’s close at $200.37. That means Macquarie presently has a yield of 3.03% on the table.

CSR Limited (ASX: CSR)

Construction company CSR is also scheduled to go ex-dividend this week, but this one is set for tomorrow. Shareholders will be receiving an interim dividend of 13.5 cents per share, fully franked, on 10 December. As it stands today, CSR shares are currently trading at $6.33 each, giving this company a yield of 4.42% at this price.

Naos Small Cap Opportunities Company Ltd (ASX: NSC)

Listed Investment Company (LIC) Naos Small Cap Opportunities is yet another ASX share that’s headed for an ex-dividend date this week. This LIC will be trading ex-div on Wednesday for an interim dividend of 1.25 cents per share, fully franked, which will hit shareholders’ pockets on 30 November. Naos Small Cap Opportunities is currently trading at 94 cents per share, giving it a dividend yield of 5.32%.

Resmed Inc (ASX: RMD)

Healthcare company Resmed is next up today. This dual-listed ASX share is also going ex-dividend on Wednesday for its upcoming interim dividend of 3.91 cents per share, unfranked, to be paid out on 16 December. At Resmed’s present share price of $34.07, this company has a trailing yield of 0.59%.

Australian Pharmaceutical Industries Ltd (ASX: API)

Australian Pharmaceutical Industries (or API for short) is our last ASX share to check out today. Wesfarmers Ltd (ASX: WES) shareholders should be very interested in this one, seeing as their company looks set to acquire API.

So API will be going ex-dividend on Friday this week for its upcoming final dividend of 2 cents per share, fully franked. Investors will receive this payout on 15 December. At today’s share price of $1.52, API has a dividend yield of 1.31%.

The post These 6 ASX shares are going ex-dividend this week appeared first on The Motley Fool Australia.

More reading

• Why is the Macquarie (ASX:MQG) share price sliding lower today?
• API (ASX:API) share price higher after accepting Wesfarmers takeover offer
• Wesfarmers (ASX:WES) share price rises on API takeover deal
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week

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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended ResMed Inc. 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 Woodside Petroleum Ltd (ASX: WPL) share price is up 2.75% at time of writing, to $23.20 per share.

The healthy gains come as the wider S&P/ASX 200 Index (ASX: XJO) is struggling in morning trade, down 0.1%.

With no fresh news out from the company today, the Woodside share price looks to be enjoying some tailwinds from the bump in crude oil prices over the weekend.

What’s happening in oil markets to impact the Woodside share price?

Last Friday, Aussie time, Brent crude oil was trading for US$80.54 per barrel. Today, that same barrel is worth US$83.03, up 3.1% over the weekend. That’s obviously good news for the Woodside share price.

Oil’s price gains came after last Thursday’s declaration by OEPC+, which includes Russia, that the organisation was sticking with its plans to only modestly increase oil output by 400,000 barrels per month.

That’s less than the forecast increase in demand for oil, as the world gears back up from its pandemic sabbatical. And that’s putting upward pressure on prices.

And OPEC isn’t likely to shift its position anytime soon.

On Friday, Saudi Aramco increased its December official selling price (OSP) to European, Asian and United States customers in its third-largest month-on-month price increase in more than 20 years, according to Bloomberg.

And Mike Muller, head of Asia for oil trading giant Vitol, doesn’t see that changing anytime soon. Muller said (quoted by Bloomberg), “They are unlikely to change stance.”

Addressing the much higher than expected increase in Saudi Aramco’s OSP, Muller added, “That was a signal to those that were critiquing OPEC+ for not putting enough oil on the market. The Saudis felt they can indeed make higher prices stick.”

A whole lot of moving parts

Of course, forecasting the future price of crude oil involves accurately predicting how countless moving parts will all come together.

Potentially putting downward pressure on crude prices, United States President Joe Biden is eyeing the nation’s 600 million barrels of oil stored in its strategic petroleum reserve (SPR). If the US decides to release some of the oil, it could ease the supply crunch. At least in the short run.

Though, according to Muller, that may already be largely priced into the market. “The market does seem to have an expectation that there’ll be some form of SPR release,” he said.

Woodside share price snapshot

The Woodside share price has gained 27% over the past 12 months. By comparison, the ASX 200 is up 20% in that same time.

Over the past month, Woodside shares are down 7.5%.

The post Woodside (ASX:WPL) share price up 3%, but what’s the outlook for oil? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Woodside (ASX:WPL) share price slides following mixed reserve update
• 5 things to watch on the ASX 200 on Friday
• Why is the Woodside (ASX:WPL) share price slipping and sliding today?
• 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 Macquarie Group Ltd (ASX: MQG) share price is sagging during early morning trade on Monday. This comes after the investment bank announced a share purchase plan (SPP) for eligible investors along with its shares going ex-dividend.

At the time of writing, Macquarie shares are down 1.14% to $200.12 apiece.

Macquarie opens share purchase plan

In its release, Macquarie Group advised that it will conduct a SPP to raise additional funds to support its growth strategy.

Last week, the company completed a $1.5 billion institutional placement, resulting in the issuance of 7.7 million shares.

The SPP price will be the lower of $191.28 or a 2% discount on the 5-day volume-weighted average price up until the closing date.

It’s worth noting that SPP shares will be issued after the record date for the 1H22 dividend and will not be eligible to receive the dividend.

The closing date for the SPP is 26 November.

Macquarie goes ex-dividend

While the company has been busy on the news front, investors will be eyeing Macquarie shares as they go ex-dividend today.

Typically, one day before the record date, the ex-dividend date, is when investors must have purchased Macquarie shares. If the investor does not buy Macquarie shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

What does this mean for Macquarie shareholders?

For those eligible for Macquarie’s first-half dividend, shareholders will receive a payment of $2.72 per share on 14 December. The dividend is also partially franked which means that shareholders can expect to receive tax credits from this.

Investors who elect for the dividend reinvestment plan (DRP) will have no discount applied to the volume-weighted average price. This is for the 5 trading days leading up to and inclusive of the ex-dividend date.

The payout ratio of 50% is in line with Macquarie’s dividend policy (50% to 70% annual payout ratio).

Macquarie share price summary

It has been an outstanding year for Macquarie shares, trekking 45% higher for 2021 and nearly 50% for the last 12 months. The company’s shares reached an all-time high of $204.22 last Friday.

Based on today’s price, Macquarie commands a market capitalisation of roughly $74 billion, and has approximately 376.65 million shares outstanding.

The post Why is the Macquarie (ASX:MQG) share price sliding lower today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Why did the Macquarie (ASX:MQG) share price have such a great month in October?
• Here’s why JP Morgan sees more growth in Macquarie (ASX:MQG) shares
• Which ASX bank shares were the best performers during October?

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 owns shares of and has recommended 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 Westpac Banking Corp (ASX: WBC) share price has been a positive performer on Monday.

In morning trade, the banking giant’s shares are outperforming the banking sector and up 1.5% to $22.89.

Why is the Westpac share price rising today?

This morning Westpac announced that the latest Independent Reviewer’s report on its integrated plan to improve risk governance has been released. This is part of an enforceable undertaking agreed in December with APRA, following issues found in Westpac’s risk governance.

As of 30 September, Westpac had submitted 121 of 327 activities to the independent reviewer for assessment. Of the activities submitted, 102 were assessed as complete and effective, with the assessment of the remaining 19 still underway.

Westpac also highlights that the report notes that the banking giant’s progress with its integrated plan is on track.

Investors could be pleased with this news and may have been bidding the Westpac share price higher in response.

Anything else?

With the Westpac share price sinking 12% last week following the release of its full year results, some investors may have been swooping in today on the belief that its shares were oversold.

One broker that appears to believe this is the case is Morgans.

Last week while many brokers were downgrading the bank’s shares, its analysts retained their buy rating and lifted their price target on Westpac’s shares to $30.50.

Based on the current Westpac share price, this suggests there’s potential upside of 33% for investors over the next 12 months.

And with Morgans forecasting a $1.23 per share fully franked dividend in FY 2022, the total potential return stretches to over 38%.

While the broker acknowledges that Westpac’s net interest margin disappointed, it feels the selloff was an overreaction and created more value for investors.

The post Why is the Westpac (ASX:WBC) share price outperforming on Monday? appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Why is the Westpac (ASX:WBC) share price sinking again today?
• 5 things to watch on the ASX 200 on Friday
• How did the Westpac (ASX:WBC) share price perform in October?
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 AGL Energy Limited (ASX: AGL) share price has battled through a shocking 30 days over which it has fallen a significant 10.2%. Shares in the company are currently trading for $5.61 a piece.

The energy provider’s dip came despite it maintaining its silence. In fact, the company hasn’t released any price-sensitive news to the market since August.

On top of that, market watchers are likely keeping an eye on the AGL share price ahead of its planned demerger, set to go ahead later this financial year.

While AGL’s stock has been suffering, that of its competitor, Origin Energy Ltd (ASX: ORG) is staying relatively flat.

Over the last 30 days, the Origin share price has gained 0.7% to reach $5.11.

Let’s take a look at what’s keeping the Origin share price broadly afloat while that of AGL is sinking.

Origin share price outperforms that of AGL

While the embattled AGL has been quiet on the ASX over the last month, the market has heard an avalanche of news from Origin.

The announcements began when Origin’s annual general meeting was held on 20 October. There, the company’s CEO Frank Calabria stated that its outlook for financial year 2022 had improved.

According to Calabria, the company expects its energy markets business to post a stronger performance than was previously predicted. It came after global demand for oil and liquid natural gas (LNG) increased unexpectedly.

The following week, Origin announced it had agreed to sell a 10% stake in Australia Pacific LNG for $2.12 billion. The Origin share price gained 3.8% on the back of the news. Origin will retain a 27.5% holding in the joint venture following the sale.

Though, the party didn’t last long for AGL’s competitor’s share price. Origin’s stock’s value slid 1.3% on 29 October after the company released an update on its performance through the first quarter of financial year 2022.

Foolish takeaway

While a flood of news seems to have kept the Origin share price afloat over the last 30 days, AGL’s silence hasn’t allowed its stock the same buoyancy.

At the time of writing, the AGL share price is 53% lower than it was at the start of 2021. It has also fallen 56% since this time last year.

The post Why is the AGL (ASX:AGL) share price underperforming Origin lately? appeared first on The Motley Fool Australia.

More reading

• How did the AGL (ASX:AGL) share price perform in October?
• The top performing ASX 200 energy shares in October unmasked
• Is the AGL Energy (ASX:AGL) share price a value trap?
• Origin (ASX:ORG) share price slides on mixed energy market sales
• 3 ASX shares the ‘Aussie Berkshire Hathaway’ loves the most right now

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 NIB Holdings Ltd (ASX: NHF) share price is edging lower on Monday morning. This comes after the private health insurer announced an update on the takeover of a life and living insurance products and services company.

At the time of writing, NIB shares are fetching for $7.21, down 1.23%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.06% to 7,461 points.

What did NIB announce?

According to its announcement, NIB advised that its New Zealand subsidiary nib NZ has agreed to purchase Kiwi Insurance. The latter is a wholly-owned subsidiary of Wellington-based Kiwi Group Holdings.

The total consideration to acquire 100% of the shares in Kiwi Insurance is said to be around $43 million. However, this deal is subject to outstanding regulatory approvals.

In addition to the takeover, nib NZ will enter into an exclusive arrangement with Kiwibank, another subsidiary of Kiwi Group. The bank will refer its retail customers to nib for life and living insurance needs, increasing its members by another 34,000.

NIB is planning on funding the acquisition through a combination of existing capital and new debt. Pleasingly, the transaction is expected to be accretive to earnings per share (EPS).

Completion of the deal is being targeted for early 2022.

The acquisition is also expected to not have a material financial impact on the group’s FY22’s earnings.

NIB managing director Mark Fitzgibbon commented:

In New Zealand, living, life and health insurance are complementary products so often purchased as a package. We‘re responding to this preference with what should be a more integrated and seamless experience for members and customers. And it means more people will benefit from the investment we’re making in more personalised health risk assessment and management.

NIB share price snapshot

NIB shares have been on the move since this time last year, rocketing 66% over the period. When looking at year-to-date, its shares are up around 21%.

Based on today’s price, NIB commands a market capitalisation of roughly $3.32 billion and has approximately 458 million shares outstanding.

The post NIB (ASX:NHF) share price backtracks despite acquisition news appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why the NIB (ASX:NHF) share price is one of the best performers on the ASX 200 today
• Why CSR, Hipages, NIB, and Paladin Energy shares are racing higher
• ASX 200 (ASX:XJO) midday update: Zip’s record month, Domino’s crashes
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Aaron Teboneras owns shares of NIB Holdings Limited. 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 NIB 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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The Commonwealth Bank of Australia (ASX: CBA) share price opened in the green this morning amid news the bank is working with a leading Silicon Valley-based artificial intelligence (AI) company.

CBA has partnered with, and bought a minority holding in, H2O.ai. Under their agreement, the operator of cloud-based machine learning platform H2O AI Cloud will provide CBA with its product and work to create new solutions for the bank.

The CBA share price popped at market open on Monday, rising to $109.98, before dipping into the red. At the time of writing, CBA shares are creeping back up to $109.90, 0.17% higher than the previous close.

For context, the broader market followed a similar pattern this morning, popping on open before dipping into the red. Right now, the S&P/ASX 200 Index (ASX: XJO) is down 0.09% while the All Ordinaries Index (ASX: XAO) is down 0.11%.

Let’s take a closer look at today’s news from CBA.

CBA banking on AI-led future

The CBA share price is up after the bank announced its latest push to increase trust, confidence and engagement in its business.

The bank plans to use AI to help its customers save money while shopping across, and drive sales to, platforms including Little Birdie, Karta, CommBank Rewards, and Klarna.

The technology will also help the bank’s retail and business customers predict bills and forecast cash flows. It could potentially predict energy use and, thus, help lower carbon emissions.

H2O.ai provides AI services to more than 20,000 organisations, including more than half of the Fortune 500. It also employs the top 20 Kaggle grandmasters – a title given to best-in-the-world data scientists and machine learning practitioners.

CBA is now the AI company’s exclusive financial services partner in Australia and New Zealand.

The bank’s CEO, Matt Comyn, commented on the partnership:

This partnership will accelerate our ability to deliver a broader customer proposition through more personalised experiences, which delivers greater value for our customers… the more our customers engage with us, the better we are able to anticipate their needs.

H2O.ai’s founder and CEO, Sri Ambati, said the partnership “will be fun”:

[It] will unleash the juggernaut of co-innovation in AI for payments and further democratise AI with trust and freedom. Our vision is not only to make CBA an AI superpower but make Australia an AI nation as we move to life after COVID.

CBA’s partnership with H2O.ai is the latest step the bank has taken to embrace data and technology within its business. Earlier this year, CBA entered a joint venture with data science firm Quantium. Under the joint venture, the two entities will provide data to governments, businesses, and investors.  

CBA share price snapshot

It’s been a great month so far for the CBA share price. Since the end of October, the bank’s stock value has increased around 5%.

CBA shares have gained 33% since the start of 2021 and 57% since this time last year.

The post CBA (ASX:CBA) share price gains amid Silicon Valley AI partnership appeared first on The Motley Fool Australia.

More reading

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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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