Government Lifts Aged Care But Cochlear Crumbles

Cochlear Limited HQ - Source

Despite renewed hopes of the Middle East conflict ending, the ASX 200 fell 1.79% for the week - its fourth consecutive day of losses on Friday. The damage was led by a horror week in healthcare, with Cochlear Limited suffering one of its worst sessions on record. Tech added to the fall mid-week after Microsoft and Meta announced job cuts globally after their enormous AI spending commitments, though the sector largely recovered by the week’s end. While the ASX dropped, markets across the world including the US and Japan posted gains and even record highs.

This week’s best performers

Elevra Lithium Limited (ASX:ELV) +15.99%

After a positive March quarterly update, the global lithium producer and developer reported $81m revenue - a new quarterly revenue record with sales up 23% on the prior quarter. Its cash position also grew from $81m to $113m since January, reflecting a strong balance sheet. With lithium demand surging on the back of EV growth and grid-scale energy storage, investors took notice.

Regis Healthcare Ltd. (ASX:REG) +15.45% 

Minister of Health Mark Butler announced earlier in the week that the government will invest $3bn in delivering more beds, home care packages and better care for older Australians in the upcoming Federal Budget in May - leading to a rally in the aged care industry. For Regis, one of Australia's largest aged care providers, the timing couldn't be better. The $3bn injection will directly address its struggling operating margins and investors think so too, sending Regis up 15% in a single session.

Treasury Wine Estates Limited (ASX:TWE) +12.22% 

Australia's largest wine company announced a restructure of its operating model, shifting to four regional divisions - the Americas; Australia, New Zealand and Europe; China; and Emerging Markets. The move is designed to give each region more autonomy and faster decision-making, a structure better suited to TWE's increasingly global footprint. Along with the restructure, they managed to secure funding of $300m which will provide financial flexibility during the transition.

This week’s worst performers

Cochlear Limited (ASX:COH) -42.21%

Hitting a 10-year low, Cochlear’s trading update was the worst selloff on record for the company, with its FY26 profit targets dropping by ~30%. In the US, Cochlear's largest growth market, consumer sentiment has hit historic lows, and hearing loss treatment continues to be viewed as a discretionary intervention rather than a clinical priority - meaning it's one of the first things people cut when finances tighten. Middle East orders have also dried up amid the conflict. So, when the US and the Middle East stalls, its 42% drop is no surprise.

IGO Limited (ASX:IGO) -24.22%

IGO's quarterly update disappointed on almost every front. Production and sales volumes at its flagship Greenbushes operation in WA missed expectations significantly, with guidance subsequently cut. Safety incidents added further concern. The irony is that the lithium market is the strongest it’s been in years, meaning IGO’s problems are not commodity-related rather they’re about execution. CEO Peter Bradford remains optimistic, but investors weren't willing to wait.

4DMedical Ltd. (ASX:4DX) -18.49%

Despite another sell-off, there's a touch of irony in the fact that 4DMedical's news this week was actually positive. They were officially added to the S&P/ASX 200 index - which will bring more attention from passive funds, along with signing a one-year contract with GlaxoSmithKline to provide their lung imaging technology for clinical trials. Its official inclusion on the index tends to skew short-term investor sentiment with passive funds buying ahead of the official data and once it officially arrives, those same investors take profits. The underlying technology continues to gain genuine clinical traction globally, so for long-term watchers of 4DX, this week's dip says more about the index mechanics than the business itself.