Miners Drag, Healthcare Saves the Week

The ASX 200 fell 1.2% for the week, dragged down by materials as iron ore dropped to a three-month low of $US100.85 a tonne, weighed down by rising supply from Guinea's Simandou mine and softer seasonal steel demand. Banks also slipped on concerns about the housing market and falling loan demand. The one bright spot was healthcare, where investors rotated into defensive names after the sector was sold off hard in May. Oil held steady around $US95 a barrel as ceasefire talks between the US and Iran showed no sign of progress. 

This week’s best performers

Pro Medicus, Ltd. (ASX:PME) +25.24%

Pro Medicus gained this week after announcing a 5-year, $16 million contract renewal with The Ohio State University Wexner Medical Center, one of the largest academic medical centres in the US. The renewal came at higher minimum commitments and unit economics than the prior contract, with OSUWMC also adding two new modules, Visage 7 Workflow and Cardiology Imaging, extending Pro Medicus's footprint beyond core radiology. The deal brings total FY26 contract renewals to $141 million, underlining the company's near-perfect client retention record. At $162 a share, PME isn't cheap – but it keeps finding ways to justify the price tag.

This week's worst performers

DroneShield Limited (ASX:DRO) -15.63%

DroneShield had a rough week, caught in the crossfire of improving geopolitical sentiment. When reports emerged of progress in US-Iran ceasefire talks, investors sold out of counter-drone stocks on fears that de-escalation would soften demand for DroneShield's products, with the stock dropping 10.5% on Monday alone on no company-specific news. The week wasn't all bad – DroneShield partially recovered after securing a US$24.9 million contract with the US Department of Defense, with at least US$10 million expected to hit FY26 revenue. Not enough to recover the week, but a reminder the underlying business is winning contracts.