War, Budget and Blue Chips Sink the ASX

The ASX200 fell 1.3% for the week, enduring pressure from the Federal Budget and the ongoing Middle East conflict. Friday was meant to finish the week strongly with Wall Street posting record highs the night prior driven by an AI/Tech rally. Instead, the ASX slipped 0.1% as the mining sector sold off sharply. 

This year’s Federal Budget has caused divided opinions, already looming large over the ASX’s near-term outlook. Changes to the 50% CGT discount replaced by an indexation model is expected to affect investor sentiment in the market, particularly among investors who have long relied on the discount as part of their investing approach. Coupled with three RBA rate hikes already this year — and more expected — the future isn’t looking bright for Australian shares.

This week’s best performers

4DMedical (ASX:4DX) +29.91%

4DMedical bounced back after weeks of volatile trading, with investors buying back into the lung-imaging technology company on the back of its recent commercial and regulatory wins. The move was driven purely by sentiment - no material news has dropped since late March when the company announced EU certification to commence commercial operations in Europe.

Macmahon Holdings Limited (ASX:MAH) +11.61%

The Perth-based mining services contractor rode a broad rally in the resources sector, with Materials up nearly 2% and the Metals and Mining industry gaining over 2% on Wednesday. As investors rotated out of financials, capital flowed into resources and closely aligned service companies like Macmahon. Up nearly 200% over the past year, it has been one of the ASX’s quieter success stories of 2026.  

Develop Global Limited (ASX:DVP) +12.71%

Half-year results sent Dyno Nobel to a three-year high, with the commercial explosives maker reporting an 83% increase in net profit while also reaffirming its full-year earnings guidance. North American operations were a standout, delivering 42% EBIT growth compared to last year’s numbers, along with strong customer success in Canada, Western Australia and Ghana rounding out a compelling half-year results presentation.

This week’s worst performers

Elevra Lithium Limited (ASX:ELV) -18.50%

Elevra raised $275m to fully fund the expansion of their North American Lithium mine in Quebec, funding it through an institutional placement at $12.20 per share, lower than its pre-raise price at $13.74. When companies raise capital like this, existing shareholders are diluted, typically dropping the share price towards the placement price. Despite dilution, the placement has created promising signs for Elevra’s Quebec project and a strong result for long-term holders.

CSL Limited (ASX:CSL) -18.28%

CSL had one of its worst weeks ever. The $45bn+ blue-chip biotechnology company fell nearly 20% on Monday after interim CEO Gordon Naylor cut full-year guidance and reported US$5bn in non-cash impairments mostly related to their failed bet on their 2021 Vifor acquisition. With revenue and profit both down, a CEO search still ongoing and a failed acquisition, investor confidence has been severely damaged. CSL is now down 43% for the year.

Commonwealth Bank of Aus. (ASX:CBA) -9.39%

While only being the 7th worst performer this week on the ASX, CBA lost a staggering $30bn off its value this week after quarterly profit came in slightly below expectations. The bank also set aside a $200m increase in provisions to account for Middle East conflict risks - a signal to investors that CBA is bracing for the current and future macro environment. After the Federal Budget dropped on Tuesday night, CBA dropped 10.4% on Wednesday, with investors also fearing changes to negative gearing and CGT could decrease investment property demand and slow mortgage credit growth, which is a core aspect of CBA’s operations.