The ASX 200 (ASX: XJO) has continued its winning streak on Monday, it’s currently up 1.75%.
Even Victoria is now getting in on the ‘opening up’ action of lessening COVID-19 restrictions.
But there’s still a lot of pain out there. Here are some of the main headlines of the day.
Investors hear about Cochlear (ASX: COH) suffering
Hearing aid business Cochlear is suffering from the dramatic reduction in surgeries. The Cochlear share price is currently up 5.5%.
The company said that there has been a “significant” decline in surgeries across major markets. Sales revenue across the business dropped around 60% in April 2020 with cochlear and acoustic implants the most severely affected.
Chinese surgeries recommenced in late February and continued to recover throughout April. Surgeries are now running close to pre-coronavirus run rates.
The company is looking to get through this by lowering expenses but it’s still going to keep investing in research and development.
Cochlear’s Services business, which represents around 30% of regular revenue has also been hurt with April sales dropping by 30%.
Suncorp’s (ASX: SUN) cloudy update
Investors have also responded positively to an update from the insurance and banking company.
COVID-19 has caused the company’s collective provision to rise to $133 million, which is 0.23% of gross loans and advances.
Suncorp expects lower consumer motor claims because people are not driving as much. It’s also expecting increased landlord loss of rent claims and negative movements of the investment portfolio. However, Suncorp said that if landlords and tenants agree a rent reduction, it won’t count as a defaulting tenant and does not trigger a claim.
Gross written premium (GWP) is expected to be impacted by lower economic activity.
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Disclosure: Jaz does not own shares of any of the shares mentioned at the time of writing.
