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(Bloomberg) -- Shares of Cochlear Ltd., the biggest maker of inner-ear hearing devices in the world, and nursing home provider DCA Group Ltd. rose after the Australian government increased funding for aged care and the deaf.
The government increased funding for aged care by A$2.2 billion ($1.54 billion) over the next five years, in its budget for the year starting July 1, released in Canberra yesterday. Nursing homes will get a A$3,500 grant for each resident by the end of next month, worth a total A$513 million. A further A$8 million will be spent to pay for upgrades for inner-ear hearing implants for deaf children.
Shares of Sydney-based DCA Group, which has more than 2,500 aged- care beds, surged 10 cents, or 3.9 percent, to A$2.65 at 11 a.m. in Sydney, their biggest gain since April 1. Cochlear shares gained 46 cents, or 2.2 percent to A$20.81, and earlier reached A$21.10.
Cochlear Chief Financial Officer Neville Mitchell said the Sydney-based company will benefit most in terms of recognition of its technology rather than in increased sales and earnings.
``This won't have a big impact on our total sales, this is only a very small part of our sales even in Australia,'' Mitchell said in an interview. ``The importance of this is recognition by the government of the importance of funding Cochlear implants and the value to the community.''
The government increased funding for aged care by A$2.2 billion ($1.54 billion) over the next five years, in its budget for the year starting July 1, released in Canberra yesterday. Nursing homes will get a A$3,500 grant for each resident by the end of next month, worth a total A$513 million. A further A$8 million will be spent to pay for upgrades for inner-ear hearing implants for deaf children.
Shares of Sydney-based DCA Group, which has more than 2,500 aged- care beds, surged 10 cents, or 3.9 percent, to A$2.65 at 11 a.m. in Sydney, their biggest gain since April 1. Cochlear shares gained 46 cents, or 2.2 percent to A$20.81, and earlier reached A$21.10.
Cochlear Chief Financial Officer Neville Mitchell said the Sydney-based company will benefit most in terms of recognition of its technology rather than in increased sales and earnings.
``This won't have a big impact on our total sales, this is only a very small part of our sales even in Australia,'' Mitchell said in an interview. ``The importance of this is recognition by the government of the importance of funding Cochlear implants and the value to the community.''