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ASX 200 up 0.55%: Cochlear jumps on FDA approval, Adbri crushed on contract loss

At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a solid gain. The benchmark index is currently up 0.55% to 6,065.9 points.

Here’s what has been happening on the market today:

Bank shares mixed.

The big four banks look to have run out of steam on Friday and are acting as a bit of a drag on the ASX 200. At the time of writing the National Australia Bank Ltd (ASX: NAB) share price is down around 0.6%. Whereas the Commonwealth Bank of Australia (ASX: CBA) share price is the best performer in the group with a 0.45% gain. The other two big four banks are trading slightly lower.

Adbri (Adelaide Brighton) crushed.

The Adbri Ltd (ASX: ABC) share price has crashed significantly lower on Friday after announcing the loss of a supply contract with Alcoa Australia. The current lime supply contract will not be renewed when it expires at the end of June 2021. Although this represents approximately $70 million or 4.6% of annual revenue, investors appear concerned others may follow. Alcoa revealed that it is switching to cheaper imported products. This brings to an end a supply relationship that has been ongoing for almost 50 years.

Cochlear gets FDA approval.

The Cochlear Limited (ASX: COH) share price is storming higher after receiving US FDA approval for four new hearing technology solutions products. These new products include the Nucleus Kanso 2 Sound Processor, Nucleus 7 Sound Processor for Nucleus 22 implant recipients, Custom Sound Pro fitting software, and the Nucleus SmartNav system. The four new systems will be commercially released in the United States and Western Europe in the coming months. This is subject to local approvals.

Best and worst performing ASX 200 shares.

The best performer on the ASX 200 at lunch is the Cochlear share price with a 5.5% gain. Investors appear pleased with the upcoming launch of the aforementioned innovative new products. The worst performer on the index by some distance on Friday has been the Adbri share price with a 24% decline. Investors appear concerned that the loss of the Alcoa supply contract could be the first of many.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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