Labor’s Federal Election triumph saw an immediate rise in the shares of listed aged care provider Estia Health as shareholders forecast that the new Government would need to inject more funding in the sector.
Labor leader and now Prime Minister Anthony Albanese pledged an additional $2.5 billion for the aged care sector. His pledges included mandating every aged care facility must have a registered nurse on duty 24 hours a day, seven days a week, and mandating every resident receives a minimum 215 minutes care a day from mid-next year.
Estia Health’s stock rose from $2.12 to $2.14 on Monday at 10am before finishing the day at $2.17, up 3.8%. The shares hit a week’s high of $2.23 yesterday morning before finishing the day at $2.20.
However, the provider’s shares for the year to date have dropped 3.5%.
It was a different story for the other major ASX-listed provider Regis Healthcare.
Its share price dropped from $2.36 overnight to $2.35 at 10am on Monday and ended the day at $2.26. But the stocks kicked back yesterday to hit $2.34 at 10am yesterday before closing the day at $2.25.
Regis Healthcare’s shares are up 19.05% for the year to date.