The Australian election had a profound effect on the country’s stocks, with many a chiropractor in Bankstown, miner, and bankers getting the most benefits. However, most of the country, at large, saw a bit of a boost, as the country’s shares all rose to an 11-year high following the election of Prime Minister Scottt Morrison, with the Liberal-led conservation government claiming victory.
The Australian Electoral Commission’s site show that Morrison’s coalition got 77 seats out of 151 in parliament.
The boost to stocks were for bankers, coal miners, real estate, as well as healthcare, to the benefit of many a chiropractor in Bankstown and medical practitioners across the country. With their stocks going up so much it pushed the benchmark S&P/ASX 200 index to the highest it’s been in 11 years, going up by 1.7% higher, hitting its intraday level since 2007.
Notably, these sectors were the ones the Labor Party’s campaign were most focused on, which included pledges on taking strong action on property tax loopholes, climate change, healthcare, and the like.
Investment bank Morgan Stanley says that the coalition win was considered a surprise for investors and that the good thing about this is the tail risks that could’ve potentially stemmed from reform from the Australian Labor Party are now removed, thanks to this sudden shift in the market.
For coal stocks, Yancoal Austrlaia, New Hope and Whitehaven Coal saw good gains, with 5.7%, 4%, and 2%, increase, respectively. The defeated opposition Labor party had notable targets for renewable energy, but Morrison rejected these ideas, saying that Australia’s reliance on coal-fired power and mining exports means that such drastic changes wouldn’t work.
Morrison, however, might be caught between their own party’s right-wing, and the independents that are keeping the government working as is, so experts warn that the energy market might see a lot of uncertainty in the future.
As for banks, the financial subindex jumped more than 5%, with Commonwealth Bank of Australia went up by 6%, while National Australia Bank went up by 6.63%, among others.
The financial sector has been in a bit of a pickle following The Royal Commission investigations, with Milroy explaining that the Labor Party took a harder stance on the banking sector.
For the healthcare sector, the country’s biggest private health insurer Medibank Private saw its stock go up by 10%, while NIB Holdings saw its stocks go up 9% in the morning trading following the election results.
The Labor Party had pledged to cut down on the price increase of private health insurance premiums for two years, at 2%, which would’ve affected insurers’ earnings.