The Australian stock market has been smashed as a result of the waning oil price with stocks in the energy sector having crumbled over the last few days of trade. However, rather than avoiding the market altogether, the smart investors are recognising the sectors that could actually win big from the falling prices.
Australia's airline and travel industries should benefit as oil becomes cheaper. Take a look at Qantas Airways Limited (ASX: QAN) as a perfect example. Its shares surged 6.2% on Wednesday and have risen a massive 65.6% since mid-October due, in large part, to the fact that oil is the company's main expense. Flight Centre Travel Group Ltd (ASX: FLT) and Cover-More Group Ltd (ASX: CVO) could also benefit if lower oil prices translate to lower airfare prices, resulting in greater levels of travel.
Our retail sector should also benefit from tumbling oil prices. As petrol becomes cheaper, consumers have more money to spend on items such as food, electronics and clothing, which could give retailers a huge boost over the all-important Christmas period. At their current prices, companies including JB Hi-Fi Limited (ASX: JBH) and Woolworths Limited (ASX: WOW) could make for excellent additions to your portfolio to ensure you profit from this oil plunge…
