The surprise election result this weekend has gone down well with the market, leading to the S&P/ASX 200 index rising over 1.4% to 6,456.7 points at lunch.
Here's what has been happening on the market today:
Bank shares charge higher.
The Coalition's election victory is being seen as a big win for the banking sector, lowering risks associated with credit quality, the mortgage market, and regulatory environment. It also means that fully franked dividends are back in favour with investors, which appears to have led to a scramble for bank shares today. The two best performing big four bank shares are National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) with gains of 7% and 7.5%, respectively.
Medibank and NIB charge higher.
Two other companies that have benefited from the shock election result are Medibank Private Ltd (ASX: MPL) and NIB Holdings Limited (ASX: NHF). The shares of these private health insurers are up over 10% at lunch. They were expected to be casualties of a Labor government due to its plan to limit premium increases.
Incitec Pivot disappoints.
The Incitec Pivot Ltd (ASX: IPL) share price has dropped 3.5% lower after its half year results fell short of expectations. The manufacturer and distributor of industrial explosives, industrial chemicals, and fertilisers posted first half EBIT of $119 million, down from $240 million in the prior corresponding period. A note out of Goldman Sachs reveals that it was expecting EBIT of $134 million in the first half.
Best and worst performers.
The best performer on the benchmark index at lunch is the NIB share price, closely followed by Medibank and the big four banks. After which, the Ramsay Health Care Limited (ASX: RHC) share price has risen 6% thanks to the favourable election result. The worst performer on the ASX 200 on Monday has been the Nearmap Ltd (ASX: NEA) share price with a 5% decline. This may be due to profit taking from some investors after an impressive rally in 2019.
