Each of the big four ASX banks went up more than 6% today.
As an overview, here are some of many large gains that were experienced today:
The Commonwealth Bank of Australia (ASX: CBA) share price rose 6.3%.
The Westpac Banking Corp (ASX: WBC) share price increased by 9.2%.
The National Australia Bank Ltd (ASX: NAB) share price went up 7.9%.
The Australia and New Zealand Banking Group (ASX: ANZ) share price climbed 7.8%.
Not only are investors excited by the fact that shareholders will still have their franking credits potentially refunded (depending on many taxation factors such as the tax bracket you're in), but Labor would likely have been tougher on the banks as well in terms of regulations, punishments and accountability.
To me, it's interesting that the second tier banks did not respond anywhere nearly as strongly, even though their yields are high as well.
The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price was up 2.75%.
The Bank of Queensland Limited (ASX: BOQ) share price went up 3.75%.
The Suncorp Group Ltd (ASX: SUN) share price only went up 0.9%.
The Macquarie Group Ltd (ASX: MQG) share price rose by 1.7%.
Who knows whether the market is right to be so positive. If house prices stop falling for a sustained period of time then it could actually prove to be a confidence booster for all the worried shoppers and property buyers who are waiting on the wings.
However, except for a RBA cut, I'm not sure how people who are currently in 90+ day mortgage arrears will be helped by the election result.
Foolish takeaway
Australia is still dependent on China, the US and other factors to underpin further increases in the value of the overall index. The ASX is very close to reaching the pre-GFC highs, which would be quite amazing to finally reach those heights after over a decade.
