The surprise victory by the Coalition at the Federal election at the weekend triggered an almighty rally on the Australian share market on Monday.
This led to a number of shares shooting notably higher. Three shares that the election sent charging to 52-week highs are listed below. Here's why they are flying high:
The Commonwealth Bank of Australia (ASX: CBA) share price jumped almost 7% to a 52-week high of $77.72 on Monday. All the big four banks charged notably higher yesterday after the Coalition's election victory. This appears to be on the belief that the election result lowers risks associated with credit quality, the mortgage market, and regulatory environment. In addition to this, I suspect the banks benefited from investors switching back to fully franked dividend options. Labor had planned to reform the dividend imputation credit system if it got into office.
The JB Hi-Fi Limited (ASX: JBH) share price stormed to a 52-week high of $27.14 yesterday. Investors were scrambling to get hold of retail shares on Monday on the belief that the election outcome will boost consumer confidence and spending due to the Morrison government's tax cut plans. These tax cuts are expected to lead to billions of dollars being pumped into the economy over the next few months.
The NIB Holdings Limited (ASX: NHF) share price rocketed a massive 16% higher to reach a 52-week high of $6.83 on Monday. NIB and the rest of the private health insurance industry stand to be amongst the biggest winners from this surprise election result. The company had been out of favour with investors due to Labor's plan to limit premium increases to 2% if it won the election. This was expected to put pressure on margins and limit its profit growth over the medium term.
