The election result just sent CBA and these ASX shares to 52-week highs

The Commonwealth Bank of Australia (ASX:CBA) share price was one of a number of shares storming to 52-week highs on Monday because of the surprise election result…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Highs

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
52-Week Highs

13 ASX 200 shares at 52-week highs

These shares are making their shareholders smile on Thursday.

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
52-Week Highs

These 5 ASX 200 shares just hit new 52-week highs

Do you own any of these five lucky stocks?

Read more »

ETF on white blocks with a rising arrow on top of coin piles.
52-Week Highs

12 ASX ETFs breaking the mould to hit 52-week highs today

What a day for ASX ETF investors!

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
52-Week Highs

Why is the A2 Milk share price up 46% year to date and at a 52-week high?

This infant formula company's shares have delivered the goods this year.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Why is the Webjet share price racing to a 52-week high today?

Webjet has been busy talking up its WebBeds business this morning.

Read more »

Man pointing at a blue rising share price graph.
Financial Shares

Big ASX news: Macquarie share price hits new 52-week high

It's been a great day to own Macquarie shares...

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
52-Week Highs

Metcash share price hits 52-week high on broker upgrade: Time to buy?

Brokers have responded positively to its trading update.

Read more »

a woman sits amid a stylish home setting on a sofa with plush cushions with a coffee table and plant in the foreground while she peruses a tablet device.
52-Week Highs

52-week high! ASX All Ords stock surges 5% as chair steps down

Investors are shopping for Adairs shares after an announced leadership change.

Read more »