ASX retail shares are in the green today following consumer spending incentives in the federal budget.
The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up 1.16% so far today to 3,194.60 points. For perspective, the S&P/ASX 200 Index (ASX: XJO) is ahead 0.72% at the time of writing.
Let's take a look at how ASX retail shares are performing today.
Consumer spending boost
ASX retail shares are climbing today. The Harvey Norman Holdings Limited (ASX: HVN) share price is up 1.87%, Wesfarmers Ltd (ASX: WES) is 1.28% higher, and JB Hi-Fi Limited (ASX: JBH) is 1.23% in the green.
Meanwhile, the Adairs Ltd (ASX: ADH) share price is up a healthy 4.75%, Kogan.com Ltd (ASX: KGN) is surging 5.54%, and City Chic Collective Ltd (ASX: CCX) is 1.04% ahead.
Supermarket giant Coles Group Ltd (ASX: COL) is also ahead 1.06%, while Woolworths Group Ltd (ASX: WOW) is 1.3% higher.
Shareholders may be reacting to more cash in the hands of consumers. In last night's budget, the federal government announced a $420 cost of living tax offset for 10 million Australians. Pensioners, welfare recipients, veterans, and eligible concession cardholders will also receive a "cost of living payment" of $250 in April.
Treasurer Josh Frydenberg said the cost of living package was introduced to "take the pressure off" household budgets.
Commenting on the budget implication for investors last night, the team at Switzer said the budget was good for consumer discretionary stocks, especially retailers including JB Hi-Fi, Harvey Norman and Wesfarmers. Peter Switzer added:
I would really be believing that retailers would be popping champagne corks tonight. It's a very good budget for anyone that is linked intimately to the consumer.
ASX retail share recap
The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has climbed 3% in the past year although it has dropped more than 9% year to date amid ongoing COVID-19 uncertainty.
In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 12% in the past year.
