With Labor having secured a resounding Federal election win and a majority government, you may be wondering which S&P/ASX 200 Index (ASX: XJO) stocks are best placed to gain from upcoming policy rollouts.
If so, you're not alone!
The good news for every Aussie investor, regardless of your current holdings, is that with the election all but done and dusted, we can look forward to far greater policy certainty over the next few years than we've had over the past few.
Because if there's one thing markets despise, it's uncertainty.
With the Federal election results in mind, Macquarie Group Ltd (ASX: MQG) and MST Financial ran their slide rules over some of Labor's signature economic policies and what those foretell for ASX 200 stocks (courtesy of The Australian Financial Review).
ASX 200 stocks primed to catch Labor tailwinds
First up, Labor is aiming to increase Medicare to the tune of $8.5 billion, hoping that 90% of all GP visits can be bulk billed by 2030.
That massive expansion, as you'd expect, could well lift select ASX 200 stocks in the healthcare space.
If costs come down and more Aussies receive the primary care they require, Macquarie and MST said companies like Healius Ltd (ASX: HLS), Sonic Healthcare Ltd (ASX: SHL), Australian Clinical Labs Ltd (ASX: ACL), and Integral Diagnostics Ltd (ASX: IDX) could benefit from an increase in patient referral volumes.
Then there's Labor's $690 million four-year plan to bring down the costs of medicine in the Pharmaceutical Benefits Scheme (PBS). The analysts expect this should offer tailwinds for pharmacy stocks, including industry giant Sigma Healthcare Ltd (ASX: SIG).
Construction and mining stocks
Another big-ticket item Labor has pledged is a $10 billion spend to construct 100,000 new homes to ease the great Aussie housing crunch.
Macquarie and MST expect this could offer a boost to ASX 200 stocks like Mirvac Group (ASX: MGR) and Stockland Corp Ltd (ASX: SGP).
As the AFR reports, there could also be plenty of winners in the mining space. Labor's $7.3 billion energy plan includes $2 billion in credits for aluminium smelters that switch to renewable energy sources and $1 billion for green iron manufacturing.
Macquarie pointed to both Rio Tinto Ltd (ASX: RIO) and South32 Ltd (ASX: S32) as ASX 200 stocks that are in the sweet spot to benefit from the $2 billion aluminium credits.
The broker added that BHP Group Ltd (ASX: BHP), BlueScope Steel Ltd (ASX: BSL), and Fortescue Ltd (ASX: FMG) shares could enjoy tailwinds from the $1 billion credits for green iron production.
