Australian shares are firmer as a coalition election victory helps the big miners.
While Tony Abbott’s team was widely expected to win power, RBS Morgans senior private client adviser Bill Chatterton said the reality of a new government, which has promised to repeal the carbon and mining taxes, was exciting investors.
“In the shorter term … if you wanted to choose one that would be having more impact today, it would the election victory,” he said.
At midday, mining giant BHP Billiton had gained 34 cents to $35.50 and Rio Tinto had added 24.5 cents to $61.335.
But iron ore miner Fortescue had fallen eight cents to $4.47, while gold miner Newcrest had shot up 30 cents, or 2.3 per cent, to $13.10.
The major banks were also higher, with National Australia Bank adding 19 cents to $32.96, ANZ up 16 cents to $29.85, Commonwealth Bank rising 21 cents to $73.37 and Westpac gaining 13 cents to $31.77.
Surprisingly, finance group McMillan Shakespeare, which offers novated car leasing packages, lost 48 cents, or 3.58 per cent, to $12.92 even though the coalition has promised not to proceed with Labor’s proposed tightening of fringe benefit tax rules.
Retail giant Woolworths also went backwards, shedding 77 cents, or 2.19 per cent, as it went ex-dividend, to $34.46 but Wesfarmers added 17 cents to $40.57.
Telco giant Telstra was up three cents to $4.83, considering that an Abbott government has vowed to fix mobile phone black spots.
Making news, Cash Converters is seeking to raise $50 million to $60 million through an issue of corporate bonds to repay part of the group’s existing debt and to fund further investments.
Its shares were down half a cent, or 0.41 per cent, at $1.215, at 1227 AEST.
KEY FACTS
* At 1200 AEST on Monday, the benchmark S&P/ASX200 index was up 18.6 points, or 0.36 per cent, at 5,163.7
* The broader All Ordinaries index was up 19 points, or 0.37 per cent, at 5,163.0
* The September share price index futures contract was 23 points higher at 5,168, with 11,392 contracts traded.
* National turnover was 515.4 million securities worth $1.2 billion.
