Stocks to watch post-election
The official change in government over the weekend looks set to spark renewed interest in some sectors of the market.
Infrastructure
Keep an eye on Leighton Holdings (LEI) Qube Holdings and Transurban Group (TCL). With the incoming government having committed to spend more than $20 billion on new or upgraded infrastructure projects, these companies are best placed to reap the benefits.
Toll road operator Transurban has comfortably lagged the broader index over the past twelve months. Extra dollars towards roads in Victoria and New South Wales could be the catalyst for a turnaround in Transurban’s share price.
The proposed spend is allocated across major links throughout Australia.
Big four banks
A change in government could see the Labor party’s proposed deposit levy plan scrapped.
Steven Munchenberg, chief executive officer of the Australian Bankers Association, has said the government must drop the deposit levy plan.
The deposit levy is 0.05% of every deposit of up to $250,000. In early August, banks said they would pass the cost on to customers by offering lower interest rates on deposits.
McMillan Shakespeare
Confirmation of the change of government looks set to push McMillan (MMS) shares higher again this week.
The salary packaging and vehicle leasing administrator is still 25.6% below all-time highs reached just before Labor’s announcement of changes to the fringe benefit tax.