“Dosh” Frydenberg’s budget and the impact on the share market
By now you’ll be well aware that last night was federal budget night and Treasurer “Dosh” Frydenberg has done his best to butter us all up before the upcoming (but as yet unannounced) election.
I’m sure you’re across all the spending and you don’t need me to tell you about it again, but where I can shed some light is on where money has been invested in the stock market since the announcements, and how the market has reacted.
It makes sense that retailers and car-related stocks will benefit from a bounce in consumer spending after the budget promised voters $8.6 billion to address cost of living pressures, including the high price of petrol.
The big one is the cut to fuel excise, which is already flowing through to the bowser. Viva Energy, one of Australia’s largest petrol station operators, has immediately cut fuel prices by 10¢ a litre at its 700 Coles Express sites across the country.
The excise cut, along with other new payments and tax rebates for consumers have seen Wesfarmers up just under 1% to $51.08, homewares store Adairs up 6% to $3.01, Lark distillery up 3%, and Super Retail Group, which owns brands Supercheap Auto, BCF, Rebel and Macpac up 1.4% to $10.61.
You can hear my wrap up and highlights of the budget with Denis Walter last night here.