The election result just sent CBA and these ASX shares to 52-week highs

The Commonwealth Bank of Australia (ASX:CBA) share price was one of a number of shares storming to 52-week highs on Monday because of the surprise election result…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The surprise victory by the Coalition at the Federal election at the weekend triggered an almighty rally on the Australian share market on Monday.

This led to a number of shares shooting notably higher. Three shares that the election sent charging to 52-week highs are listed below. Here's why they are flying high:

The Commonwealth Bank of Australia (ASX: CBA) share price jumped almost 7% to a 52-week high of $77.72 on Monday. All the big four banks charged notably higher yesterday after the Coalition's election victory. This appears to be on the belief that the election result lowers risks associated with credit quality, the mortgage market, and regulatory environment. In addition to this, I suspect the banks benefited from investors switching back to fully franked dividend options. Labor had planned to reform the dividend imputation credit system if it got into office.

The JB Hi-Fi Limited (ASX: JBH) share price stormed to a 52-week high of $27.14 yesterday. Investors were scrambling to get hold of retail shares on Monday on the belief that the election outcome will boost consumer confidence and spending due to the Morrison government's tax cut plans. These tax cuts are expected to lead to billions of dollars being pumped into the economy over the next few months.

The NIB Holdings Limited (ASX: NHF) share price rocketed a massive 16% higher to reach a 52-week high of $6.83 on Monday. NIB and the rest of the private health insurance industry stand to be amongst the biggest winners from this surprise election result. The company had been out of favour with investors due to Labor's plan to limit premium increases to 2% if it won the election. This was expected to put pressure on margins and limit its profit growth over the medium term.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Highs

Man pointing an upward line on a bar graph symbolising a rising share price.
52-Week Highs

8 ASX 200 shares hitting multi-year highs today

These shares have defied the trend, hitting new price milestones amid a day in the red for the ASX 200.

Read more »

A happy young couple celebrate a win by jumping high above their new sofa.
52-Week Highs

Guess which ASX 200 furniture retailer is up 400% in 5 years?

Up 400% over the past five years is not bad for a furniture retailer. Here's why this quiet compounder has…

Read more »

A piggy bank on the cloud in the blue sky symbolising a record high share price.
52-Week Highs

12 ASX 200 shares that smashed historical peak prices today

Twelve ASX 200 shares rose to new multi-year peaks in an otherwise quiet day of trading.

Read more »

A beautiful ocean vista is shown with a woman whose back is to the camera holding her arms up in triumph as she stands at the top of a rock feeling thrilled that ASX 200 shares are reaching multi-year high prices today
52-Week Highs

8 ASX 200 stocks striking multi-year highs today

These shares hit new price milestones amid a day in the green for the ASX 200.

Read more »

Five businessmen in suits walking up stairs in neat succession.
52-Week Highs

5 ASX 200 shares smashing new 52-week highs today

These five ASX 200 shares just broke into new multi-year and all-time highs. Here’s why.

Read more »

A mother and her young son are lying on the floor of their lounge sharing a tech device.
Technology Shares

Life360 shares are up more than 1,300% in 5 years. How does it compare to other apps?

Can Life360 compete with the likes of Facebook and Instagram?

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
52-Week Highs

5 ASX 200 shares hitting multi-year highs after strongly rebounding from tariff turmoil

These stocks have hit new price milestones amid a day in the green for the ASX 200.

Read more »

Woman laying with $100 notes around her, symbolising dividends.
52-Week Highs

Which ASX All Ords stock recently became a 10-bagger in 5 years?

Landing a 10-bagger is every investor's dream.

Read more »