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A$18.79 -0.2  -1.0%

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Sector
Utilities
Size
Large Cap
Market Cap £6.77bn
Enterprise Value £7.83bn
Revenue £7.27bn
Position in Universe 40th / 1852

FACTBOX-Australian stocks and the election

Wed 15th May, 2019 9:04am
SYDNEY, May 15 (Reuters) - Australians will vote in a
general election on Saturday and opinion polls point to a change
of government, with the centre-left Labor Party leading the
incumbent centre-right Liberal-National coalition.
    There are marked differences in their agendas, such as
Labor's taxation treatment of franking credits and tax breaks on
investment housing, which will have an impact on specific
sectors and stocks.  urn:newsml:reuters.com:*:nL3N22M2B9
    The coalition government is campaigning on its current
policies remaining largely unchanged.
    
    MINIMUM WAGE
    * Labor has promised to lift minimum wages, and has already
committed to funding pay rises for childcare workers.
    * Higher wage bills would increase costs for firms that
employ large numbers of workers, such as supermarket chains
Coles  COL.AX  and Woolworths  WOW.AX , pizza-maker Dominos
 DMP.AX , electronics retailer JB Hi-Fi  JBH.AX , conglomerate
Wesfarmers  WES.AX , engineering services firm Downer EDI
 DOW.AX , Qantas and building-sector companies Adelaide Brighton
 ABC.AX , Boral  BLD.AX  and Cimic  CIM.AX .
    
    DIVIDEND TAX REFORM
    * Labor promises to wind back some tax refunds on corporate
dividends.
    * That makes big banks  .AXFJ , Telstra  TLS.AX  and big
mining stocks slightly less attractive for some yield investors,
analysts said.
    * It increases the attractiveness, relative to other shares,
of real estate investment trusts  .AXPJ , which had been
slightly discounted because they never attracted the rebates.
    * Conglomerate Wesfarmers Ltd  WES.AX , iron ore miner
Fortescue Metals Group  FMG.AX  and Westpac Banking Corp
 WBC.AX , among others, have paid extra dividends this year so
that shareholders do not miss out on the tax rebates.
    
    HEALTH
    * Labor is promising to upgrade public hospitals and extend
dental and cancer care subsidies.
    * That could weigh on private hospital operators, such as
Ramsay Health Care Ltd  RHC.AX , which could see fewer patients
as a result, Citi analysts said.
    * Rising subsidies are seen benefiting recipients such as
medical centre operator Healius Ltd  HLS.AX , pathology firm
Sonic Healthcare Ltd  SHL.AX  and diagnostic scanning provider
Integral Diagnostics  IDX.AX .  urn:newsml:reuters.com:*:nL3N21N047
    
    EMISSIONS POLICY
    * Labor plans to set a renewable energy target for 2030 at
roughly double the government's target for 2020 and plans to cap
more polluters than the existing government.
    * Could be positive for contractors, while access to
subsidised solar and batteries promised by Labor would also be
positive, for AGL Energy  AGL.AX  and Origin Energy  ORG.AX ,
according to Deutsche Bank.
    * It is seen dragging on larger polluters and power users
such as Qantas Airways  QAN.AX , Aurizon  AZJ.AX , Wesfarmers,
Woolworths  WOW.AX , and Telstra  TLS.AX .
    
    TELECOM RE-RATE
    * Labor has promised to review Australia's troubled
state-owned broadband network.
    * Analysts expect that will lead to wholesale price
reductions, a relief for the squeezed margins of retailers such
as Telstra, TPG Telecom  TPM.AX , Vocus Group  VOC.AX  and
Optus.

 (Reporting by Paulina Duran, Tom Westbrook, Sonali Paul and
Byron Kaye; Editing by Neil Fullick)
 ((paulina.duran@thomsonreuters.com; +61 2 9321 8177 ; Reuters
Messaging: paulina.duran.thomsonreuters.com@reuters.net))
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