Australian stock market surges to 11-year high off the back of the Coalition’s shock election win 

Mail Online | 5/20/2019 | Stephen Johnson For Daily Mail Australia;Australian Associated Press
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The Australian stock market has soared to an 11-year high on the back of the Coalition's shock election win.

Investors reacted positively to Prime Minister Scott Morrison remaining in office, with the S&P/ASX 200 index rising by 97 points to 6,462.3 points during early trade on Monday.

Point - December - Crisis - Month - Kevin

This was the highest point since December 14, 2007, before the the global financial crisis worsened and a month after Kevin Rudd was elected Labor PM.

The Australian Securities Exchange benchmark, however, is still shy of the all-time peak reached in early November 2007.

Dollar - Cents - Cents - Friday - Banks

The Australian dollar also rose to 69.05 US cents, up from 68.89 US cents on Friday while the big banks enjoyed gains.

Investors appeared to be buoyed at voters rejecting Labor's plan to deprive share-owning retirees, who don't pay income tax, from receiving franking credits.

Opposition - May - Election - Gearing - Properties

They also rejoiced at the Opposition losing the May 18 election, after vowing to scrap negative gearing for existing properties and halve the capital gains tax discount from 50 per cent to 25 per cent.

CommSec chief economist Craig James said investors, who had expected a Labor victory, were relieved there would be no major tax policy changes following the re-election of a Coalition government for a third consecutive term.

'It - Uncertainty - Changes - Gearing - Credits

'It's removed the uncertainty about proposed changes in negative gearing and franking credits,' he told Daily Mail Australia on Monday.

'It was an unexpected result. The bottom line is that it was a surprise victory.

Factor - Bounce - Shares

'That has been one factor that's been involved in the bounce of shares because there had been the...
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