The Winners and Losers
Despite the overall miasma emanating from Canberra and its stupefying effects on the Australian share market, there were some sectors that displayed signs of essential health. The telecommunications space led the gainers for the week, with TPG Telecom also leading the charge on a member-by-member basis, adding 29.23 per cent, following news that company is conserving merging with Vodafone. Telstra benefitted as an extension to this, climbing to $3.26 per share, building on the gains made following the company’s generally positive earnings report from the week prior.
The biggest laggard last week, owing apparently to the chaos in Canberra, was the financial sector, led naturally by a sell-off in the banks. While falling long-term global yields and a recommencement of the Royal Commission into the industry wouldn’t have helped, the lion’s share of the bank’s losses appears to have occurred after the Liberal leadership battler. Arguably, this reflects the market’s perceptions that last week’s political debacle amounts to a hands-down win for the Labor opposition, which have made a platform out of tighter bank regulation, removing tax concessions for property investors, and removing investor’s franking credits.