thoughts on carsales, page-11

decisive win to boost business and consumer sentiment – TRADING BUY (BLD, CRZ, MYR and JBH)

•As widely expected the Liberal-National Party coalition won the election decisively, winning a majority of more than 30 seats in the 150-seat parliament at Saturday's national elections

•A decisive decision is ideally what the market needed allowing the coalition to govern in their own right and should provide a strong boost to both business and consumer confidence. This coupled with the continued benefit of the lower A$ and the accommodative stance of the RBA should provide a positive outlook for the Australian economy.

•The coalition win is particular beneficial for the mining, aviation and energy sectors with Prime Minister Tony Abbott promising to abolish the carbon and mining taxes installed under Labor.

•The market has been factoring in a Coalition win for the last month, which has largely been accounted for in stock movements. Moving forward we believe the retail and domestic housing and construction sectors should continue to be the key beneficiaries as we start to progressively see an increase in consumer and business sentiment along with recent cuts by the RBA working their way through the economy.

•Our key picks for stocks leveraged to a change in government include (BLD, CRZ, MYR and JBH)

http://www.fostock.com.au/announcements/a-decisive-win-to-boost-business-and-consumer-sentiment