Airline Shares Are Up With The New Government Promising To Scrap The Carbon Tax

Qantas and Virgin Australia were among the top 20 performers on the ASX today, with their respective share prices closing up more than 3.5% as the new Coalition government prepares to be sworn in.

CommSec market analyst Steven Daghlian pinned the rise on prime minister elect Tony Abbott’s promise to scrap the carbon tax, which cost Qantas $106 million last financial year.

Abbott’s LNP beat the incumbent ALP in the federal election on Saturday to win a majority of lower house seats, and has promised to begin winding back the carbon tax within weeks of being sworn in.

Qantas shares today rose 3.79% to close at $1.37, while Virgin Australia shares rose 3.57% to $0.435.

The wider ASX 200 index rose about 0.7% to 5181.5, led by the materials and resources sub-indices, which rose 1.34% to 128.78 and 1.19% to 4136 respectively.

Via, here’s the ASX 200 today:

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