Australian banks all lost weight from their share prices following the budget announcement of a new levy to raise more than $1.5 billion a year.
However, not all companies listed the ASX have taken a hit to their market value as a result of the budget.
According to analysis by Credit Suisse, those doing well include some retailers, fund managers from the modest increase in superannuation inflows, residential developers as the government tries to provide some relief to first time buyers and increase housing supply, plus media companies.
“The main budget losers are the big four banks and Macquarie Group,” write analysts Hasan Tevfik and Peter Liu in a note to clients.
They calculate that the new levy, taking more than $1.5 billion a year from the Commonwealth, Westpac, ANZ, NAB and Macquarie, would take an average 5% off the profits base of the five.
This is somewhere between 1% and 2% of ASX200 profits.
“Currently our analysts are forecasting a $7bn increase in profits for June 2018 or 7%,” the analysts write.
“All other things equal, the levy will drag down this forecast.”
However, Credit Suisse is maintaining its forecast that the ASX 200 will reach 6000 by December
Among the winning companies from the budget are AMP, APN News & Media, Nine Entertainment, Southern Cross Media, BT Investment, Harvey Norman and JB Hi-Fi.
Here’s how the analysts see the budget impacting specific companies:
“Some of the healthcare companies are also expected to benefit but this will only commence in FY19,” the analysts write.