Australia’s benchmark S&P/ASX 200 Index rose 0.64% to 7,982 points over the past trading week, supported largely by a strong performance in financial shares, which climbed 2.55%. As reported by The Motley Fool Australia, the uplift came in a week dominated by the federal budget announcement and Prime Minister Anthony Albanese’s formal call for an election on 3 May.
Financial Sector Outperforms as Market Reacts to Budget Measures
Financials topped the performance chart across all 11 ASX 200 sectors. Among the big banks, Westpac (WBC) led with a 3.37% gain, followed by NAB (+2.49%), CBA (+2.38%), Macquarie (+1.57%), and ANZ (+0.85%). The sector was buoyed by investor optimism following the government’s announcement of tax cuts, which included a drop in the lowest personal tax rate to 15% in FY27 and 14% in FY28.
The budget also set the stage for the coming election debate, with Opposition Leader Peter Dutton proposing to halve the fuel excise for one year if elected—another potential stimulus for consumer-facing sectors.
Mixed Results Across Investment and Financial Services
Beyond the big banks, results were mixed among investment managers and diversified financials. Challenger (CGF) rose 3.83%, Soul Pattinson (SOL) climbed 1.16%, and AMP added 0.79%. Meanwhile, Magellan (MFG) inched up 0.51%, while GQG Partners (GQG) declined 1.36%.
The “buy now, pay later” sector saw sharper declines, with Zip Co (ZIP) dropping 6.18% and Block CDI (ASX: XYZ) falling 7.39%, reflecting ongoing volatility in consumer credit segments.
Insurance Stocks Post Solid Gains
The insurance sector also contributed to the market’s momentum. Suncorp (SUN) led with a 2.75% rise, followed by Medibank (MPL) at 2.73%, IAG at 1.97%, and Steadfast (SDF) with a more modest 0.17% gain.
These movements reflect broader market confidence in defensive sectors amid a period of political and fiscal transition.
Sector Breakdown: Winners and Losers
According to data from CommSec, six of the 11 market sectors closed higher last week:
- Financials: +2.55%
- Energy: +1.99%
- Consumer Discretionary: +0.59%
- Industrials: +0.45%
- Utilities: +0.43%
- Materials: +0.04%
Meanwhile, IT stocks led the laggards with a 3.3% drop, followed by A-REITs (-2.39%) and Healthcare (-0.91%).
