Since the budget was delivered on Tuesday 2 April, the Australian share market is down 0.5%. All sectors have traded lower except for the materials sector. So is this an indication of pessimism from voters or simply normal market gyrations?

Firstly, elections have seen greater unpredictability in the last few years. From Brexit to Trump, pollsters have struggled to predict outcomes. Post-election, one of the most powerful stimulants has been tax cuts. This has helped propel the US stock market go to record highs.

So, what does the budget mean for Australian shares and the share market?

The proposals in the 2019 budget haven’t yet passed legislation and may differ if they become law. Tax cuts are a mild positive for consumer companies. However, most of this is not until 2022-2023, which means investors will likely discount this news.

Domestic healthcare should benefit from the $1.1 billion rise in primary care funding and a $309 million boost to imaging. Diagnostic imaging companies such as Capital Health Ltd (CAJ), Integral Diagnostics Ltd (IDX), Sonic Healthcare Limited (SHL) and Healius Limited (HLS).

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