coaliition win. estimate for mms open monday? , page-44

Shares in salary packaging firm McMillan Shakespeare fell more than 5 per cent in early trade, adding to losses yesterday.

The fall has confused analysts who expected a coalition win to improve the company’s outlook.

Ord Minnett analysts James Lennon said it was unclear why investors were dumping the stock.

‘‘There might be some perception out there that, because the Liberals don’t have as much control of the senate as they’d hoped to have, that it’s going to be difficult to put through policy. But that’s not really relevant in this case because the policy was never enacted,’’ he said.

He said investors could also be responding to the Abbott government’s proposed tax review that would take changes to the next election.

‘‘If there is a tax review, maybe investors now think it’s an appropriate time to put some risk on FBT reform,’’ he said.

‘‘It’s one of the immediate things they say they’ll do.’’

McMillan spent much of last month criticising the Labor government's proposed tightening of the fringe benefits tax regime, as it generates three-quarters of its earnings from financing car leases.

Its shares were buying $12.01 shortly, down 4.8 per cent from yesterday.


Read more: http://www.smh.com.au/business/markets-live/markets-live-asx-eyes-2013-high-20130910-2tgxa.html#ixzz2eS4HJyqt