AMP Capital head of investment strategy Shane Oliver said...

AMP Capital head of investment strategy Shane Oliver said Labor’s focus on increasing taxes for real estate investors would mean that if it lost, there could be a relief rally among financial services and property-related companies.

"But if there is a Labor victory, they might be seen to be more tough in response to the royal commission,” he said.

Dr Oliver said history had shown that since World War Two, Australia’s sharemarket’s average annual returns had been higher under Liberal (12.7 per cent) than Labor (10.7 per cent).

Chris Conway, a senior investment adviser at investors’ newsletter Marcus Today, said Australian investors focused more on individual policies than who was in power.

“I think even the political parties themselves would admit that they have some similarities,” he said.

If Labor succeeds in axing franking credit cash refunds, this could draw investors to stocks that pay high incomes but don’t attach franking credits, such as Sydney Airport and Transurban.

“Liberal is considered to be more business-friendly in terms of helping the banks and big institutions,” Mr Conway said. “The expectation is they won’t win. If they do, you might see a pop in the market.”