As the 2025 Australian Election Approaches: Here are 6 ASX Stocks to Watch

Ujjwal Maheshwari Ujjwal Maheshwari, April 21, 2025

With the 2025 Australian election approaching, investors are focusing on the Australian Securities Exchange (ASX) to understand how the election may impact market performance. Elections typically create some degree of market uncertainty, but the extent of that uncertainty varies significantly based on the political landscape, economic policies, and global economic environment.

 

Understanding the Election’s Market Implications

In Australian federal elections, political shifts can influence sectors, especially in energy, infrastructure, and healthcare. Historically, however, the impact of elections on market performance has been minimal. Studies show that market fluctuations during election periods are usually short-lived, with political changes having minimal long-term effects unless accompanied by significant policy shifts or external economic factors.

Dr Shane Oliver, Head of Investment Strategy and Economics at AMP, has said that elections in Australia are unlikely to cause massive market movements, as the economic policies of the major political parties tend to be broadly aligned. However, a closely contested election or a change in government could create short-term market volatility due to market perceptions and investor sentiment.

For instance, if a new government were to implement significant policy changes, such as altering tax laws or introducing new regulations that affect key industries, the stock market could experience initial reactions. That said, Australian investors have historically remained confident in the ASX’s resilience, which has weathered political transitions without significant downturns.

 

The Influence of Global Economic Factors

While the election is a pivotal moment for Australian politics, global economic trends have far-reaching consequences for the ASX. In recent years, the market has seen increased volatility due to international economic shifts, geopolitical tensions, and external economic pressures. For example, the US-China trade war has played a key role in shaping market sentiment, causing fluctuations in commodity prices, particularly in sectors like mining, energy, and manufacturing, which are critical to the Australian economy.

The 2025 election comes amid heightened uncertainty over the global economic landscape. Increased energy prices, the lingering impacts of the pandemic and Russia-Ukraine war on global supply chains, and geopolitical tensions have all contributed to global instability. For Australian investors, this makes diversification across different sectors and geographical areas even more important, as market volatility can be influenced by factors beyond the national election.

Moreover, climate change policies, which may be introduced or modified in response to the upcoming election, could alter market dynamics in sectors like energy, mining, and agriculture. Investors are likely to closely monitor how the political landscape might affect regulations on carbon emissions, renewable energy incentives, and fossil fuel industries.

 

Six ASX Stocks to Watch as the 2025 Australian election approaches!

In light of the 2025 federal election and global economic factors, investors should pay close attention to these six ASX-listed companies that are well-positioned to benefit from either political or economic shifts:

1. Woodside Energy (ASX: WDS)

As one of Australia’s largest independent oil and gas companies (if not the largest), Woodside Energy is poised for growth…so long as it is under a government that supports the oil and gas sector. Woodside has a strong track record, with notable projects such as the Scarborough and Pluto LNG developments enhancing its market position in the energy space.

 

Why Watch?

But with the ongoing uncertainty over the future of oil and gas, any government hostile to it will put an additional spanner in the works. A minority Labor government relying on the Greens may have to put additional red tape on the sector such as more stringent approval processes, or perhaps requirements for some gas to go into the domestic market. There is heavy demand for natural gas and LNG in Asia, which is why the bulk of LNG produced in Australia goes there.

Concerns about a change of policies post-election aside, there are plenty of things to like. Woodside’s strong dividend yield of approximately 9.5% makes it a popular choice for income-focused investors. The company is also well-positioned to benefit from higher global energy prices and infrastructure investment in the LNG space, especially as Scarborough LNG enters production in late 2026…so we hope.

 

2. Mineral Resources (ASX: MIN)

Mineral Resources operates in the mining sector. provides mining services, but also owns its own mines, including lithium, gold and iron ore mines not to mention an investor in a handful of small cap explorers. With the transition to cleaner energy sources and the booming demand for electric vehicles (EVs), Mineral Resources is set to benefit from the global shift toward green technologies.

 

Why Watch?

As with Woodside, the risk of a government hostile to resources production (i.e. a potential Labor-Greens minority government) could be a threat. But a friendly government could be a vital asset. The West is keen to diversify its critical minerals supply chains away from China and Mineral Resources is keen to benefit.

This is particularly true with respect of Lithium. Lithium is a crucial component in the production of batteries for electric vehicles, which is expected to experience rapid growth in the coming years. What is more is that it has vital exposure to lithium.

Obviously, the company isn’t in the best of shape with low iron ore prices and scandals relating to Chris Ellison have taken their toll. In its most annual results, the company chose not to pay a dividend for the first time in a decade.

 

3. Pro Medicus (ASX: PME)

Pro Medicus is a leading Australian healthcare technology company that develops medical imaging software and IT solutions. The company’s Visage software is used globally by radiologists, hospitals, and healthcare providers to view and transfer medical images. It is focused on the US market, and while it is still underpenetrated in the markets, PME’s extremely high margins and long-term contracts with high profile customers has won over many investors.

 

Why Watch?

With Pro Medicus being one of the standout growth stocks in the healthcare sector but focused on the US, you may argue at first glance the election has nothing to do with it. The company benefits from increasing demand for digital healthcare solutions and the shift toward telemedicine and cloud-based health services.

But the political environment, particularly regarding healthcare policy, will have a direct impact on Pro Medicus’ market opportunities. It remains to be seen what the next government will do as far as the relationship with the US is concerned. The Trump administration is particularly wary of Australia’s healthcare sector and one cannot rule out the possibility that the company could get caught in the crossroads.

 

4. EcoGraf (ASX: EGR)

EcoGraf is focused on producing high-purity graphite used in lithium-ion batteries, which are integral to the renewable energy transition and electric vehicle industry. As demand for cleaner energy grows, EcoGraf’s operations are becoming increasingly vital.

Why Watch?

EcoGraf’s focus on sustainable technologies positions it well within the renewable energy and electric vehicle sectors. The growing demand for lithium-ion batteries, driven by the shift toward electric vehicles, places EcoGraf in an advantageous position. But if a new government is keen to tone down efforts to decarbonise, EcoGraf’s role in supplying materials for energy storage solutions may become less critical.

 

5. NextDC (ASX: NXT)

NextDC is a leading Australian data centre operator, providing critical infrastructure for cloud services and data storage. With the increase in data consumption and the rapid growth of digital services, NextDC is benefiting from the growing need for secure, scalable data centres.

Why Watch?

NextDC stands to benefit from the growing digital infrastructure market, particularly as cloud computing and data storage become integral to various industries, including finance, technology, and healthcare. But it has made just about all the growth that can happen in the private sector in Australia and is now looking overseas for its future expansion. This will come down to whether or not the next government is keen to play in this brave new protectionist world.

Australian governments have invested in digital infrastructure and data security. If this continues, NextDC is well-positioned to benefit from the expansion of the digital economy – but it remains to be seen if this will happen.

 

6. Life360 (ASX: 360)

Life360 offers a platform that provides family safety solutions, including location tracking, emergency alerts, and communication tools. The company is gaining traction as its user base grows, and its innovative technology becomes more integrated into consumers’ daily lives.

Why Watch?

Life360 is a US company that first listed on the ASX, then on a NASDAQ. Even if the company continues to grow, it remains to be seen if it’ll stay dually listed? Could it leave the ASX, perhaps because of accusations it has been mismanaged and that there is less of a growth opportunity amongst investors here? Or could the Trump administration force its hand and make it become solely listed on the NASDAQ.

The next government of Australia has a challenge on its hands to maintain the country as an investment destination and the reputation of its public markets.

 

Conclusion

As the 2025 Australian federal election approaches, investors should remain vigilant, considering both domestic political developments and global economic factors.

While elections may not drastically alter market dynamics, the combination of policy shifts and international events can influence specific sectors and companies. Monitoring stocks like Woodside Energy, Mineral Resources, Pro Medicus, EcoGraf, NextDC, and Life360 can provide insights into potential investment opportunities during this period. But if you already invest in these and other companies, you need to keep an eye on what the outcome of the election might mean for them.

 

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