6 ASX Stocks to Watch as the 2025 Australian Elections Approach

With the 2025 Australian federal 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, explains 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 ongoing effects of COVID-19 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

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:

Woodside Energy Group Ltd (ASX: WDS)

As one of Australia’s largest independent oil and gas companies, Woodside Energy is poised for growth 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?

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. Additionally, as the Australian government continues to focus on energy security and infrastructure development, Woodside stands to profit from both long-term energy contracts and government policies aimed at bolstering domestic production.

Future Outlook

With global demand for natural gas and LNG set to grow, particularly in Asia, Woodside is well-placed for future expansion. The company’s recent merger with BHP’s petroleum division also strengthens its financial stability and provides access to new reserves.

Mineral Resources Limited (ASX: MIN)

Mineral Resources operates in the mining sector and is a leader in the extraction of minerals critical to modern infrastructure, such as lithium, iron ore, and graphite. 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?

The company’s robust portfolio of mining operations in Western Australia positions it to benefit from the increasing demand for key commodities, particularly 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.

Future Outlook

Mineral Resources’ expansion into the renewable energy and battery materials sectors makes it a strong contender as the demand for sustainable materials rises. The government’s focus on green energy policies, regardless of the election outcome, should further solidify the company’s market position.

Pro Medicus Limited (ASX: PME)

Pro Medicus is a leading Australian healthcare technology company that develops medical imaging software and IT solutions. The company’s software is used globally by radiologists, hospitals, and healthcare providers, and its financial performance has consistently outpaced expectations.

Why Watch?

With an impressive 1-year return of 169.54%, Pro Medicus is one of the standout growth stocks in the healthcare sector. The company benefits from increasing demand for digital healthcare solutions and the shift toward telemedicine and cloud-based health services.

Future Outlook

The aging population and the growing focus on healthcare technology are long-term tailwinds for Pro Medicus. With an expanding international footprint and its recent partnership with major healthcare providers, Pro Medicus is poised for continued growth. The political environment, particularly regarding healthcare policy, will have a direct impact on Pro Medicus’ market opportunities.

EcoGraf Limited (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.

Future Outlook

As governments and private enterprises ramp up efforts to decarbonize, EcoGraf’s role in supplying materials for energy storage solutions is becoming more critical. The global push for clean energy solutions and electric vehicle adoption makes EcoGraf a stock to watch.

NextDC Limited (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. Its robust portfolio of data centres, combined with government policies supporting digital infrastructure, positions NextDC for strong growth.

Future Outlook

With the Australian government continuing to invest in digital infrastructure and data security, NextDC is well-positioned to benefit from the expansion of the digital economy. Moreover, the company’s recent partnership with global tech firms is expected to drive further growth.

Life360 Inc (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’s unique value proposition in the personal safety and family monitoring space has resonated with millions of users globally. The company’s strong year-over-year performance and its focus on user-centric solutions make it an appealing stock for growth investors.

Future Outlook

As the company expands its services and adds new features to enhance user safety, Life360 is positioned for significant growth. Its role in the growing family safety tech market, combined with increased concerns over personal safety and security, provides Life360 with strong tailwinds for future success.

 

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.

With careful consideration of the political and economic landscape, investors can make informed decisions, ensuring that their portfolios are well-positioned to thrive in the lead-up to and beyond the 2025 federal election.

 

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