The Australian stock market has soared to an 11-year high on the back of the Coalition's shock election win.

Investors reacted positively to Prime Minister Scott Morrison remaining in office, with the S&P/ASX 200 index rising by 97 points to 6,462.3 points during early trade on Monday.

This was the highest point since December 14, 2007, before the the global financial crisis worsened and a month after Kevin Rudd was elected Labor PM.

The Australian Securities Exchange benchmark, however, is still shy of the all-time peak reached in early November 2007.

The Australian dollar also rose to 69.05 US cents, up from 68.89 US cents on Friday while the big banks enjoyed gains.

The Australian stock market has soared to an 11-year high on the back of the Coalition's shock election win

Investors appeared to be buoyed at voters rejecting Labor's plan to deprive share-owning retirees, who don't pay income tax, from receiving franking credits.

They also rejoiced at the Opposition losing the May 18 election, after vowing to scrap negative gearing for existing properties and halve the capital gains tax discount from 50 per cent to 25 per cent.

CommSec chief economist Craig James said investors, who had expected a Labor victory, were relieved there would be no major tax policy changes following the re-election of a Coalition government for a third consecutive term.

'It's removed the uncertainty about proposed changes in negative gearing and franking credits,' he told Daily Mail Australia on Monday.

'It was an unexpected result. The bottom line is that it was a surprise victory.

'That has been one factor that's been involved in the bounce of shares because there had been the general expectation that Labor would win government and then they would advance their proposals.'

The big banks were the winners, with ANZ was up 6.27 per cent to $27.47, Commonwealth Bank climbing 5.29 per cent to $76.68, NAB rising 6.90 per cent to $25.57, and Westpac stepping up by 7.5 per cent to $27.315.

Some mining giants also rose, after Labor was punished across north Queensland where left-wing activists and the Greens campaigned against Indian miner Adani's proposed coal project in the Galilee Basin.

Rio Tinto was up 0.78 per cent to $102.14 and Fortescue Metals was up 2.79 to $9.20 after iron ore rose above $US100 a tonne for the first time in five years at the end of last week.

But BHP was down 0.21 per cent to $38.38.

The heavyweight financials - up about five per cent as a sector - along with consumer-related stocks.

Tech shares, however, had the heaviest losses, collectively down 0.83 per cent.

Investors reacted positively to Prime Minister Scott Morrison remaining in office, with the S&P/ASX 200 index rising by 97 points to 6,462.3 points during early trade on Monday

Investors appeared to be buoyed at the election rejecting Labor's plan to deprive share-owning retirees, who don't pay income tax, from receiving franking credits (pictured is defeated Labor leader Bill Shorten with his wife Chloe on Sunday)

Elders was flat at $6.58 after the diversified agriculture firm's first-half profit fell 34 per cent due to hot and dry weather across Australia.

Murray Cod Australia jumped 3.23 per cent to 16 cents after the inland aquaculture enterprise announced that celebrity chef Heston Blumenthal would become one of its stakeholders.

Incitec Pivot was down 3.15 per cent to $3.225 after the chemicals and fertiliser manufacturer's first-half profit fell by more than two thirds following the north Queensland floods.

Scentre was down 0.39 per cent after the property group sold a 50 per cent stake in Sydney's Westfield Burwood shopping centre.