The S&P/ASX 200 has closed 1.7 per cent higher at 6476, the highest since 14 December, 2007. The gains are thanks solely to the financial sector, which had multiple negative overhangs removed with the Coalition's victory on Saturday.

Financial stocks gained 5.6 per cent and added 113 points to the market, which made an overall gain of 110 points. Stocks with surprisingly large gains include NIB Holdings, up 15.8 per cent to $6.82, and Medibank Private is up 11.5 per cent to $3.21.

Among the banks Westpac closed 9.2 per cent higher at $27.75, NAB closed 7.9 per cent higher at $25.81, ANZ Bank closed 7.8 per cent higher at $27.86 and Commonwealth Bank, the single largest stock on the ASX, closed 6.3 per cent higher at $77.40. Commonwealth and Westpac together contributed 60 points to the index today. Without the finance sector the market would have been down.

The biggest decline was Webjet falling 7.7 per cent to $15.50, nearmap closed 5.7 per cent lower at $3.61, and Altium closed 4.6 per cent lower at $31.10.

Point were taken off by BHP falling 0.6 per cent to $38.21 and Sydney Airport dropping 4 per cent to $7.51.