After what has proven to have been a volatile month for investors, the sharemarket has finished May in spectacular fashion with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) rocketing more than 1.5% higher.
While many investors were expecting a cautious start after US equity markets fell overnight, the market appeared to explode with optimism, led predominantly by the nation's biggest banks. The benchmark index is now hovering just below the 5,800 point mark, while the broader ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) has risen 1.4% as well.
Indeed, the banks kicked off the month on the back foot due to their poorer-than-expected earnings results and indications from the RBA that there would be no more interest rate cuts, but they've managed to finish it off on a high note. Leading the banks was none other than Commonwealth Bank of Australia (ASX: CBA), which was trading nearly 2.6% higher at $85.65 late in the session.
Meanwhile, Australia and New Zealand Banking Group (ASX: ANZ), National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC) were also working hard to push the market higher, jumping 1.8%, 2.2% and 2% higher, respectively.
Companies in the resources sector also provided plenty of drive for the market, particularly those exposed to the oil industry. Woodside Petroleum Limited (ASX: WPL) rose 0.7%, Senex Energy Ltd (ASX: SXY) jumped 2.7% while Origin Energy Ltd (ASX: ORG) and Oil Search Limited (ASX: OSH) enjoyed a 3.2% and 2.3% lift, respectively. BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) were also firing, despite a decline in iron ore prices overnight.
Although the Australian sharemarket endured one of its sharpest sell-offs in recent memory at the beginning of the month, days like today act as an important reminder to investors everywhere that time in the market will always prevail over timing the market. Indeed, those who decided to sell in a state of panic have missed out on today's incredible returns, but it is by no means too late to get back in the game.
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