After an extremely volatile start to 2014 which saw the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) sink as low as 5,052.2 points, the local stock market has recovered in incredible fashion and is now sitting just 18 points below its six-year high of 5,457.3 points.
While investor confidence had been marred by economic uncertainty in the US and China, strong earnings results and announcements of higher dividends from some of Australia's largest companies have seen many investors return to the market.
Commonwealth Bank of Australia (ASX: CBA) for instance delivered a $4.3 billion half-year profit beating analyst forecasts by around $200 million, while BHP Billiton Limited (ASX: BHP) also beat forecasts by almost $1 billion. Telstra Corporation Ltd (ASX: TLS), Rio Tinto Limited (ASX: RIO) and Australia and New Zealand Banking Group (ASX: ANZ) were amongst the other big names to impress investors.
Thanks to the strong results, the market's gains were widespread over the week, but these companies managed to deliver investors with the greatest returns:
- Fairfax Media Limited (ASX: FXJ) was the best performing stock from the ASX 200 with its shares climbing an astonishing 25%
- Breville Group Ltd (ASX: BRG) jumped 20.6%
- AMP Limited (ASX: AMP) shares rose 10.6%
- Decmil Group Limited (ASX: DCG) increased 14.6%
- G8 Education Ltd (ASX: GEM) increased in value by 12.7%, topping last week's 12.5% gain
- Magellan Financial Group Ltd (ASX: MFG) added 9.9%
- SEEK Limited (ASX: SEK) rose an incredible 22.4% for the five trading days
- Silver Chef Limited (ASX: SIV) jumped 10.1%
- Acrux Limited (ASX: ACR) increased 7.9%
- Ardent Leisure Group (ASX: AAD) gained 9.7%
Foolish takeaway
Based on the results from the reporting period, Citi, which is one of the more bullish brokers, has forecast the market to hit 5,800 points by June 30. Others are confident it can climb as high as 6,000 points by the year's end, meaning that now is still a fantastic time to be buying shares.
