The S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) rose a mere 8.7 points or 0.2% this week in what proved to be a very volatile five trading days.
While it ended on a good note with the market adding 44 points on Friday, conditions during the week were shaky after Janet Yellen, the new US Federal Reserve chair, indicated that interest rates could begin to rise as soon as April 2014 – far earlier than the market had been anticipating. The good news is that GDP is set to expand which would boost earnings growth. This contributed towards positive sentiment by the end of the week.
Here are some of the week's best performers:
- Boart Longyear Ltd (ASX: BLY) rose 12.5%
- G8 Education Ltd (ASX: GEM) delivered a crushing 17.2% return
- Wotif.com Holdings Limited (ASX: WTF) increased in value by 13%, thanks largely to a 23% jump on Wednesday (before it plummeted 11.3% on Thursday)
- Trade Me Group Ltd (ASX: TME) was trading 11% higher by the end of the week
- Panoramic Resources Limited (ASX: PAN) gained an astonishing 31.7%
- Neon Energy Limited (ASX: NEN) climbed 17.4%
- McAleese Ltd (ASX: MCS) appreciated 12.2%
There were a number of companies that were less fortunate than those mentioned above:
- Newcrest Mining Limited (ASX: NCM) plummeted 12.8%
- Myer Holdings Ltd (ASX: MYR) deteriorated 8.9%
- Metcash Limited (ASX: MTS) ended the week at a 9 year low after sliding 9.5%
- Ten Network Holdings Limited (ASX: TEN) lost 11.3%
- OZ Minerals Limited (ASX: OZL) fell 7.8%
- Silver Chef Limited (ASX: SIV) dropped 10.5%
- Webjet Limited (ASX: WEB) booked in a 7.7% loss
- Beadell Resources Ltd (ASX: BDR) depreciated 14.5%
- Maverick Drilling and Exploration Ltd (ASX: MAD) lost 14.3%
Foolish takeaway
Although it is easy to become overwhelmed by the market's volatility, it is important to ride it out and maintain your composure by focusing on the long-term. As quality companies drop in value, it also opens up incredible opportunities to buy stocks on the cheap.
