Last week was tough for Australin investors as the local S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) index gave up more ground, falling over 1.1% for the week to take the year-to-date gain below 5% for the first time since early February.
The great takeaway for investors was that some of the nation's best companies managed to strongly outperform despite the index at one point losing over 2.5% in just two trading days.
10 Top Blue Chips
Cochlear Limited (ASX: COH) was the star performer among blue-chip stocks following a plunge in the Australian exchange rate versus the US dollar. The company, which is heavily exposed to currency fluctuations, rose 11% over the week despite no news flow.
James Hardie Industries plc (ASX: JHX) shares jumped nearly 8% over the week on news that it will pay a special dividend of 22 cents on top of its regular final dividend of 27 cents a share, which nicely complemented a 12% jump in adjusted net profit for the year ended March 31.
A lower Australian dollar appeared to be the major reason for outperformance during the week. Currency exposed companies rose strongly, with Caltex Australia Limited (ASX: CTX) 5% higher, Sydney Airport Holdings Ltd (ASX: SYD) up nearly 3.5% and Ramsay Health Care Limited (ASX: RHC) surging 4.5% higher as investors recalculated profit margins based on a better conversion into Australian dollars.
SEEK Limited (ASX: SEK) shares also outperformed the market, rising nearly 4% following positive news flow out of China, where the group owns part of a major job advertisement network, while ResMed Inc. (CHESS) (ASX: RMD) recovered 3.7% following a devastating 30% fall the week before!
Two mining-related companies- Cimic Group Ltd (ASX: CIM), formerly Leighton Holdings Limited, and Incitec Pivot Ltd (ASX: IPL) ended the week over 3% stronger, potentially as a result of the infrastructure spending announced during the budget earlier in the month.
And finally, Auckland International Airport Ltd (ASX: AIA), rose 4.2%, taking its year-to-date gain to over 7% following strength in the New Zealand economy.
