The Australian sharemarket has defied an overnight fall in commodity prices to surge beyond the 5600 point mark for the first time in nearly a fortnight. The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) rose by as much as 1.3%, hitting a high of 5607 points late in the session, while the broader ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) also rose 1.2%.
Once again, it was Australia's largest banks that led the market's ascent as investors continued to pile back into the Big Four. Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group (ASX: ANZ) rose a remarkable 2.5% each, while Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd. (ASX: NAB) also jumped 2.1% and 1.9% respectively.
While it's possible that investors are simply buying into the stocks due to the heavy falls in recent months, it's also likely that the market is responding to comments made by legendary investor Warren Buffett. Buffett, also known as the "Oracle of Omaha", made reference to the fact that his company, Berkshire Hathaway, could take up a strategic position in one (or more) of the banks at some point in the next five years.
Elsewhere, Woolworths Limited (ASX: WOW) also played a role in lifting the market despite the fact that it issued a profit downgrade earlier in the day. While it now expects a 12% decline in full-year earnings (after significant items), investors appear happy to learn that the retailer's CEO, Grant O'Brien, will stand down from his role once a replacement can be found.
Woolworths has taken investors on a rollercoaster ride over the last 12 months and investors were beginning to question whether O'Brien was the right person to lead the turnaround. Indeed, a management shakeup may be exactly what the retailer needs.
While it is impossible to determine with any accuracy whether or not the market can sustain its recent gains, it should be noted that there are a number of attractive opportunities currently presenting themselves to long-term investors. With the market still trading at a considerable discount to its recent highs, now might be the perfect time to go bargain hunting.