Best annual result for shares since the GFC LOCAL stocks have delivered their best annual return since the lead-up to the financial crisis, despite recent weakness caused by fears of an imminent end to central bank bond buying. The S&P/ASX 200 index closed the June financial year at 4814.5 points, up 17.3 per cent -- the best full-year result since the 23.7 per cent, pre-GFC surge of 2006-07. Octa Phillips head of private wealth Patrick Trindade saw 2012-13 as a "tale of two markets," with offshore yield-chasers pushing up the banks, Telstra and other high-yielding stocks. "Then we see the yield plays sold off over the last two months, as offshore holders exit due to concerns over the (declining) Australian dollar," Mr Trindade said. Over the course of the financial year, the value of listed stocks rose by $200 billion to $1.34 trillion. This was still short of the $1.6 trillion peak in September 2007. The dollar slid 9.3 per cent, having peaked at $US1.06 in September and tumbling to US92.46c last night as the China-fed demand for resources began to taper. The resources sector retreated 10 per cent, which was the biggest drag on the market. Analysts a year ago forecast a 23 per cent rise in earnings per share for the sector but now expect EPS to shrink 9 per cent. Heavyweights BHP Billiton, Rio Tinto and Fortescue Metals are trading at, or below, GFC levels. In mid-May, the environment looked brighter than it does now, with the market peaking at 5220 points. The 27 per cent gain at that point would have eclipsed the 2006-07 increase of 23.7 per cent. The May peak, however, was still well short of the November 2007 all-time high of 6828 points. Wilson Asset Management's Geoff Wilson said the "sell in May and go away" mantra -- originally a reference to the lull in the northern summer -- again proved right. He said the market performed well in 10 months of the year and the damage was inflicted in only two (May and June). "It doesn't feel that good given we were up close to 30 per cent at one stage," he said. Banks stocks rose strongly over the year with RBS Morgans senior private client adviser Bill Chatterton saying the rise showed stocks with high dividends were maintaining their favour. Describing a "tumultuous" period for the mining sector, Bizzell Capital portfolio manager Peter Wright said investors had been behaving as if every slated resource project would be initiated -- a mindset that had now changed to the radical extreme. "There's been a growing level of circumspection from the majors," he said. Now every greenfields project is being priced as if nothing will ever happen again, which is just as unsustainable as the attitude 12 months ago. Mr Wright said confidence in the junior sector had been shattered. With the extreme pessimism, volumes are almost non-existent in this space.