Market continued the upward trend and rebounded strongly in 1st Qtr. 2021 with STI Index up by around +9%. With improving economic situation and more good news on economy recovery and the progress on vaccination, “old economy “stocks like bank, Oil & Energy, Consumer staples are having a good run recently while the Tech or growth stocks having a pullback due to increase in US 10 Years Treasury Yield.
As I mentioned in my previous blogpost ( Volatile Market: A New Normal ), the pullback might just be a temporary “dip” in the market as market still being “flooded” with so much of liquidity, money just moved around from one sector to another sector or so called "sector rotation". Increasing 10 years bond yield (or interest rate in general) might also be the good news for banking sector as this may improve their NIM while FED remain committed to keep the short-term rate "ultra low" for foreseeable future....
