Thailand’s SET Index closed at 1,419.76 points, increased 15.77 points or 1.12% with a target price at 45.7 billion baht. The analyst stated that the Thai stock market continued to edge higher on a positive sentiment, following the Fed’s holding interest rates and a dovish signal from the central bank. Meanwhile, the dollar index and bond yields declined, opening for a wider earnings yield gap and resulting in risk assets being more attractive.
The analyst expected the power generation sector to benefit the most such as BCPG, BPP and EGCO. The trend is expected to continue next week.
The analyst recommended investors to monitor non-farm payroll for October tonight, and inflation and trade balance of China next week. These data should give a tailwind to the stock market if in line or better than expected.
The U.S. 10-year Treasury note yield is now down more than 20 basis points in a span of just four days, which is not the result of Fed’s policy rates but rather a shift in US Treasury borrowing.
The US 10-year bond yields fell from 4.877% on October 30 to 4.663% on the trading hour of Asian markets on November 3, marking a drop of around 21 basis points. This is the largest pullback so far since early October.
Long-term bond yields had been retreating even before the Federal Reserve announced the hold rate on Wednesday, which could be the result of an announcement by the US Treasury department slowing the pace of it issuing longer-term debt.
