Market Update - 30 April 2013

• Overnight was quiet and fairly flat, if anything maybe a touch of a risk on appetite, but not by much.

• The S&P index closed 12 points higher to 1,593 and it feels like the market is positioning for a more dovish FOMC on Wednesday. Recent US data has been less than compelling and the market seems eager to position for a weaker USD. But of course should market have a sizable correction then of course we could see Dollars again put on its safe haven suit and rally.

• USDMYR opened maybe just a touch lower but still quiet with little action as we are only 4 working days from elections. This one will be an interesting one, the fact that market is sitting out shows the uncertainty everyone seems to be expecting from this round.

• Something from our central bank, BNM Governor Zeti said that economic growth may still reach 5-6% this year, driven by strong domestic demand and investment inflows. Added that recent portfolio inflows have been orderly and that there is no surprise why the MYR has strengthened quite markedly in recent sessions.

• Just to share something from Reuters on OCBC, of course I have to share, “Oversea-Chinese Banking Corp OCBC.SI, Singapore's second-biggest lender, posted a 16 percent fall in first quarter profit, hurt by lower contributions from its insurance unit and weak interest rate margins. OCBC earned S$696 million ($564 million) in the three months ended March, compared with S$832 million a year earlier. Its profit was above the S$656 million average forecast of eight analysts polled by Reuters. Business momentum is strong and asset quality remains sound, Chief Executive Officer Samuel Tsien said in a statement.”