MCI (P) 137/11/2012 Ref No: RM2013_0028 1 of 16

Regional Market Focus

Phillip Securities Research Pte Ltd

8 February 2013

Singapore

CapitaMalls Asia Ltd – Company Results Recommendation: Neutral Previous close: S$2.08 Fair value: S$2.11

4Q12 revenue increased 71% y-y to $113.6mn, on higher contribution from Japan and fee incomes

4Q12 adj PATMI increased 80.5% y-y to $51.3mn

Newly opened malls during 2012 to contribute meaningfully in FY13

Raise fair value to $2.11 but downgrade to Neutral on valuation ground Starhub – Results Recommendation: Reduce Previous close: S$4.01 Fair value: S$3.61

4Q12 Net income of S$87.9 beat expectations on higher profit margins on equipment sales

Management guides single digit revenue growth, EBITDA margin of 31%, Capex of 13% of operating revenue, and DPS of 20.0 cents for FY2013

Downgrade to short-term “Reduce” due to dividends disappointment, with upward revised TP of S$3.61

With strong free cash flow, stable growth and attractive dividend yields, Starhub remains a long term BUY

Thailand

PTT – Trade Flash Recommendation: ACCUMULATE Previous close: Bt361 Fair value: Bt412

We expect PTT to report a 4QCY12 net profit of Bt26,468mn, down 27%q-q. For all of CY12, net profit is estimated to be Bt108,422mn, up 3% y-y.

Higher gas sales volume and upside from its joint venture PTTAC would be key drivers of earnings growth for PTT this year.

At current prices, we rate PTT shares an ‘ACCUMULATE’ with a CY13 target price of Bt412/share.

Hemaraj Land and Development – Company Update Recommendation: NEUTRAL Previous close: Bt3.64 Fair value: Bt3.50

Core business appears to see bright prospect, which will continue to drive earnings growth further in 2013.

A larger-scaled project at Koh Larn, Pattaya is expected to see further development within this year.

We downgrade our rating on HEMRAJ to a ‘NEUTRAL’ with a target price of Bt3.50/share.

Hong Kong

Dongjiang Environmental (895.HK) – Cautiously Optimistic to Future! Recommendation: NEUTRAL Previous close: HKD 37.85 Fair value: HKD 34.67

Dongjiang has invested over 700 million RMB to MWT business, with the winning of bidding of catering garbage business, its market position will be consolidated.

Dongjiang’s IWT business is also in expansion progress, the new project which located in Jiangmen will strengthen its leading position of the industry in southern provinces.

The company has signed a contract of 2 billion RMB credit with Xingye Bank, it will provide great support in Dongjiang’s financial position.

The EPS of 2011 is CNY 1.62. We estimated that the EPS in 2012 and 2013 will be CNY 1.69 and 1.85. The target price in next 6 months is HKD 34.67 under 15x PE. The rating is Neutral.

Regional Market Focus

8 February 2013

2 of 16

Strategy Views

- Country Strategy: China & HK, 28 Jan / S’pore, 26 Dec / Thai, 19 Dec - Global Macro, Asset Strategy: 24 Jan, Update / 4 Jan / US, 21 Dec / ASEAN, 5 Dec

Morning Commentary

- STI: -0.45% to 3261.8 - SET: -0.04% to 1499.8 - JCI: +0.09% to 4503.2 - KLCI: +0.34% to 1619.6 - HSCEI: -1.41% to 11682 - Hang Seng: -0.34% to 23177 - Nikkei 225: -0.93% to 11357.1 - ASX200: -0.93% to 3275.7 - India NIFTY: -0.34% to 5938.8 - S&P500: -0.18% to 1509.4 OCBC update – GEH results

By Ken Ang, Financials and Telcos Analyst Great Eastern Holdings, a subsidiary of OCBC(Reduce, TP: S$8 30), reported their 4Q12 results of S$225.6 million, up 227% y-y, but lower 64% q-q from a high base. Profit from life assurance was higher 314% y-y, 11% q-q, to S$210.1 million. This was due to strong performances from its non-participating funds, likely due to the strong equities and bonds market performance. This amount, which flows into OCBC’s non-interest income, was much higher than our forecast. We therefore expect an upward surprise for OCBC’s 4Q12 results. OCBC will be announcing their results on 15 Feb 2013. MARKET OUTLOOK:

By Ng Weiwen, Macro Analyst While the S&P 500 and DJIA are near their cyclical highs, a pullback might be on the cards. Specifically, both indices printed a 'dragonfly doji' for two consecutive trading days where the open and close are around the high of the day. ECB Draghi signalled discomfort over the recent strong euro appreciation which will understandably weigh on EZ nascent and fragile recovery. Looking ahead, our base case scenario is for ECB to stand pat but with significant odds of a 25bps cut in the main refinancing rate should the Euro continue to appreciate strongly -especially against its main trading partners. In Greater China, the H-shares China Enterprise Index pierced through while the Hang Sang Index tested their respective 40dma support level (consistent with our guidance yesterday). Should the bulls fail to overwhelm the bears and close Tues breakaway gap (formed to the downside), we suggest to short H Shares Index HKD5 CFD and Hong Kong 40 Index HKD5 CFD, especially if their respective 40dma support levels are also broken; a weaker-than-expected Chinese trade data today might just be the catalyst. In Malaysia, near-term weakness in the KLCI is likely to persist owing to political risk ahead of the 13th General Elections (pls refer to our ASEAN Macro Strategy report for details). The KLCI continued to close below its 200dma support level, and selling pressure might intensify- especially if trade and industrial production data (released at noon today) disappoint. Near-term support at around 1600. In Singapore, STI has closed precariously below its 10dma support level. Near-term support at 3250 support level. On the other hand, 3400 will be the immediate psychological resistance level and the next major key resistance will be 3800 (attained in 2007). Near-term downside risks -that could throw sand to the wheels, dampen risk appetite and bring the risk rally to a halt- are as follows: (i) Fiscal uncertainties in the US: 1st March sequester, the need to raise its US$16.4tn debt limit after 18th May, absence of a medium-term deficit reduction deal (ii) In the EZ, the immediate macro risk on the horizon is the Feb 24-25 Italian elections. With the Monte Paschi scandal, odds of a Berlusconi victory have increased according to pre-election poll surveys. A governing majority by Berlusconi (though not our base case scenario) will cast doubt on Italian reform commitments, result in another round of bond market turbulence and possibly forcing the Italian government to have the dubious honour of being the first nation to seek aid from ECB’s OMT program. (All equity indices mentioned in this note are tradable with Phillip CFDs or ETFs)

Regional Market Focus

8 February 2013

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MACRO DATA

In US, initial jobless claims declined 5,000 wk-on-wk to 366,000 for the week ending Feb 2, consistent with a sluggish labour market recovery. In Germany, manufacturing output rose 1.2%m-m in Dec after registering stagnant growth in the preceding month. In Japan, core machinery orders rose 8.4% q-q, saar in 4q12 after registering declines in the preceding two quarters, signalling a nascent revival in capex business investments.

Regional Market Focus

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Singapore The benchmark STI closed lower to 3,261.77 (-0.45%). 3.4bn shares were traded

with value worth S$1.6bn. While results for the quarter beat our estimates, our analyst downgraded his

rating on Starhub to Reduce, as he believes that stagnant dividend levels could disappoint market expectations.

CMA results met our expectation with improved operating incomes from China in particular. Our analyst expects further improvement in FY13 as newly opened malls start to contribute, but downgrades to Neutral on valuation ground.

For 1Q2013, we believe that cyclical stocks in the Industrials space could do well in the near term: SIA (Buy, TP: S$13.40), Keppel Corp. (Accumulate, TP: S$12.38) & NOL (Accumulate, TP: S$1.36).

Top picks for the year are Pan United (Buy, TP: S$0.88), SIAEC (Buy, TP: S$6.10) & Capitaland (Accumulate, TP: S$3.97). Pan United is a dominant supplier to the construction industry in Singapore and we expect the company to perform well given the strong pipeline of infrastructure work over the next few years. Although current price has overshot our TP, and may experience short term profit taking, we look forward to 4q12 results to reassess our TP. SIAEC is a key beneficiary of the aviation growth story in the region and offers excellent dividend yields. Capitaland would be a beneficiary of the stabilisation of property prices and bottoming out of economic conditions in China.

Close +/- % +/-FSSTI 3261.77 -14.76 -0.45P/E (x) 10.29P/Bv (x) 1.48

2.84Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

3500

2/7 5/7 8/7 11/7 2/7

Source: Bloomberg

Thailand Two straight days of net foreign selling kept Thai stocks in the red throughout the

session on Thu amid selling in key energy, bank and food counters. Wild intraday swings are likely to continue in the Thai stock market today, the

same as in the previous session but more weakness could be in store for Thai stocks amid a wave of heavy selling by foreign investors. As today is also the last trading day ahead of the Chinese New Year when several stock markets in Asia will be closed, some risk-averse selling is likely to continue. Euro-zone economic uncertainty will also remain in the market’s spotlight especially after European Central Bank President Mario Draghi said yesterday that economic activity in the euro area should gradually recover later in 2013 but there are more negative risks than positive ones. The bank’s concerns about the euro’s advance and its effect on the region’s economy also sent the single currency sharply lower and strengthened the US dollar in Asia this Fri. The Thai baht this morning (0800 hrs Thailand time) weakened slightly to 29.80 to the US dollar. Overall we expect the composite SET index to trade in a range of between1490-1505 today.

For short-term strategy, we recommend selective plays with focus on laggards relative to peers/broader market and expected to report impressive results and pay out attractive dividend.

Resistance on the main index is seen at 1505-1512 and support at 1496-1486 today.

Close +/- % +/-SET INDEX 1499.81 -0.54 -0.04P/E (x) 18.14P/Bv (x) 2.52

2.60Dividend Yield

STOCK EXCH OF THAI INDEX

900

1000

1100

1200

1300

1400

1500

1600

2/7 5/7 8/7 11/7 2/7

Source: Bloomberg

Indonesia

Most Indonesian stocks moved upward on Thursday (07/02), though most of major Asian markets closed lower after the negative sentiment on the European economy, which might affect the demand of products from Asia. The Jakarta Composite Index gained 4.172 points, or 0.09%, to close at 4,503.148. The increase included four of the 9 major industry groups, with miscellaneous industry sector was up 1.23%, finance increased 0.50%, and consumer goods sector improved 0.79%. Blue-chip shares also increased on Thursday, as the LQ45 index that tracks these stocks added 0.545 points, or 0.07%, at 770.394, with 11 of its 45 components increased. 128 shares advanced, 112 shares declined, and 112 shares remained unchanged Thursday on the Indonesia Stock Exchange, where 4.22 billion shares worth IDR 4.10 trillion changed hands on the regular board. Foreign investors accumulated net purchases worth IDR 2,070.92 billion.

Indonesian stocks will likely decline today, after negative closes on US markets overnight that may lead to declines on Asia markets. We expect the Jakarta Composite Index (JCI) to trade with support and resistance at 4,471.66 and 4,521.78.

Close +/- % +/-JCI Index 4503.15 4.17 0.09P/E (x) 17.97P/Bv (x) 2.94

2.01Dividend Yield

JAKARTA COMPOSITE INDEX

3400

3600

3800

4000

4200

4400

4600

2/7 5/7 8/7 11/7 2/7

Source: Bloomberg

Regional Market Focus

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Sri Lanka The Colombo bourse concluded the third trading day of the week entering in to

positive territory again. Both indices recorded noteworthy gains and aggressive participations from foreign investors were highly witnessed mainly on recorded block trades today. Subscriptions on retail, high networth and corporate segments also noticeable to record a healthy turnover.

ASPI gained 30.33 points to close at 5,810.42 points (0.52%) whilst, S&P SL20 Price Index ended at 3,243.70 points (0.82%) accumulating 26.31 points. The market capitalization as at the day’s closure was LKR 2.23Tn recording a year to date gain of 2.98%. The turnover for the day recorded LKR 1.53Bn, which is a 31.01% increase compared to the previous trading day.

Bank Finance & Insurance (LKR 838Mn) and Diversified Holdings (LKR 412Mn) stood out as the best performers under the sectorial review. Shares totaling up to 21.6Mn changed hands during the day; this was an increase of 10.79% compared to the previous trading day.

The foreigners appeared to be bullish for the trading day resulting net foreign inflow of LKR 160.2Mn reducing the year to date net foreign outflow to LKR 779.8Mn. USD closed the day at a quoted price of LKR 127.94/-.

Close +/- % +/-CSEALL Index 5810.42 30.33 0.52P/E (x) 12.35P/Bv (x) 1.78

2.51

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

4700

4900

5100

5300

5500

5700

5900

6100

2/7 5/7 8/7 11/7 2/7

Source: Bloomberg

Australia

In Australia, the market on Thursday closed higher, boosted by some positive company earnings reports and better-than-expected unemployment figures. The benchmark S&P/ASX200 index climbed 14.7 points or 0.3 per cent to 4,935.7.

Today, the Australian share market looks set to open mixed following the lead of international markets overnight after comments from European Central Bank (ECB) president Mario Draghi. In comments at a press conference after the ECB's regular interest-rate decision, Mr Draghi explicitly mentioned the risks posed by the recent rise in the euro. The currency's rise could limit inflation and slow economic growth there. That caused traders to bet that the bank may hold off on deploying further easy-money policies. The SFE Futures 200 is pointing upwards 16 points or 0.32 to 4,910.

In local economic news on Friday, the Reserve Bank of Australia (RBA) is due to release its quarterly Statement on Monetary Policy.

In equities news, Newcrest Mining is expected to post first-half results.

Close +/- % +/-S&P/ASX 200 INDEX 4920.95 38.23 0.78P/E (x) 18.88P/Bv (x) 1.95

5.73

STANDARD & POORS/ ASX 200 INDEX

Dividend Yield

3800

4000

4200

4400

4600

4800

5000

2/7 5/7 8/7 11/7 2/7

Source: Bloomberg

Hong Kong

Local stocks slumped. The HSI and HSCEI dropped 79 points and 167 points to 23177 and 11681 respectively. Market volume was 79.044 billion.

We believe the market is going to consolidate, as some of the technical indicators is showing the HSI is overbuying, investors are suggested to stand on sideline and wait for a clear trading signal.

Technically, the HSI is expected to gain a support from 23300 level, major resistance will be 23800 level.

Close +/- % +/-HSI INDEX 23177.00 -79.93 -0.34P/E (x) 11.86P/Bv (x) 1.55

3.05Dividend Yield

HANG SENG INDEX

17000

18000

19000

20000

21000

22000

23000

24000

25000

2/7 5/7 8/7 11/7 2/7

Source: Bloomberg

Regional Market Focus

8 February 2013

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Market News

US Apple Inc.’s board and management are actively discussing the return of more cash to shareholders and considering a proposal that it

issue preferred stock. Apple shares jumped 3 percent after the world’s most valuable technology company responded to a call by Greenlight Capital Inc.’s David Einhorn for the maker of iPhones to return more of its $137.1 billion in cash. He had also urged shareholders to vote against a proposal by the company to eliminate preferred stock without investors’ approval. Today’s statement suggests Apple is softening its stance on the preferred shares after saying previously in its annual proxy that it has no plans to issue them. Apple also said it’s already committed to returning $45 billion over three years. (Source: Bloomberg)

American consumers are starting to regain confidence as an improving job market eases the strain caused by a higher payroll tax. The Bloomberg Consumer Comfort Index climbed to minus 36.3 in the week ended Feb. 3, marking the first gain since the two percentage-point increase in the levy that funds Social Security took effect at the start of the year. Another report showed fewer workers filed claims for jobless benefits last week. Chains including Macy’s Inc., Gap Inc. and Target Corp. today reported January sales that topped analysts’ estimates, indicating gains in hiring, stock prices and home values are helping make up for the reduction in take-home pay. At the same time, climbing gasoline costs and looming cuts in government spending may prevent the world’s largest economy from making a s tronger comeback following a fourth-quarter slump. (Source: Bloomberg)

On the same day in June 2007 that Standard & Poor’s decided large-scale downgrades of mortgage-backed securities might be necessary as the subprime market fell apart, S&P analysts awarded $2.8 billion of a collateralized debt obligation called Ridgeway Court Funding II Ltd. a AAA grade, the best they could possibly bestow. The CDO, which was underwritten by New York-based Citigroup Inc. and composed of subprime mortgage-backed securities and other similar bundles of debt, defaulted 201 days later, leaving investors with almost nothing. That’s just one of dozens of transactions valued at tens of billions of dollars in 2007 in which S&P deliberately misled investors about the risks of mortgage bonds in order to win business from Wall Street banks, the Justice Department said in a lawsuit filed against the company and parent McGraw-Hill Cos. The U.S. is seeking penalties that may exceed $5 billion, based on losses suffered by federally insured banks. “We dropped the ball on this one,” an S&P analyst wrote in a July 11, 2007, e-mail to an investment-banker client about the structured finance group. “But you think it’s bad now, wait’till next week.” (Source: Bloomberg)

Singapore After four days of intense debate, multiple speeches by ministers and backbenchers and a frank airing of diverse views, a surprising

consensus has emerged on several key points surrounding the direction that Ship Singapore is headed in. Both the ruling People's Action Party (PAP) and the opposition camp concur that there must not be an over-reliance on foreign workers, and that good jobs must be created for Singaporeans. They also agree that, above all, it can no longer be "business as usual" when it comes to the future of the economy. But it was the very different approach to achieving these goals that sparked much discussion yesterday as MPs continued to debate the Population White Paper. In the words of one PAP minister, the main difference was the Workers' Party's (WP) "extreme and risky" proposal to cap the growth of foreign manpower until 2020, a move that could send the economy into a tailspin. (Source: Business Times)

Stop kicking the can down the road. That was the message from Workers' Party (WP) chief Low Thia Khiang, as he joined in the debate on the Population White Paper yesterday. The MP for Aljunied GRC used the phrase several times in his speech, calling for the government to stop seeing immigration as the solution to Singapore's problems. "By focusing on immigration, the government is using the cause of the problems today as a solution for tomorrow," he said. It is his party's responsibility as co-drivers to tell the driver that he is reading the road map "upside down". (Source: Business Times)

As the manufacturing sector modernises into a technology-based, high-value-added engine of the economy, Singapore's industrial real estate too must evolve. Specifically, urban planners must re-examine land- use zonings, usage definitions, planning parameters, plot ratio norms and regulations, says Colliers International in its White Paper titled: "Come 2030, will there be suitable space for small and medium businesses?" The present tensions, evidenced in companies not knowing if their activities fall within the definition of "Business 1" - B1 zoning is usually intended for light and clean industrial uses that do not impose a "nuisance buffer" of more than 50 metres - is due to the outmoded definition of manufacturing. Given that small and medium-sized enterprises (SMEs) are often sub-contractors to multinational corporations, specialising in one or two aspects of an MNC's overall production process, it is erroneous to consider SME operations as a standalone process that does not amount to the production of a good, argued the report's authors. (Source: Business Times)

Hong Kong

From free hand pouches at Coach Inc. to discounts on flat-screen televisions at Gome Electrical Appliances Holding Ltd., retailers are

dangling promotions to lure Chinese shoppers during next week’s Lunar New Year holiday. The offers combined with an improving economic outlook in the world’s second-largest economy are set to give retail sales a boost during the biggest buying season of the year. China’s retail sales for January and February may rise 15.4 percent, the fastest pace in 13 months, according to nine economists surveyed by Bloomberg. (Source: Bloomberg)

Chinese B shares, created in 1992 for foreign investors, have soared to a two-year high in Shenzhen on speculation that more companies

will seek to list in Hong Kong, where companies are awarded higher valuations. Their Shanghai- traded peers, which have lagged behind, may join the bonanza. China International Marine Containers Group Co., the world’s biggest container maker, and China Vanke Co., the

nation’s largest publicly traded property developer, announced plans to move their stock listings from Shenzhen to Hong Kong, where the

Regional Market Focus

8 February 2013

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Hang Seng China Enterprises Index trades at 8.8 times estimated profit. (Source: Bloomberg)

China’s auto association said the car industry has become a “scapegoat” for the toxic smog that engulfed Beijing in the past month and that coal-fired power plants should bear the main responsibility for the pollution. “The auto industry has already borne too much

undeserved responsibility in recent years with the purchase and usage restrictions,” said Ye Shengji, deputy secretary genera l of the China Association of Automobile Manufacturers. “With the toxic smog, the auto industry is once again being blamed and scapegoated as the main culprit, which is unreasonable.” (Source: Bloomberg)

Thailand Foreign investors continued to be net sellers of Thai shares to the tune of Bt3,043.21mn on Thu. (Source: Bisnews)

The Bank of Thailand expects strong momentum in consumer loan growth will continue this year on the back of auto hire purchase loans,

which look set to keep growing at a robust pace driven by the government’s first-car tax rebate scheme. (Source: Bisnews)

Thailand’s consumer confidence index (CCI) in all categories rose for a fourth straight month in Jan 2013 with the confidence index for the overall economy up from 70.6 to 72.1, the highest in 16 months. (Source: Daily News)

The Energy Ministry said it will seek approval from the National Energy Policy Council today to delay LPG price float for the household sector to reflect production costs from Bt18.13/kg to Bt24.82/kg to Apr 2013, pending a study on direct subsidy scheme for low-income people and food vendors. (Source: Daily News)

Indonesia Uncertainties caused by changes in government policies and regulations can lower foreign investors’ interest in investing in Indonesia,

according to Fitch Ratings. The government is also asked to reform several matters that may hamper future economic growth. Managing Director of Fitch Ratings Andrew Steel said the disbanding of the Upstream Oil and Gas Executive Agency (BPMIGAS) by the Constitutional Court on November, 2012, surfaced doubts from foreign investors on their investment continuity in Indonesia. He said that there are several conflicting policies that are issued from different authorities which confuse investors. The restricting of foreign ownership is also another problem. The government’s quick action in the establishment of the Interim Working Unit for Upstream Oil and Gas Business Activities (SKKMIGAS) as the replacement for BPMIGAS slightly eased investors’ concerns. He also said that investors are monitoring the renegotiating of several mining concession contracts in the mining sector. Indonesia’s energy and oil sector requires large investment. (Source: Indonesia Finance Today)

The government sees the economic slowdown in the fourth quarter of 2012 needs to be anticipated because it is an anomaly. Therefore, the government is trying to increase consumption and investment in order to achieve the growth target of 6.5 percent. Vice Minister of Finance, said the government should take notice of the fourth quarter of 2012’s slowdown because growth during that period is usually higher than the previous quarter. The government is also reviewing whether this slowdown will continue into the first quarter of 2013. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka Planters Association representing large tea growing companies welcome a reduction in a sudden hike in a tea export tax,

which was sprung on the industry with no warning or consultation. The tax will not be applied at a rate of 2.5 percent of the net sale average for 'bulk tea' calculated every quarter. (Source: lbo.lk)

Australia Workers in Australia's oil and gas sector are the highest paid in the world and earn 25 per cent more than US counterparts, according to

a new survey that lays bare the pressures facing companies like Chevron as they invest billions of dollars to meet Asia's booming energy demand. Australian workers pocket an average of $US163,600 ($159,259) a year to work on projects that range from platforms drilling for natural gas in deep water off the northern coast to onshore rigs seeking to unlock deposits of unconventional gas in the sweltering heat of the Australian Outback, the survey by recruitment firm Hays found. (Source: The Australian)

Wayne Swan has reneged on his parliamentary pledge to provide monthly forecasts of mining tax revenues, citing Australian Taxation Office restrictions on "taxpayer confidentiality" for previous payments. The Treasurer - facing a united push from the Coalition and the Greens in the Senate for the tax office to provide details of the budget's projected $2 billion payments this financial year for the minerals resource rent tax - has fobbed off demands to release details of revenue forecasts. (Source: The Australian)

The end to interest rate cuts in Australia is rapidly approaching, with the Reserve Bank of Australia, or RBA, saying that significant cuts in the last year are starting to spur the economy. "The cumulative reduction in interest rates is affecting interest-sensitive parts of the economy, though the full effects will, of course, take more time to become apparent," the RBA said in its quarterly policy statement, which included minor downward revisions to its growth and inflation forecasts. (Source: The Australian)

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80.25 +0.66% 300.95 -0.65%

116.44 -0.20% 1.957 -0.00%

1,671.65 +0.05% 13,944.05 -0.30%

550.90 -0.36% MSCI SEA 886.87 -0.07%

2,597.92 -0.74% 53.3

Source: Bloomberg

MSCI Asia x-Japan

JPM Global Composite PMI SA

ThomReuters/JefferiesCRB

DJI

Crude oil, Brent (US$/bbl) US Treasury 10yr Yield

Euro Stoxx 50

Dollar Index

Gold (US$/Oz)

1.20

1.40

1.60

1.80

2.00

2.20

2.40

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

700

750

800

850

900

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

11,000

12,000

13,000

14,000

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

2,0002,1002,2002,3002,4002,5002,6002,7002,800

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

48

49

50

51

52

53

54

55

56

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

1,500

1,600

1,700

1,800

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

78

80

82

84

Feb

-12

Ma

r-12

Apr-1

2

Ma

y-12

Jun-1

2

Jul-1

2

Aug-1

2

Sep-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan-1

3

260

280

300

320

340

Feb

-12

Ma

r-12

Apr-1

2

Ma

y-12

Jun-1

2

Jul-1

2

Aug-1

2

Sep-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan-1

3

90

100

110

120

130

Feb-1

2

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug

-12

Sep

-12

Oct-1

2

Nov-1

2

Dec-1

2

Jan-1

3

440

460

480

500

520

540

560

580

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

Regional Market Focus

8 February 2013

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Valuations of Major Regional Markets

14.7 1.48

13.9 2.52

11.3 1.55

14.4 2.94

14.9 1.96

Source: Bloomberg

Hang Seng Index, P/B (X)

S&P/ASX 200 Index, Forward P/E (X) S&P/ASX 200 Index, P/B (X)

Jakarta Stock Exchange Composite Index, P/B (X)

Straits Times Index, Forward P/E (X)

Hang Seng Index, Forward P/E (X)

Straits Times Index, P/B (X)

Stock Exchange of Thailand, Forward P/E (X) Stock Exchange of Thailand, P/B (X)

Jakarta Stock Exchange Composite Index,

10

12

14

16

18

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

1.0

1.2

1.4

1.6

1.8

2.0

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

1.0

1.5

2.0

2.5

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

8

10

12

14

16

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

1.01.21.41.61.82.02.2

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

8

10

12

14

16

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

2.22.42.62.83.03.23.43.6

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

10

12

14

16

18

20

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

1.4

1.6

1.8

2.0

2.2

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

8

10

12

14

16

18

Dec-0

9

Fe

b-1

0

Ap

r-10

Ju

n-1

0

Au

g-1

0

Oct-1

0

Dec-1

0

Fe

b-1

1

Ap

r-11

Ju

n-1

1

Au

g-1

1

Oct-1

1

Dec-1

1

Fe

b-1

2

Ap

r-12

Ju

n-1

2

Au

g-1

2

Oct-1

2

Dec-1

2

Regional Market Focus

8 February 2013

10 of 16

Source: Bloomberg

World Index

JCI 0.09% 4,503.15

HSI -0.34% 23,177.00

KLCI 0.34% 1,619.57

NIKKEI -0.93% 11,357.07

KOSPI -0.23% 1,931.77

SET -0.04% 1,499.81

SHCOMP -0.66% 2,418.53

SENSEX -0.30% 19,580.32

ASX 0.30% 4,935.70

FTSE 100 -1.06% 6,228.42

DOW -0.30% 13,944.05

S&P 500 -0.18% 1,509.39

NASDAQ -0.11% 3,165.13 COLOMBO 0.52% 5,810.42

STI -0.45% 3,261.77

Regional Market Focus

8 February 2013

11 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior

2/8/2013 Consumer Credit Dec $14.000B $16.045B 10-22 FEB GDP (annualized) (QoQ) 4Q F -- 1.80%

2/8/2013 Trade Balance Dec -$46.0B -$48.7B 10-22 FEB GDP (YoY) 4Q F -- 1.10%

2/8/2013 Wholesale Inventories Dec 0.40% 0.60% 2/15/2013 Retail Sales Ex Auto (YoY) Dec -- 2.00%

11-16 FEB Mortgage Delinquencies 4Q -- 7.40% 2/15/2013 Retail Sales (YoY) Dec -- -1.10%

11-16 FEB MBA Mortgage Foreclosures 4Q -- 4.07% 2/15/2013 Retail Sales (MoM) sa Dec -- -0.80%

2/12/2013 NFIB Small Business Optimism Jan -- 88 2/18/2013 Electronic Exports (YoY) Jan -- -19.10%

2/12/2013 JOLTs Job Openings Dec -- 3676 2/18/2013 Non-oil Domestic Exports (YoY) Jan -- -16.30%

2/13/2013 Monthly Budget Statement Jan -$10.00B -- 2/18/2013 Non-oil Domestic Exp SA (MoM) Jan -- 1.80%

2/13/2013 MBA Mortgage Applications 8-Feb -- 3.40% 2/20/2013 Automobile COE Open Bid Cat A 13-Feb -- 87109

2/13/2013 Import Price Index (MoM) Jan 0.70% -0.10% 2/20/2013 Automobile COE Open Bid Cat B 13-Feb -- 92901

2/13/2013 Import Price Index (YoY) Jan -- -1.50% 2/20/2013 Automobile COE Open Bid Cat E 13-Feb -- 94890

2/13/2013 Advance Retail Sales Jan 0.10% 0.50% 2/25/2013 CPI (MOM) - NSA Jan -- 0.70%

2/13/2013 Retail Sales Less Autos Jan 0.20% 0.30% 2/25/2013 CPI (YoY) Jan -- 4.30%

2/13/2013 Retail Sales Ex Auto & Gas Jan -- 0.60% 2/26/2013 Industrial Production MoM SA Jan -- 5.40%

2/13/2013 Retail Sales "Control Group" Jan 0.20% 0.60% 2/26/2013 Industrial Production YoY Jan -- -0.60%

Date Statistic For Survey Prior Date Statistic For Survey Prior

2/8/2013 Foreign Reserves 1-Feb -- $181.6B 2/19/2013 Composite Interest Rate Jan -- 0.32%

2/8/2013 Forw ard Contracts 1-Feb -- $23.4B 2/21/2013 Unemployment Rate SA Jan -- 3.30%

2/15/2013 Foreign Reserves 8-Feb -- -- 2/22/2013 CPI - Composite Index (YoY) Jan -- 3.70%

2/15/2013 Forw ard Contracts 8-Feb -- -- 2/25/2013 Exports YoY% Jan -- 14.40%

2/18/2013 Gross Domestic Product SA (QoQ) 4Q -- 1.20% 2/25/2013 Imports YoY% Jan -- 11.90%

2/18/2013 Gross Domestic Product (YoY) 4Q -- 3.00% 2/25/2013 Trade Balance Jan -- -48.0B

2/18/2013 Annual GDP (YoY) 2012 -- 0.10% 2/27/2013 Annual GDP 2012 -- --

18-20 FEB Total Car Sales Jan -- 144676 2/27/2013 GDP sa (QoQ) 4Q -- 0.60%

2/20/2013 Benchmark Interest Rate 20-Feb -- 2.75% 2/27/2013 GDP (YoY) 4Q -- 1.30%

2/22/2013 Foreign Reserves 15-Feb -- -- 2/28/2013 Govt Mthly Budget Surp/Def HK$ Jan -- 51.7B

2/22/2013 Forw ard Contracts 15-Feb -- -- 2/28/2013 Money Supply M1 - in HK$ (YoY) Jan -- 15.90%

24-27 FEB Customs Exports (YoY) Jan -- 13.45% 2/28/2013 Money Supply M2 - in HK$ (YoY) Jan -- 12.10%

24-27 FEB Customs Imports (YoY) Jan -- 4.67% 2/28/2013 Money Supply M3 - in HK$ (YoY) Jan -- 12.10%

24-27 FEB Customs Trade Balance Jan -- -$2365M 3/4/2013 Retail Sales - Value (YoY) Jan -- 8.80%

2/27/2013Bloomberg Feb. Thailand Economic

Survey3/4/2013 Retail Sales - Volume (YoY) Jan -- 8.10%

US Singapore

Economic Announcement

Thailand Hong Kong

Source: Bloomberg

Source: BloombergSource: Bloomberg

Source: Bloomberg

Regional Market Focus

8 February 2013

12 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior

06-11 FEB Consumer Confidence Index Jan -- 116.4 05-20 FEB Exports YoY% Dec -- -6.60%

11-20 FEB Total Local Auto Sales Jan -- -- 05-20 FEB Imports YoY% Dec -- -8.40%

11-20 FEB Total Motorcycle Sales Jan -- -- 2/15/2013 Repurchase Rate 15-Feb -- 7.50%

2/12/2013 Bank Indonesia Reference Rate 12-Feb 5.75% 5.75% 2/15/2013 Reverse Repo Rate 15-Feb -- 9.50%

2/13/2013 Current Account Balance 4Q -- -5336M 2/28/2013 CPI Moving Average (YoY) Feb -- --

2/27/2013Bloomberg Feb. Indonesia

Economic Survey2/28/2013 CPI (YoY) Feb -- --

3/1/2013Indonesia February Markit

Manufacturing PMI05-20 MAR Exports YoY% Jan -- --

3/1/2013 Inflation NSA (MoM) Feb -- 1.03% 05-20 MAR Imports YoY% Jan -- --

3/1/2013 Inflation (YoY) Feb -- 4.57% 3/15/2013 Repurchase Rate 15-Mar -- --

3/1/2013 Exports (YoY) Jan -- -9.80% 3/15/2013 Reverse Repo Rate 15-Mar -- --

3/1/2013 Total Imports (YoY) Jan -- -5.60% 15-28 MAR GDP (YoY) 4Q -- 4.80%

3/1/2013 Core Inflation (YoY) Feb -- 4.32% 3/28/2013 CPI Moving Average (YoY) Mar -- --

3/1/2013 Total Trade Balance Jan -- -$155M 3/28/2013 CPI (YoY) Mar -- --

01-05 MAR Danareksa Consumer Confidence Feb -- 94.9 05-19 APR Exports YoY% Feb -- --

01-11 MAR Consumer Confidence Index Feb -- -- 05-19 APR Imports YoY% Feb -- --

Date Statistic For Survey Prior

2/8/2013 RBA Statement on Monetary Policy

2/11/2013 Home Loans MoM Dec -- -0.50%

2/11/2013 Investment Lending Dec -- -3.30%

2/11/2013Ow ner-Occupied Home Loan

Value MoMDec -- 0.60%

2/12/2013 RBA Credit Card Balances Dec -- $A49.5B

2/12/2013 RBA Credit Card Purchases Dec -- $A21.8B

2/12/2013 NAB Business Conditions Jan -- -4

2/12/2013 NAB Business Confidence Jan -- 3

2/13/2013Bloomberg Feb. Australia

Economic Survey

2/13/2013Westpac Consumer Confidence

s.a. (MoM)Feb -- 0.60%

2/13/2013Westpac Consumer Confidence

IndexFeb -- 100.6

2/14/2013 Consumer Inflation Expectation Feb -- 2.00%

2/18/2013 New Motor Vehicle Sales MoM Jan -- 2.20%

2/18/2013 New Motor Vehicle Sales YoY Jan -- 17.90%

2/19/2013RBA Policy Meeting - February

Minutes

Source: Bloomberg

Source: Bloomberg

Indonesia

Australia

Sri Lanka

Source: Bloomberg

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BUY >15% upside from the current price

HOLD Trade within ± 15% from the current price

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Phillip Capital – Regional Member Companies

SINGAPORE

Phillip Securities Pte Ltd

Raffles City Tower 250, North Bridge Road #06-00

Singapore 179101 Tel : (65) 6533 6001 Fax : (65) 6535 6631

Website : www.poems.com.sg

MALAYSIA

Phillip Capital Management Sdn Bhd

B-2-6 Megan Avenue II 12 Jln Yap Kwan Seng 50450 Kuala Lumpur Tel : (603) 2166 8099 Fax : (603) 2166 5099

Website : www.poems.com.my

HONG KONG

Phillip Securities (HK) Ltd

11-12/F United Centre 95 Queensway, Hong Kong

Tel : (852) 2277 6600 Fax : (852) 2868 5307

Website : www.poems.com.hk

THAILAND

Phillip Securities (Thailand) Public Co Ltd

15/F, Vorawat Building 849 Silom Road

Bangkok Thailand 10500 Tel : (622) 635 7100 Fax : (622) 635 1616

Website : www.poems.in.th

JAPAN

The Naruse Securities Co Ltd

4-2, Nihonbashi Kabutocho Chuo Ku, Tokyo Japan 103-0026

Tel : (81) 03-3666-2101 Fax : (81) 03-3664-0141

Website : www.naruse-sec.co.jp

UNITED KINGDOM King & Shaxson Ltd

6th Floor, Candlewick House

120 Cannon Street London EC4N 6AS

Tel : (44) 207 426 5950 Fax : (44) 207 626 1757

Website : www.kingandshaxson.com