MICA (P) 081/12/2011 Ref No: RM2012_0213 1 of 17

Regional Market Focus

Phillip Securities Research Pte Ltd

2 November 2012

Morning Market Commentary - STI: -0.39% to 3026.6 - MSCI SE Asia: -0.26% to 842.6 - Hang Seng: +0.83% to 21821.9 - MSCI APxJ: -0.11% to 442.7 - Euro Stoxx 50: +1.21% to 2533.9 - S&P500: +1.09% to 1427.6 MARKET OUTLOOK: By Ng Weiwen, Macro Analyst Global growth (particularly in China) is showing signs of bottoming out and we should see a modest pickup in 4q12, barring downside risks on the G2 fiscal front. Our view takes into account the following: (i) Globally, manufacturing PMIs have registered improvements in new orders and the decline in inventories suggest that the inventory adjustment cycle is about to end. This suggest possible gains in manufacturing output in the coming months, barring a sharp deterioration in final demand. (ii) The US Treasuries yield curve has steepened, suggesting that US has emerged from the doldrums and recovery is gaining traction. The yield on 3-mth shed around 2bps, while yields on 10-yr and 30-yr gained around 3bps and 4bps respectively. Furthermore, US manufacturing output continued to expand on the back of increased spending by US consumers who are more confident about the economy as the value of their properties continue to rise. (iii) In China, both the official NBS PMI as well as the HSBC PMI (which focuses more on export-oriented SMEs) continued to register improvements. Specifically, the official NBS PMI suggests that manufacturing activity in Oct has expanded and sub-components of the PMI hints of stabilisation in the Chinese economy. Seen along with the m-m uptick in Sept retail sales as well as FAI data, we are reassured that growth is bottoming out on China's macro front. Consequently, markets soared overnight with S&P 500 forming a bullish 'marubozu' and NASDAQ-100 bouncing up to perch just above the key 200dma support level. Tonight's release of US nonfarm payrolls data (around 8.30pm SGP time) – the final jobs report prior to the Nov 6 presidential election- will the key risk event for US trading session today. Portfolio Watch: (1) We reiterate our main investment theme, which is long Asia/EM Debt (Asia Bond ETFs: N6M:SGX, N6L:SGX, O9P:SGX | EM Bond ETFs: EMB:AMEX, LEMB:AMEX, EMHY:AMEX) – global risk on or risk off, portfolios will have to explore beyond traditional safe havens- which yield too low to protect purchasing power, and have doubtful credit ratings. Asia/EM nations on the other hand mostly have nominal GDPs compounding faster than debt and higher yields to boot, are likely to increasingly feature as core-fixed income holdings. (2) Long China – H-shares 2828.HK, A-shares 83188.HK (prefer A-shares). Positive on China A-shares (FTSE China A50 Index CFD) and the HKCEI (H Shares Index CFD). There are increasingly more signs of bottoming out in the Chinese economy, with the m-m uptick in Sept FAI, retail sales as well as yesterday's improvement in the NBS &HSBC PMI. Market has previously overpriced the macro downside and with China underperforming for a long while, it stands a good chance of outperforming in the near term as investors switch focus from the US and ASEAN. (3) Accumulate on weakness CIMB ASEAN40 ETF (QS0:SGX or M62:SGX). While we are neutral on equities -as an asset class-given the lacklustre macro fundamentals, we continue to prefer and Overweight the ASEAN region on account of its resilient domestic demand and massive infrastructure expenditure which will mitigate sluggish external demand. Within the ASEAN space we prefer Singapore (ES3:SGX), Thailand (LG7:SGX) and Philippines (N2E:SGX). REPORTS: - Singapore Sector Reports: Banks, 1 Nov / Transport, 10 Sept / Telcos, 16 May / Property, 28 Aug / REITS, 5 Sept - Country Strategy: US, 24 Oct/ China, 22 Oct / HK, 8 Oct / Thai, 5 Oct / Indon, 27 Sept / S'pore, 3 Sept / Malaysia, 31 Aug - Global Macro, Asset Strategy: 9 Oct/ Update, 25 Oct

Regional Market Focus

2 November 2012

2 of 17

Macro Data

In US, manufacturing activity continued to expand. Specifically, the US ISM manufacturing index registered a reading of 51.7pts in Oct, gaining 0.2pts m-m. In particular, the new orders index rose 1.9 pts m-m to 54.2. The Conference Board consumer confidence index surged 3.8pts m-m to 72.2pts in Oct- the strongest reading since the recovery. On the labour front, initial jobless claims declined 9,000 wk-on-wk to 363,000 for the week ending Oct 27. We should see some distortion in the jobless claims data for the coming weeks owing to disruptions caused by Hurricane Sandy. In Indonesia, exports continued to slump 9.4% y-y in Sept but slower than the steep pace of contraction of 24% in the preceding month. Manufacturing activity -based on HSBC PMI- also continued to expand to a 19 month-high (Oct: 51.9, +1.4pts m-m), with forward-looking new orders rising too. Inflation inched up to 4.61% y-y, from 4.31% in the preceding month. With inflation print ytd well within the central bank’s year-end target range of 3.5 to 5.5%, we expect Bank Indonesia to continue to stand pat on the back of lower inflation expectations as well as resilient domestic demand. As we have guided previously, a rate cut is unlikely as such a dovish stance would further exacerbate the weakness in rupiah (IDR) in view of Indonesia’s deteriorating external balances. In Thailand, inflation remained almost unchanged at 3.32% in Oct, compared to 3.38% in the preceding month. Core inflation- which excludes energy and fresh food prices- dipped to 1.83%, from 1.89% in Sept, within the central bank’s target range of 0.5%-3%. Looking ahead, in view of the benign inflation as well as pre-emptive Oct rate cut, we expect BoT to stand pat unless economic activity substantially slows down. In UK, house price rose by 0.6% m-m sa in Oct, after a 0.4% m-m sa drop in Sep. The reading fell by 0.9% y-y, compared to a 1.4% y-y decline in Sep. A separate report shows that the nation’s manufacturing PMI fell to 47.5 in Oct from 48.1 in Sep, indicating a faster contraction in manufacturing activities. Bank of England policy makers will decide next week whether to extend quantitative easing beyond their 375 billion-pound ($606 billion) target after they complete their current round of asset purchases. In China, official PMI returned to above 50 the dividing line between expansion and contraction, reporting 50.2 in Oct, after the 49.8 reading in Sep, adding signs the nation’s manufacturing is bottoming out. The improvement is aligned with HSBC PMI, which improved to 49.5 in Oct from 47.9 in Sep, indicating only a slight contraction. In Taiwan, HSBC manufacturing PMI rose to 47.8 in Oct from 45.6 in Sep, indicating a slower contraction in manufacturing activities. In Hong Kong, retail sales value rose by 9.4% y-y in Sep, faster than the 4.6% y-y gain in August. Retail sales volume rose by 8.5% y-y, faster than 3.2% y-y gain in August. With China showing signs of bottoming out, Hong Kong economy would likely be stabilizing. In Australia, performance for manufacturing index rose slightly to 45.2 in Oct from 44.1 in Sep, indicating a slightly slower contraction. Sub reading for production fell to 45.2 from 45.5. Sub reading for new orders fell to 43.9 from 44.3. Both indicate worsening activities. Sub reading for employment rose to 46.7 from 40.7. A separate report shows that import price index fell by 2.4% q-q in 3q12, after a 2.4% q-q gain in 2q12. Export price index fell by a significant 6.4% q-q in 3q12, after a 0.9% q-q gain in 2q12, due to weak commodity prices. In South Korea, inflation reported 2.1% in Oct, compared to 2.0% in Sep. On m-m basis, CPI fell by 0.1% m-m in Oct, after a 0.7% m-m gain in Sep. The Bank of Korea lowered its forecast for 2012 inflation to 2.3 percent on 0ct. 11, highlighting the room policy makers have to ease further should economic conditions worsen. A separate report shows that the nation’s total export rose by 1.2% y-y in Oct, after a 2.0% y-y drop in Sep. Import rose by 1.5% y-y in Oct, compared to a 6.1% y-y drop in Sep.

Source: Phillip Securities Research Pte Ltd

Regional Market Focus

2 November 2012

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Singapore The Singapore Market was little changed with the STI closing at 3,026.6 (-

0.39%). The 1.4bn shares traded were worth S$1.1bn. For the stocks under our coverage, there had been an even spread between

outperformers and underperformers in this results season (Positive: 46%, Negative: 54%). As highlighted earlier, we are generally more bearish than consensus on profits and we have been right thus far, as results continue to underwhelm market estimates (Positive: 30%, Negative: 70%).

The market looks a little toppish in the near term and the lack of positive news flow could cap upside. We would advise our clients to stay nimble for now and expect earnings reports from the upcoming results season to drive stock prices. Close +/- % +/-

FSSTI 3026.61 -11.76 -0.39P/E (x) 12.15P/Bv (x) 1.39

3.06Dividend Yield

STRAITS TIMES INDEX

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Source: Bloomberg

Thailand Thai stocks traded in a tight range, seesawing between positive and negative

territory throughout the session on Thu. Telecoms shares succumbed to selling pressure and led the market’s decline in the face of uncertainty over 3G license issuance but buying in bank and building materials counters helped limit the market’s downside.

Overall risk sentiment improves today amid positive mood in regional bourses, which received a boost from better-than-expected US economic data yesterday. US consumer confidence jumped in Oct to its highest in more than four years and data from payrolls processor ADP showed US companies added 158,000 workers in Oct, the fastest pace in eight months. The above numbers raised optimism about US non-farm payrolls and unemployment reports due out tonight. Yesterday foreign investors also turned net buyers of Thai equities for the first day in eight sessions to the tune of more than Bt1.5bn. Overall we think there is potential for the SET index to climb back above a key psychological level of 1300 but volatility is likely to remain high along the way. Heading into the final stretch of the US presidential election which will be held on Nov 6, we expect the SET index to trade in a range of 1290-1308 today.

For short-term strategy, we advise investors to look for earnings plays. Resistance on the main index is pegged at 1300-1308 and support at 1290-1283

today.

Close +/- % +/-SET INDEX 1297.99 -0.88 -0.07P/E (x) 17.39P/Bv (x) 2.26

3.44Dividend Yield

STOCK EXCH OF THAI INDEX

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Source: Bloomberg

Indonesia

Most Indonesian stocks declined Thursday (01/11), despite higher closes on regional Asia markets after China’s data indicated improvement in its manufacturing sector. The Jakarta Composite Index shed 14.929 points, or 0.34%, to close at 4,335.362. The decline included six of the 9 major industry groups, with miscellaneous industry lost 1.43%, property and construction sector declined 0.93%, and infrastructure sector fell 0.59%. Most of the blue-chip stocks also ended lower, as the LQ45 index trimmed 3.433 points, or 0.46%, to 747.688, with 18 of its 45 components closed in negative territory. Indonesia’s central bureau of statistics reported inflation accelerated to a 13-month high in October. Consumer prices climbed 4.61% from a year earlier last month, after rising 4.31% in September. More than 130 shares declined, 90 shares advanced, and 242 shares remained unchanged Thursday on the Indonesia Stock Exchange, where 3.896 billion shares worth IDR 4.533 trillion traded on the regular board. Foreign investors posted net sales worth IDR 842.85 billion.

The Jakarta composite index will likely move higher today, as sharp rally on US markets overnight provides lead to markets in Asia this morning. We expect the JCI to trade with support at 4,288 and resistance at 4,360.

Close +/- % +/-JCI Index 4335.36 -14.93 -0.34P/E (x) 17.81P/Bv (x) 2.90

2.08Dividend Yield

JAKARTA COMPOSITE INDEX

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Source: Bloomberg

Regional Market Focus

2 November 2012

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Sri Lanka As the market unwrapped the third consecutive day of trading all three indices

retained in the extreme red territory purely due to the continuous selling pressure in the market. Which triggered the panic selling by retailers, this too contributed towards the negative closures. The All Share Price Index (ASPI) dropped a marginal 19.10 points to close the day at 5,494.54. The more liquid MPI stood at 5,016.28 loosing 21.49 points. The S&P SL20 Price Index lost 13.90 points to close at 2,974.15. The total market capitalization as at end of trading was LKR 2.10Tn.

The turnover for the day (LKR 138.44Mn.) was a 70.99% decrease compared to the previous day, which was the lowest turnover recorded in 17 weeks. Bank Finance & Insurance and Diversified Holdings were the best performers under the sectorial review who contributed 38.3 Mn & 26.2 Mn respectively. The day recorded 3,363 trades resulting in 11.3 Mn shares changing hands, which was a 34% reduction over the previous day’s volume. The price losers outnumbered the price gainers by 120:67. The foreign investors were net buyers for the day with a net inflow of LKR 13.3Mn, extending the year to date net foreign inflow to LKR 33.96Bn.

Close +/- % +/-CSEALL Index 5494.54 -19.10 -0.35P/E (x) 11.35P/Bv (x) 1.69

2.55

Dividend Yield

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Australia

The Australian stock market lost more than 1 per cent on Thursday, despite an encouraging pick-up in Chinese manufacturing activity, as concerns about the state of the global economy weighed on investor sentiment. The benchmark S&P/ASX200 index fell 59.4 points or 1.3 per cent to 4457.6.

Today the local bourse is expected to open higher following strong gains on Wall Street due to signs of increased economic activity in the United States. The SFE Futures 200 is pointing upwards 39 point or 0.87 per cent to 4,475.

On the local economic news front we have the ABS producer price index for September quarter, HIA Trades report for September

Close +/- % +/-S&P/ASX 200 INDEX 4517.00 31.31 0.70P/E (x) 17.44P/Bv (x) 1.79

STANDARD & POORS/ ASX 200 INDEX

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Source: Bloomberg

Hong Kong

The China’s October PMI was announced yesterday, the data came in 50.2, above the 50 level thresholds. The local market was bolstered by the PMI data. The HSI increased 180 points to 21,821. Trading range was between 21,832 and 21,506. Market volume rebounded to HKD 586.96 billion.

The China’s October PMI bottomed out and above the 50 level thresholds, which eased the market’s wary of “Hard-Landing” of the Chinese Economic. We expected the improvement of PMI would bolster the cyclical industrial sector and the marine transportation sector. Anhui Conch (914.HK) rose 4.9%, CNBM (3323.HK) gained 5.1%, while steel manufacturer Maanshan Iron (323.HK) and Angang Steel (347.HK) advanced 5.5% and 2.4%.

Technically, the HSI is expected to consolidate at around 21,500 level before challenging 22,000 resistance level again with near term support and resistant at the 21,200 and 21,600 respectively.

Close +/- % +/-HSI INDEX 21821.87 180.05 0.83P/E (x) 10.88P/Bv (x) 1.46

3.26Dividend Yield

HANG SENG INDEX

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Source: Bloomberg

Regional Market Focus

2 November 2012

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Singapore SC Global Developments Ltd – Results Recommendation: Neutral Previous close: S$1.115 Fair value: S$1.15

Reported 3Q12 revenue of $237.7mn (+20%y-y), PATMI $34.6mn (+9%y-y)

Shenyang project obtained TOP in the quarter, erased earlier losses

We expect sales in Singapore projects to remain slow which will continue to weigh down its earnings

Maintain Neutral with fair value increased to $1.15 DBS Group – Results Recommendation: Neutral Previous close: S$13.80 Fair value: S$15.10

3Q12 net profit of S$856 million beat expectations on lower loans provision. NIMs and loans growth disappoint, while Fees and Commission improved significantly.

Maintain Neutral with unchanged target price of S$15.10 based on lowered P/B of 1.16X.

Thailand Thoresen Thai Agencies – Company Update Recommendation: ACCUMULATE Previous close: Bt16 Fair value: Bt18.40

TTA announced capital increase at a ratio of 1:1 for a price of Bt14/share. The new shares will be allotted to existing shareholders. XR will be posted on Dec 21, 2012 and exercise period between Dec 15, 2012 and Jan 21, 2013. TTA will seek shareholders’ approval on Dec 14.

If the capital increase goes as planned, the proceeds will be around Bt9,912mn that will be used to acquire used vessels of about 15 units during the downtrend prices in used vessel to accommodate foreseeable industry growth in 2014-2015.

MML appears to see bright prospect in the near future as the company already secured offshore service contract with local investors. Further, its affiliate AOD (33.75% stake) will receive a jack-up rig where the company already inked a service contract. Both contracts have total value of US$727mn.

Given a successful capital increase, our CY13 target price will be revised down to Bt18.40 and we rate an ‘ACCUMULATE’ call on TTA.

Hong Kong

China Eastern Airlines – Performance Decline Substantially Narrow Recommendation: Accumulate Previous close: HKD2.74 Fair value: HKD 3.14

Benefiting from the double-festival effect of the Mid-Autumn Festival and National Holiday this year, passenger transport of China Eastern Airlines (CEA) in September continued the two-digit growth, with RPK up by 11.5% yoy. Further, due to the freight rise of electronic products driven by iphone5 marketing, freight traffic recovered, up by 4%. The Company passenger transport declined by 11.6% mom due to the end of the summer busy season, but iphone5 boosted freight traffic by 9% from August. Demand from domestic routes is the principal drive for flight volume growth.

From operating efficiency, seat kilometer utilization of CEA rose fastest in September, up by 1.25 ppts yoy to 80.37%, exceeding 80.3% of China Southern Airlines, narrowing the gap with 81.8% of Air China. Load factor still maintained a fairly high level of the industry, up by 3 ppts yoy to 67.4%, by far more than 61.6% of Air China and 58% of China Southern Airlines.

The Company Q3 financial report shows Q3 gross operating income reached RMB25.126 billion, up by 2.8% YoY, and operating cost rose by 3.8% to RMB22.66 billion, while net margin reached RMB2.635 billion, down by 20.4% yoy. EPS was RMB0.2336, and performance decline substantially narrowed down from the interim report. The performance slide was mainly attributed to foreign exchange loss. Affected by RMB depreciation, the Q3 net exchange loss of Company reached RMB143 million, compared to gains of RMB685 million a year before. Excluding the non-recurring items, the Company main business gains increased by some 6% yoy.

CEA suffered most from the Sino-Japanese tensions since late September as its Japanese route took the largest share, at 25%, or 4.6% of capacity and 7% of income. The Sino-Japanese route operated by the Company may continue to bear the slack market demand pressure in Q4, which will affect overall performance of the Company international routes.

Recent oil price falls and renminbi exchange rate new highs eased the Company’s fuel cost and exchange loss pressure, which served as a catalyst of recent share price rebound. The strong RMB momentum is expected to continue in a short period, and it is a big-probability event that fuel price will remain low in H2.

In summary, we predict the Company EPS for 2012 and 2013 will be RMB0.35 and RMB0.51 respectively, converted to HK$0.43 and HK$0.63. We cautiously grant it 5x P/E, corresponding to expected EPS for 2013, and 12-month target price is HK$3.14, 14.6% more than the current price HK$2.74, hence “accumulate” rating granted.

Regional Market Focus

2 November 2012

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Market News

US Manufacturing expanded more than forecast, consumer confidence rose to a four-year high and fewer Americans filed claims for

unemployment benefits, pointing to resilience in the U.S. economy heading into the fourth quarter. The Institute for Supply Management’s factory index rose to a five-month high of 51.7 in October from 51.5, the Tempe, Arizona, group reported today. The Conference Board’s sentiment index increased to 72.2, the highest since February 2008. Applications for jobless benefits fell by 9,000 to 363,000 in the week ended Oct. 27, the Labor Department said in Washington. “We’re getting a sense of stabilization, we’re no longer slipping,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. (Source: Bloomberg)

Oil traded near the highest level in almost two weeks after U.S. crude stockpiles unexpectedly declined and reports signaled the nation’s economic growth may be accelerating. Futures were little changed, heading for the first weekly gain in three weeks. Crude inventories slid 2 million barrels last week, the Energy Department said yesterday. Analysts surveyed by Bloomberg News forecast an increase of 1.8 million. The Institute for Supply Management’s factory index climbed to a five-month high and the Conference Board’s consumer sentiment reading advanced to the most since February 2008. (Source: Bloomberg)

Gold is poised to gain before a report that may show U.S. unemployment increased last month, indicating that the world’s largest economy is struggling to pick up. Silver is set for the best week since September. Gold for immediate delivery was little changed at $1,716.35 an ounce at 8:39 a.m. in Singapore. It’s set to advance 0.3 percent this week in the first climb since Oct. 5. Bullion for December delivery was little changed at $1,716.60 an ounce on the Comex, also up 0.3 percent this week. (Source: Bloomberg)

Singapore The rate of job creation may be halved as Singapore moves to grow its economy through a more productive workforce, said labour chief

Lim Swee Say yesterday. In fact, the government wants to see jobs created at the rate of 2 per cent or less per year from 4 per cent yearly over the last decade, said Mr Lim, who is also Minister in the Prime Minister's Office. The cut in job creation is a "new reality" that companies must adapt to. Said Mr Lim: "If we were to continue that rate of growth of 4 per cent a year, come 2020 we can expect to see a workforce of more than four million, and it could be as high as 4.5 million. It's very obvious that that rate of growth is not sustainable, both from the economic angle as well as the social angle." (Source: BT Online)

Manufacturing will remain an important pillar of Singapore's economy even as it evolves, Prime Minister Lee Hsien Loong said yesterday. The sector provides good jobs, integrates well with services and innovation, and broadens the Republic's economic base such that it is not overly dependent on any single sector. Mr Lee made these points at an event to mark the anniversaries of two of GlaxoSmithKline's (GSK) pharmaceutical plants here. The UK pharmaceutical giant celebrated the 30th year of its Jurong site and the 40th year of its Quality Road plant at a joint commemoration ceremony. In his speech, Mr Lee said it was not possible for Singapore to be present in every industry as some would not fit. (Source: BT Online)

The economic slowdown, pushed along by increased uncertainty, is starting to bite into workers' pay. Some 11 per cent of employers have frozen - or are planning to freeze - pay this year, up from 3 per cent in 2011, according to a poll of 141 companies. The quarterly poll taken by the Singapore Human Resource Institute (SHRI) and Remuneration Data Specialists (RDS), a firm specialising on compensation, shows that one per cent of the employers have or are planning to cut wages. There were none last year. In any case, with inflation tipped to rise 4.5 per cent and total wages up just 1.1 per cent , real pay is in for a drop of around 3.4 per cent, according to the poll. (Source: BT Online)

Thailand Foreign investors turned net buyers of Thai shares worth Bt1,513.76mn on Thu. (Source: Bisnews) Thailand’s consumer price index (CPI) for Oct 2012 was up 3.32% on year and 0.13% on month, according to data from the Ministry of

Commerce. For the first 10 months of 2012, average headline CPI inflation was up 2.99% on year. (Source: Krungthep Turakij)

Hong Kong China, the world’s biggest producer and user of coal, is suspending operations at smaller mines in a bid to improve safety before the

nation’s once-in-a-decade leadership transition this month. Ahead of the 18th Party Congress, which begins Nov. 8 in Beijing and runs for at least a week, the State Administration of Work Safety has sent inspectors to mines to “spot hazards” and accelerate shutdowns over the next month, it said in an Oct. 24 statement on its website. The congress is where China’s next generation of leaders will be formally anointed. (Source: www.bloomberg.com.)

The Hong Kong government’s toughest efforts yet to curb a growing asset bubble in the city’s property market probably won’t be the last as record-low mortgage rates drive demand for the world’s priciest homes. Policy makers last month imposed an extra 15 percent tax on all home purchases by companies and non-permanent residents, adding to steps to boost the supply of housing and tighten lending as an influx of buyers from other parts of China underpin soaring prices. Untouched is the major stimulant fuelling prices: borrowing costs tied to the U.S. because of the Hong Kong dollar peg and growth linked to China. (Source: www. bloomberg.com.)

Macau casino revenue rose 3.2 percent to reach a record last month as promotions over the eight-day Golden Week holiday attracted more Chinese tourists to the world’s biggest gambling hub. Casino revenue in the Chinese city increased to 27.7 billion patacas ($3.5 billion) in October, topping a record 26.85 billion patacas in the same month a year earlier, according to data from Macau’s Gaming Inspection and Coordination Bureau today. (Source: www. bloomberg.com.)

Indonesia The trade balance surplus in August 2012 is expected to continue into September due to reduction in import. September’s trade is

projected to weaken due to the influence of global economy. Export remains weak due to the majority of export commodity prices falling.

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Coal export falls sharply by 30 percent (year-to-date) due to lower production. The decline in prices is the impact of the global economic slowdown and the abundant supply from various countries, such as the United States and Canada. The prices of rubber and crude palm oil (CPO) fall 10 percent and seven percent (year-to-date). According to Anton, the decline in September was offset by the rising export of cocoa which is expected to rise 64 percent due to the additional demand ahead of Christmas and New Year. (Source: Indonesia Finance Today)

The realization of state budget for both the central and local governments as of October 23, 2012 has reached 66.1 percent from IDR 1,548.30 trillion (USD 161.02 billion) budget ceiling. Deputy Minister of Finance, said the budget absorption is higher than the same period in 2011 with IDR 522.985 trillion or 57.6 percent of the ceiling. Domestic revenue reached IDR 974.32 trillion or 71.8 percent of the targeted IDR 1357.38 trillion. Meanwhile, the 2012 State Budget and Expenditure Amendment (APBN-P) the state revenue and grants are targeted to reach IDR 1358.20 trillion. The spending realization of central government reached IDR 654.92 trillion or 61.1 percent of the targeted IDR 1069.53 trillion. The largest realization still comes from personnel spending with IDR 162.56 trillion or 76 percent. Expenditure of goods amounts to IDR 82.66 trillion or 44.3 percent and capital expenditure IDR 69.97 trillion, or 41.5 percent. Ministry of Finance, said that capital expenditures by year-end is estimated to reach 90.93 percent of the target, resulting in economic growth of 6.4 percent. Capital expenditure and investment are projected to sustain economic growth to reach above two percent. (Source: Indonesia Finance Today)

Sri Lanka Headline inflation eased to a five month low in October with the Colombo Consumers’ Price Index (CCPI) increasing 8.9 percent year-on-

year from 9.1 percent in September. On a year-on-year basis, the highest contribution to the overall increase of around 59 percent came from non-food commodities which increased by 5 percent in October 2012. Among the food commodities, rice, vegetables and fish and sea food, which have significant weights in the CCPI basket, recorded price increases on a year to year basis. Under the non-food category, the prices of kerosene oil, petrol, diesel and gas rose by 74 percent, 19 percent, 49 percent and 10 percent respectively. Inflation on an annual average basis increased to 6.8 per cent in October 2012 from 6.5 per cent in September 2012 while core inflation increased both on a year-on-year and annual average basis to 6.8 per cent and 5.4 per cent, respectively, in October 2012 from 6.2 per cent and 5.3 per cent, respectively, in September 2012. Core inflation excludes price sensitive items such as food and fuels and is used to gauge underlying price movements of an economy. (Source: island.lk)

Australia The author of the landmark 1989 report on Australia’s future in Asia has warned that mining companies and the Gillard government have

overestimated China’s future demand for coal and iron ore, leaving shareholders and the budget exposed. Noted economist and Labor government adviser Ross Garnaut told The Australian Financial Review he welcomed the Asian Century white paper released this week because “I think we have to lift our game”. But he said its forecasts “really duck the issue” by having low, medium and high scenarios on commodities “so wide apart that it doesn’t say anything”. New data showed China’s demand for thermal coal had fallen sharply due to Beijing’s rapid switch to low-emissions hydro, wind, nuclear and solar energy. “In China thermal [coal] is in deep shit,” Professor Garnaut said. Demand for coal used in steel- making would also slow and iron ore prices would drop in the long term – a view backed by a top BHP Billiton executive. (Source: Financial Review)

Skyrocketing debt accumulated under Labor could threaten the very existence of an independent Northern Territory government, according to a panel appointed by the new conservative administration to examine public finances. Net debt will balloon from $2.7 billion to $6.2bn over the forward estimates, close to 100 per cent of current total revenue, according to the panel's report released yesterday. (Source: The Australia)

Australia’s biggest resources development, the $43 billion Gorgon LNG project in Western Australia, has quietly struck a deal with the federal government to import 150 semi-skilled foreign workers, in a move that will anger unions and Labor MPs who want Julia Gillard to restrict the use of overseas labour. US energy giant Chevron said its newly inked agreement would allow it to hire foreign workers during construction of the Gorgon plant, assuming it could not source workers locally. (Source: The Australia)

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Dollar Index +0.16% Gold 1,714.25 +0.15%

Crude oil +0.99% US Treasury 10yr Yield 1.724 +0.03%

DJI +1.04% S&P 500 INDEX 1,427.59 +1.09%

SHCOMP +1.72%

Source: Bloomberg

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2

May-1

2

Jul-1

2

Sep

-12

1200

1400

1600

1800

2000

Nov-11

Jan-1

2

Mar-1

2

May-1

2

Jul-1

2

Sep-12

70

80

90

100

110

120

Nov-11

Jan-1

2

Mar-1

2

May-1

2

Jul-1

2

Sep-12

1.4

1.6

1.8

2

2.2

2.4

2.6

Nov-11

Jan-1

2

Mar-1

2

May-1

2

Jul-1

2

Sep-12

2000

2300

2600

Nov-11

Jan-1

2

Mar-1

2

May-1

2

Jul-1

2

Sep-12

1000

1100

1200

1300

1400

1500

Nov-11

Jan-1

2

Mar-1

2

May-1

2

Jul-1

2

Sep-12

Regional Market Focus

2 November 2012

9 of 17

Source: Bloomberg

World Index

JCI -0.34% 4,335.36

HSI 0.83% 21,821.87

KLCI 0.16% 1,675.69

NIKKEI 0.21% 8,946.87

KOSPI -0.71% 1,898.44

SET -0.07% 1,297.99

SHCOMP 1.72% 2,104.43

SENSEX 0.30% 18,561.70

ASX -1.31% 4,457.65

FTSE 100 1.37% 5,861.92

DOW 1.04% 13,232.62

S&P 500 1.09% 1,427.59

NASDAQ 1.44% 3,020.06

COLOMBO -0.35% 5,494.54

STI -0.39% 3,026.61

Regional Market Focus

2 November 2012

10 of 17

Singapore

Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)

GOLDEN AGRI-RESO 0.62 -1.60 -0.010 74,704 YHM GROUP LTD 0.02 -6.25 -0.001 134,306

SINGAP TELECOMM 3.21 -0.31 -0.010 65,895 GOLDEN AGRI-RESOURCES LTD 0.62 -1.60 -0.010 121,979

DBS GROUP HLDGS 13.80 -0.72 -0.100 55,160 DIGILAND INTERNATIONAL LTD 0.00 +0.00 +0.000 72,908

NOBLE GROUP LTD 1.27 -3.44 -0.045 47,661 CCFH LTD 0.06 +14.55 +0.008 71,874

KEPPEL CORP LTD 10.56 -0.94 -0.100 44,399 OCEANUS GROUP LTD 0.03 -12.90 -0.004 47,402

GLOBAL LOGISTIC 2.66 +3.50 +0.090 43,214 IPCO INTERNATIONAL LTD 0.02 -5.26 -0.001 42,672

UNITED OVERSEAS 18.18 -0.49 -0.090 40,073 NOBLE GROUP LTD 1.27 NA NA 37,309

WILMAR INTERNATI 3.06 -0.97 -0.030 39,247 THAI BEVERAGE PCL 0.44 +0.00 +0.000 36,416

NEPTUNE ORIENT 1.18 +1.72 +0.020 36,524 NEPTUNE ORIENT LINES LTD 1.18 +1.72 +0.020 30,908

GENTING SINGAPOR 1.35 +1.13 +0.015 35,167 GENTING SINGAPORE PLC 1.35 +1.13 +0.015 26,281

Hong Kong

Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)

IND & COMM BK-H 5.20 +1.36 +0.07 1,687,907 BANK OF CHINA-H 3.21 +0.63 +0.02 359,508

CHINA NATL BDG-H 10.38 +5.06 +0.50 1,513,134 IND & COMM BK-H 5.20 +1.36 +0.07 326,939

CHINA MOBILE 87.30 +1.57 +1.35 1,466,828 CHINA CONST BA-H 5.89 +0.86 +0.05 245,209

CHINA CONST BA-H 5.89 +0.86 +0.05 1,433,855 CHINA SHIPPING-H 2.24 +8.21 +0.17 228,083

BANK OF CHINA-H 3.21 +0.63 +0.02 1,149,409 GCL-POLY ENERGY 1.38 +0.00 +0.00 200,863

PETROCHINA CO-H 10.52 -0.57 -0.06 1,132,161 AGRICULTURAL-H 3.40 +1.19 +0.04 180,697

AIA GROUP LTD 31.20 +1.63 +0.50 1,035,014 MEDIA CHINA CO 0.30 +18.47 +0.05 153,681

CHINA LIFE INS-H 23.40 +2.18 +0.50 938,688 CHINA NATL BDG-H 10.38 +5.06 +0.50 147,666

CNOOC LTD 16.14 +0.25 +0.04 880,960 GOME ELECTRICAL 0.84 +3.70 +0.03 127,714

PING AN INSURA-H 61.95 +0.90 +0.55 847,518 EVERGRANDE REAL 3.48 +2.65 +0.09 116,164

Thailand

Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)

SIAM CEMENT PCL 389.00 +4.01 +15.00 2,050,892 BANGKOK LAND PCL 1.36 +3.03 +0.04 838,535

ADVANCED INFO 192.00 -2.78 -5.50 1,562,589 NATURAL PARK PCL 0.03 +0.00 +0.00 214,313

BANGKOK BANK PUB 176.50 -0.28 -0.50 1,199,528 TRUE CORP PCL 4.90 -3.92 -0.20 182,716

BANGKOK LAND PCL 1.36 +3.03 +0.04 1,134,037 ITALIAN-THAI DVL 4.08 +0.99 +0.04 167,640

SIAM COMM BK PCL 160.50 -0.31 -0.50 1,058,904 MAX METAL CORP P 0.23 +0.00 +0.00 159,381

TPI POLENE PCL 15.00 +6.38 +0.90 1,051,787 JASMINE INTL PCL 4.90 +1.24 +0.06 157,434

VGI GLOBAL MEDIA 63.25 +8.12 +4.75 911,353 INTL ENGINEERING 0.01 -50.00 -0.01 149,429

TRUE CORP PCL 4.90 -3.92 -0.20 902,591 THAI-GERMAN PRO 0.64 +0.00 +0.00 129,499

KASIKORNBANK PCL 178.50 -0.28 -0.50 801,856 THAI FILM INDUST 2.38 +2.59 +0.06 102,836

PTT GLOBAL CHEM 60.25 -1.23 -0.75 797,960 SAHAVIRYA STEEL 0.64 -3.03 -0.02 101,533

Indonesia

Top 10 Value Last % Chg Chg Value ('mn) Top 10 Volume Last % Chg Chg Volume ('k)

BANK RAKYAT INDO 7,200 -2.70 -200.0 704,445 BAKRIELAND DEV 61 -6.15 -4.0 645,752

ASTRA INTERNATIO 7,900 -1.86 -150.0 411,398 PAKUWON JATI TBK 245 -12.50 -35.0 240,633

TELEKOMUNIKASI 9,750 0.00 0.0 242,558 SUGIH ENERGY 125 1.63 2.0 178,373

BANK MANDIRI 8,300 0.61 50.0 227,678 TRADA MARITIME 970 2.11 20.0 172,105

TRADA MARITIME 970 2.11 20.0 162,665 ENERGI MEGA PERS 88 -3.30 -3.0 141,721

PERUSAHAAN GAS N 4,575 -1.61 -75.0 151,583 KALBE FARMA 990 2.06 20.0 101,870

INDOCEMENT TUNGG 22,150 3.50 750.0 151,036 BANK RAKYAT INDO 7,200 -2.70 -200.0 97,361

UNITED TRACTORS 21,150 0.24 50.0 140,940 BUMI RESOURCES M 415 -4.60 -20.0 93,324

BANK NEGARA INDO 3,725 -3.25 -125.0 113,621 SENTUL CITY TBK 188 -2.59 -5.0 86,907

KALBE FARMA 990 2.06 20.0 98,875 BUMI RESOURCES 660 0.00 0.0 84,467

Sri Lanka

Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)

JOHN KEELLS HLDG 206.50 0.63 1.30 14,750 SMB LEASING - NV 0.40 0.00 0.00 3,192

LANKA IOC PLC 17.50 0.00 0.00 9,449 RENUKA AGRI FOOD 4.90 -2.00 -0.10 553

ASIAN HOTELS PLC 76.10 -1.81 -1.40 7,793 LANKA IOC PLC 17.50 0.00 0.00 540

CT HOLDINGS PLC 130.30 -0.08 -0.10 7,568 SWARNAMAHAL FINA 3.70 0.00 0.00 523

CEYLON TOBACCO 711.00 0.13 0.90 6,555 PANASIAN POWER L 2.50 0.00 0.00 423

NATIONS TRUST BK 56.00 -0.88 -0.50 5,778 OVERSEAS REALTY 14.00 0.00 0.00 352

OVERSEAS REALTY 14.00 0.00 0.00 4,928 SMB LEASING PLC 1.00 0.00 0.00 328

COMMERCIAL BK 102.90 -1.91 -2.00 3,717 FREE LANKA CAPIT 2.60 4.00 0.10 283

COMMERCIAL BK-NV 90.70 -0.87 -0.80 3,161 ASIRI HOSPITALS 11.40 0.00 0.00 232

TOKYO CEMENT NV 19.00 -0.52 -0.10 2,791 DIALOG AXIATA PL 8.20 5.13 0.40 224

Source: Bloomberg

Regional Market Focus

2 November 2012

11 of 17

Australia

Top 10 Value Last % Chg Chg Value ('mn) Top 10 Volume Last % Chg Chg Volume ('mn)

NATIONAL AUSTRALIA BANK 25.020 -2.99 -0.77 483.96 TEN NETWORK HOLDINGS LTD 0.270 -3.57 -0.01 124.05

BHP BILLITON LTD 33.820 -1.26 -0.43 339.35 STRATOS RESOURCES LTD 0.001 0.00 0.00 66.90

COMMONWEALTH BANK OF

AUSTRAL57.270 -0.83 -0.48 305.29 ARRIUM LTD 0.685 -12.74 -0.10 61.20

AUST AND NZ BANKING GROUP 25.330 -0.47 -0.12 260.28 GOLDEN GATE PETROLEUM LTD 0.007 -12.50 0.00 39.35

WESTPAC BANKING CORP 25.140 -1.45 -0.37 208.43 TELSTRA CORP LTD 4.090 -1.21 -0.05 29.72

RIO TINTO LTD 56.250 -1.21 -0.69 144.73 RIALTO ENERGY LTD 0.120 0.00 0.00 28.70

TELSTRA CORP LTD 4.090 -1.21 -0.05 122.12 TRANSPACIFIC INDUSTRIES 0.730 -4.58 -0.04 28.36

WOOLWORTHS LTD 29.010 -1.36 -0.40 90.79 NEPTUNE MARINE SERVICES 0.032 3.23 0.00 26.98

FORTESCUE METALS GROUP 3.990 -2.21 -0.09 87.70 FORTESCUE METALS GROUP 3.990 -2.21 -0.09 21.88

QBE INSURANCE GROUP LTD 12.890 -2.20 -0.29 74.47 NATIONAL AUSTRALIA BANK 25.020 -2.99 -0.77 19.20

Source: Bloomberg

Commodities % Chg Chg Last Price of S$1 Price of US$1

GOLD SPOT (US$/OZ) +0.15 +2.60 1,714.25 0.7881 1.0396

SILVER SPOT (US$/OZ) +0.25 +0.08 32.27 0.8170 0.9971

WTI Cushing Crude Oil Spot Price (US$/bbl) +0.99 +0.85 87.09 0.6336 1.2934

0.5082 1.6124

0.8195 1.0000

Commodities % Chg Chg Last 5.1140 6.2405

Malaysian Rubber Board Standard (MYR/kg) +1.23 +10.50 865.75 6.3507 7.7501

PALM OIL (MYR/Metric Tonne) +0.49 +11.50 2,340.00 65.6900 80.1400

893.8790 1090.8900

Index % Chg Chg Last 2.5007 3.0520

DOLLAR INDEX SPOT +0.16 +0.13 80.05 25.1803 30.7300

Source: Bloomberg

CANADIAN DOLLAR

EURO

BRITISH POUND

Currencies

AUSTRALIAN DOLLAR

Commodities & Currencies

JAPANESE YEN

KOREAN WON

MALAYSIAN RINGGIT

THAI BAHT

US DOLLAR

CHINA RENMINBI

HONG KONG DOLLAR

Maturity Today Yesterday Last Week Last Month

3 Months 0.07 0.08 0.09 0.06

6 Months 0.12 0.13 0.14 0.12

2 Years 0.28 0.28 0.31 0.23

3 Years 0.38 0.38 0.43 0.30

5 Years 0.74 0.72 0.82 0.61

10 Years 1.72 1.69 1.82 1.62

30 Years 2.90 2.86 2.97 2.81

Yield Spread (10 yrs - 3 mths)

Yield Spread (10 yrs - 2 yrs)

US Treasury Yields

1.65

1.44

Source: Data provided by ValuBond – http://w w w .valubond.com

Regional Market Focus

2 November 2012

12 of 17

Date Statistic For Survey Prior Date Statistic For Survey Prior

11/2/2012 Total Vehicle Sales Oct 14.90M 14.88M 11/5/2012 Electronics Sector Index Oct 49.7 50

11/2/2012 Domestic Vehicle Sales Oct 11.48M 11.49M 11/5/2012 Purchasing Managers Index Oct 49 48.7

11/2/2012 Change in Nonfarm Payrolls Oct 125K 114K 11/7/2012 Automobile COE Open Bid Cat A 7-Nov -- 71001

11/2/2012 Change in Private Payrolls Oct 124K 104K 11/7/2012 Automobile COE Open Bid Cat B 7-Nov -- 85801

11/2/2012 Change in Manufact. Payrolls Oct -3K -16K 11/7/2012 Automobile COE Open Bid Cat E 7-Nov -- 87000

11/2/2012 Unemployment Rate Oct 7.90% 7.80% 11/7/2012 Foreign Reserves Oct -- $252.15B

11/2/2012 Avg Hourly Earning MOM All Emp Oct 0.20% 0.30% 11-18 NOV GDP (annualized) (QoQ) 3Q F -- -1.50%

11/2/2012 Avg Hourly Earning YOY All Emp Oct 1.70% 1.80% 11-18 NOV GDP (YoY) 3Q F -- 1.30%

11/2/2012 Avg Weekly Hours All Employees Oct 34.5 34.5 11/15/2012 Retail Sales Ex Auto (YoY) Sep -- 2.70%

11/2/2012 Change in Household Employment Oct -- 873 11/15/2012 Retail Sales (YoY) Sep -- 3.20%

11/2/2012 Underemployment Rate (U6) Oct -- 14.70% 11/15/2012 Retail Sales (MoM) sa Sep -- 0.90%

11/2/2012 ISM New York Oct -- 52.9 11/16/2012 Electronic Exports (YoY) Oct -- -16.40%

11/2/2012 Factory Orders Sep 4.60% -5.20% 11/16/2012 Non-oil Domestic Exports (YoY) Oct -- -3.40%

11/5/2012 ISM Non-Manf. Composite Oct 54.5 55.1 11/16/2012 Non-oil Domestic Exp SA (MoM) Oct -- 1.60%

11/6/2012 JOLTs Job Openings Sep -- 3561 11/21/2012 Automobile COE Open Bid Cat A 21-Nov -- --

Date Statistic For Survey Prior Date Statistic For Survey Prior

11/2/2012 Consumer Confidence Oct -- 77 05-07 NOV Purchasing Managers Index Oct -- 49.6

11/2/2012 Consumer Confidence Economic Oct -- 67.5 11/7/2012 Foreign Currency Reserves Oct -- $301.2B

11/2/2012 Foreign Reserves 26-Oct -- $182.4B 11/16/2012 GDP (YoY) 3Q -- 1.10%

11/2/2012 Forw ard Contracts 26-Oct -- $25.5B 11/16/2012 GDP sa (QoQ) 3Q -- -0.10%

11/9/2012 Foreign Reserves 2-Nov -- -- 11/18/2012 Unemployment Rate SA Nov -- 3.30%

11/9/2012 Forw ard Contracts 2-Nov -- -- 11/19/2012 Composite Interest Rate Oct -- 0.38%

11/16/2012 Foreign Reserves 9-Nov -- -- 11/19/2012 Unemployment Rate SA Oct -- --

11/16/2012 Forw ard Contracts 9-Nov -- -- 11/22/2012 CPI - Composite Index (YoY) Oct -- 3.80%

16-20 NOV Total Car Sales Oct -- 132874 11/27/2012 Exports YoY% Oct -- 15.20%

11/19/2012 Gross Domestic Product SA (QoQ) 3Q -- 3.30% 11/27/2012 Imports YoY% Oct -- 14.90%

11/19/2012 Gross Domestic Product (YoY) 3Q -- 4.20% 11/27/2012 Trade Balance Oct -- -45.2B

11/23/2012 Foreign Reserves 16-Nov -- -- 11/29/2012 Retail Sales - Value (YoY) Oct -- --

11/23/2012 Forw ard Contracts 16-Nov -- -- 11/29/2012 Retail Sales - Volume (YoY) Oct -- --

23-28 NOV Customs Exports (YoY) Oct -- 0.20% 11/30/2012 Money Supply M1 - in HK$ (YoY) Oct -- 10.30%

23-28 NOV Customs Imports (YoY) Oct -- -7.70% 11/30/2012 Money Supply M2 - in HK$ (YoY) Oct -- 11.00%

US Singapore

Economic Announcement

Thailand Hong Kong

Source: Bloomberg

Source: BloombergSource: Bloomberg

Source: Bloomberg

Regional Market Focus

2 November 2012

13 of 17

Date Statistic For Survey Prior Date Statistic For Survey Prior

01-02 NOV Consumer Confidence Index Oct -- 117.7 11/8/2012 Repurchase Rate 8-Nov -- 7.75%

11/5/2012 GDP Constant Price (YoY) 3Q 6.17% 6.37% 11/8/2012 Reverse Repo Rate 8-Nov -- 9.75%

11/5/2012 GDP Constant Price (QoQ) 3Q 3.26% 2.80% 09-20 NOV Exports YoY% Sep -- -13.10%

05-08 NOV Foreign Reserves Oct -- $110.17B 09-20 NOV Imports YoY% Sep -- -4.70%

05-08 NOV Net Foreign Assets (IDR Tln) Oct -- 1023.02T 11/30/2012 CPI Moving Average (YoY) Nov -- --

11/8/2012 Bank Indonesia Reference Rate 8-Nov 5.75% 5.75% 11/30/2012 CPI (YoY) Nov -- --

11/9/2012 Current Account Balance 3Q -- -- 12/6/2012 Repurchase Rate 6-Dec -- --

12-20 NOV Total Local Auto Sales Oct -- 102111 12/6/2012 Reverse Repo Rate 6-Dec -- --

12-20 NOV Total Motorcycle Sales Oct -- 620499 10-12 DEC Exports YoY% Oct -- --

11/29/2012Bloomberg Indonesia Economic

Survey for November10-12 DEC Imports YoY% Oct -- --

12/3/2012 Inflation (YoY) Nov -- 4.61% 14-31 DEC GDP (YoY) 3Q -- 6.40%

12/3/2012 Inflation NSA (MoM) Nov -- 0.16% 12/31/2012 CPI Moving Average (YoY) Dec -- --

12/3/2012 Core Inflation (YoY) Nov -- 4.59% 12/31/2012 CPI (YoY) Dec -- --

12/3/2012 Exports (YoY) Oct -- -9.40%

12/3/2012 Total Imports (YoY) Oct -- 1.20%

Date Statistic For Survey Prior

11/2/2012 Producer Price Index (QoQ) 3Q 1.00% 0.50%

11/2/2012 Producer Price Index (YoY) 3Q 1.60% 1.10%

11/5/2012 AiG Performance of Service Index Oct -- 41.9

11/5/2012 TD Securities Inflation MoM% Oct -- 0.20%

11/5/2012 TD Securities Inflation YoY% Oct -- 2.40%

11/5/2012 Trade Balance Sep -- -2027M

11/5/2012 Retail Sales s.a. (MoM) Sep -- 0.20%

11/5/2012 Retail Sales Ex Inflation(QoQ) 3Q -- 1.40%

11/5/2012 ANZ Job Advertisements (MoM) Oct -- -2.80%

11/6/2012 House Price Index QoQ 3Q -- 0.50%

11/6/2012 House Price Index YoY 3Q -- -2.10%

11/6/2012 RBA CASH TARGET 6-Nov 3.00% 3.25%

11/7/2012 AiG Perf of Construction Index Oct -- 30.9

11/7/2012 Foreign Reserves Oct -- A$44.9B

11/8/2012 Employment Change Oct -- 14.5K

Source: Bloomberg

Source: Bloomberg

Indonesia

Australia

Sri Lanka

Source: Bloomberg

PHILLIP RESEARCH STOCK SELECTION SYSTEMS

BUY >15% upside from the current price

HOLD Trade within ± 15% from the current price

SELL >15% downside from the current price

We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors

like (but not limited to) a stock's risk reward profile, market sentiment, recent rate of share price appreciation, presence or

absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final

recommendation

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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