MICA (P) 081/12/2011 Ref No: RM2012_0042 1 of 16

Phillip Securities Research Pte Ltd

Regional Market Focus

2 March 2012

Singapore STI: -0.51% to 2978.8 MSCI Asia Pac ex-Japan: -0.96% Euro Stoxx 50: +1.45% S&P500: +0.62% to 1374 Economic data of late has seen industrial production pick up across Asia, ISM

mfg data in China, Japan and Taiwan all improved marginally. EZ remained in contraction, while the pace of mfg expansion in the US slowed with new orders falling as well. US real disposable income fell as fiscal supports continue to withdraw, real consumption was flat for the 3rd month running, in line with our view that consumption would be held back by fiscal tightening and now by rising crude. All in all the data supports the case that recovery is darned unexciting but not dead either. Globally, the mfg PMI slightly decelerated from 51.3 to 51.1, global new orders also decelerated 51.7 to 51.3.

European markets rallied as expanded LTROs further drove down Spanish and Italian yields.

The S&P500 continues to make new highs on lower momentum and declining volumes, so be careful. The omission of QE3 has not transpired into a sell trigger as economic data has met expectations. Positive spillover from the US into the STI today is likely as the ASX and NZSE are up, but we do note that the technical behaviour of the STI so far still suggests correction/consolidation. Investors unloaded into strength yesterday. Whether today will witness the end of consolidation to resume higher is anyone's guess. In any case, until Bernanke decided to omit QE3 from his testimony, we have been saying that stocks face an odd win-win underlying story over the short/medium term, and that corrections will likely be used to add positions because: if economic data is strong, stocks will of course rise; if economic data is weak, a correction will likely give way to a wave of liquidity and fiscal induced buying: (1) the Fed will consider QE3 if the US economy weakens, (2) China to fiscal loosen if its economy weakens, and (3) long term refinancing operations by the ECB expand. Obviously now that the market perceives that the QE3 safety net has been 'removed', this thesis is weakened. We still have (2) and (3) though, and we believe that if the US economy does weaken, QE3 will come back to the table.

For our larger trend market outlook, see Strategy 15 Feb 2012. For our Singapore Sector Strategy please see: Sector Strategy 1st Feb 2012.

Close +/- % +/-FSSTI 2978.84 -15.22 -0.51P/E (x) 11.20P/Bv (x) 1.41

3.66Dividend Yield

STRAITS TIMES INDEX

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3100

3300

3/1 6/1 9/1 12/1 3/1

Source: Bloomberg

Regional Market Focus 2 March 2012

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Hong Kong Local stocks declined. The HSI and HSCEI lost 292.12 points and 224.32 points

to 21387.96 and 11602.44 respectively. Market volume was 68.831 billion. As Bernanke did not mention details of QE3 for further boosting of the U.S

economy, the benchmark index dropped, and closed below the 10 SMA (21459). As we expected there was a major drop in Mainland property developer and cement sector, due to some news indicating that the China government is going to promote property tax which is a negative to China property.

Technically, we expect the HSI will challenge the 10 SMA today, and it is highly possible to recover the 10 SMA, we also expect HSI will form“Golden Cross” 50 SMA (20038) breakthrough 250 SMA (20903) which will favor the market future trend, investors are suggested to increase the equity weight in different level.

We peg resistance for the HSI at 21800 and support at 21400. Close +/- % +/-

HSI INDEX 21387.96 -292.12 -1.35P/E (x) 9.93P/Bv (x) 1.54

3.21Dividend Yield

HANG SENG INDEX

16000

18000

20000

22000

24000

26000

3/1 6/1 9/1 12/1 3/1

Source: Bloomberg

Thailand Thai stocks swung between positive and negative territory throughout the day as

the market looked for fresh cues for direction. The SET index finished the session up 4.08 points at 1164.98 points on Thursday as foreign buying of local shares continued unabated to the tune of Bt2,545.21mn.

Today the Thai stock market may continue its bullish momentum but further gains are likely to be limited. It seems to us that the SET index is likely to trade in a sideways to up pattern while the market is waiting for fresh triggers. For the meantime, the market seems to lack fresh cues for direction, except ECB cash boost for European banks, which has already been priced into the market somewhat. The baht held steady around 30.46 to the US dollar in today’s early trading (0750 hrs Thailand time). Foreign investors also increased net short positions in derivatives markets though they remained net buyers of local shares. Overall investors should closely monitor foreign fund flows as cumulative net foreign portfolio inflows in the latest round has now topped Bt60bn, well above the level of Bt50bn that normally triggers foreign profit taking. This could leave the market vulnerable to sporadic bouts of selling especially if there are new negative factors that affect equities and currencies.

In the near term, the strategy is to sell into strength and buy on dips in a range of 1158-1174.

Resistance on the main index is seen at 1166-1174 and support at 1158-1153 today.

Close +/- % +/-SET INDEX 1164.98 4.08 0.35P/E (x) 15.44P/Bv (x) 0.70

3.71Dividend Yield

STOCK EXCH OF THAI INDEX

800850900950

10001050110011501200

3/1 6/1 9/1 12/1 3/1

Source: Bloomberg

Indonesia JCI tumbled by 22.924 points or 0.58% to 3,962.286 on Thursday (01/03). Six

out of nine sectors ended down yesterday, led by consumer goods sector which fell 1.56%, followed by miscellaneous industry sector which declined 1.36% and finance sector which shed 0.92%. As many as 132 JCI’s constituents fell, 80 shares up, and 106 shares were unchanged yesterday, where the total turnover on regular market was IDR 2.607 trillion (USD 287.272 million)

We estimate the JCI would advance today, as positive momentum built up from US indexes as well as Asian indexes this morning. Crude oil which retreated to USD 108 per barel would also support the manufacturing sector today. We are looking at 3,930 and 4,000 as JCI's support and resistance.

Close +/- % +/-JCI Index 3962.29 -22.92 -0.58P/E (x) 20.33P/Bv (x) 2.91

2.00Dividend Yield

JAKARTA COMPOSITE INDEX

30003200340036003800400042004400

3/1 6/1 9/1 12/1 3/1

Source: Bloomberg

Regional Market Focus 2 March 2012

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Sri Lanka The Colombo Bourse opened the day with the positive momentum and continued

to be volatile during the trading day yet pervading in the green territory. The main All Share Price index (ASPI) gained 11.59 points and closed the day at 5,469.68; the more liquid Milanka Price Index (MPI) gained 12.13 points to close at 4,763.19. The market capitalization stands at LKR 2.00Tn.

241 counters traded during the day to record a turnover of LKR 2.6Bn; out of which LKR 2.13Bn was generated through privately negotiated deals took place with DIST.N (LKR 187Mn), NEST.N (LKR 23.00Mn) , LFIN.N (LKR 886.9Mn) and HAYL.N (LKR 1.03Bn).

The day recorded 5,503 trades which resulted in 27.3Mn shares changing hands. The price losers outnumbered the price gainers by 122:90. The market recorded a net foreign outflow of LKR 159.6Mn.

Close +/- % +/-CSEALL Index 5469.68 11.59 0.21P/E (x) 12.08P/Bv (x) 1.94

2.17Dividend Yield

SRI LANKA COLOMBO ALL SH

45005000550060006500700075008000

3/1 6/1 9/1 12/1 3/1

Source: Bloomberg

Australia The ASX fell roughly 1% yesterday as US Federal Reserve Chairman Ben

Bernanke dampened hopes of further quantitative easing. Utilities, materials and healthcare were the disappointing sectors. On the positive side, Chinese PMI was slightly higher than expected and ease fears of a hard landing.

The Australian market is in positive territory today as solid jobs and retail figures in the US spurred international markets overnight. ANZ Banking Group (ANZ) is having a particularly strong session.

Close +/- % +/-S&P/ASX 200 INDEX 4255.55 -43.00 -1.00P/E (x) 14.46P/Bv (x) 1.72

6.67Dividend Yield

STANDARD & POORS/ ASX 200 INDEX

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3/1 6/1 9/1 12/1 3/1

Regional Market Focus 2 March 2012

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Singapore Hu An Cable – Result Recommendation: BUY (Maintain) Previous close: S$0.152 Fair value: S$0.260 A sell-down by market in Dec coincided (anything but causal) with an announcement about ‘deemed parties’. Hu An beat its 4 peers in 4Q11 and FY11 results. RIM values it at $0.283. Fundamental-related price setting and peers’ results caution a conservative target. Maintain BUY with target price of $0.26. Telecommunications Sector – Update No major earnings surprise Launch of iPhone 4S lifted revenue in the quarter PayTV ARPU improved for Starhub 100k fibre broadband subscribers or 8% of total wired broadband Continue to prefer SingTel over Starhub & M1 Thailand Land & Houses-Company Update Recommendation: TRADING BUY’ Previous close: Bt7 Fair value: Bt7.50 YTD SDH/TH presales recovered sharply from flooding. Management reiterates its SDH/TH presales growth target of 15% for CY12. Condo backlog and SDH/TH presales recovery would be key revenue drivers. There is no scope for margin upside but profits from

affiliates especially QH would return to strong growth. On this basis, LH is expected to deliver CY12 pre-exceptional profit growth of 11%. LH plans to bundle three buildings into a property fund in 1QCY12 and it is expected to book a Bt315mn gain from the sale. Operating profile remains solid. With little upside from current trading levels, we maintain a ‘TRADING BUY’ rating on LH with a target

price of Bt7.50/share.

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Market News

US Consumer spending in the US rose less than forecast in January after little change the previous month, showing a lack of improvement

in the biggest part of the economy. Purchases climbed 0.2 per cent, while incomes increased 0.3 per cent, Commerce Department figures showed yesterday in Washington. The median estimate of economists surveyed by Bloomberg News called for a 0.4 per cent increase in spending and a 0.5 per cent rise in incomes. Households, whose spending accounts for about 70 per cent of the world's largest economy, may be reluctant to increase purchases as gas prices continue to climb and home prices keep falling. Bigger gains in employment and wages may be needed to give consumers the confidence to boost spending. (Source: BT Online)

Singapore Strong demand, especially in Asia, for 'green', environmentally friendly tyres has clearly outweighed eurozone jitters, with Germany's

Lanxess saying yesterday that it will go ahead to build a second synthetic rubber plant costing 200 million euros (S$333 million) here. With engineering work already well advanced, it will break ground on the Nd-PBR (neodymium polybutadiene) facility on Sept 11, with the plant on Jurong Island expected to start up in the first half of 2015.The German chemicals group has just sewn up feedstock and steam supply deals with Petrochemical Corporation of Singapore and Tuas Power for the Nd-PBR plant - bringing its total investment here to more than S$1 billion.(Source: BT Online)

Foreign worker levies will probably rise further in coming years, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said in Parliament yesterday as he wrapped up the three day long Budget debate.(Source: BT Online)

Greater China Region China's factories grew more than expected in February as new export orders for big firms bounced back, a government survey showed,

while a private-sector report portrayed a different picture of smaller companies lagging behind the rebound. China’s official purchasing managers' index (PMI) rose to 51.0, above expectations of 50.7 and higher than 50.5 in January, while the final reading of the HSBC PMI stood at 49.6, a shade higher than January's reading of 48.8, but still under the 50-point threshold demarcating expansion from contraction. (Source: BT Online)

Thailand Foreign investors remained net buyers of Thai equities worth Bt2,545.21mn on Thu. (Source: Bisnews) Thailand’s consumer price index (CPI) for Feb 2012 rose 3.35% y-y to 113.63 as food and beverage prices increased but the Commerce

Ministry still kept this year’s annual inflation target ceiling unchanged at 3.8%. (Source: Krungthep Turakij)

Indonesia Although the price of subsidized fuel will be raised, the government will retain the revised economic growth target of 6.5-6.6 percent,

lower than the assumption stipulated in the 2012 State Budget and Expenditure at 6.7 percent. Deputy Minister of Finance said the revision of growth will be presented to the House of Representatives today after being taken to the cabinet meeting. Meanwhile Coordinating Minister for Economic Affairs said the government will maintain the people’s purchasing power due to the increase of subsidized fuel. Discourse regarding the fund of corporate social responsibility (CSR) of State-Owned Enterprises which will be distributed as compensation fund towards the increase in fuel is not possible, according to Coordinating Minister for Economic Affairs, this is because the CSR activities of state-owned enterprises cannot be transferred in the form of direct cash assistance (Bantuan Langsung Tunai/BLT). The reason is because CSR is being presented as compensation funds for state-owned enterprises in the areas around the company. In order to maintain growth, the government will try to support the purchasing power of the people by providing several stimuli, both fiscal and social assistance to the people. (Source: Indonesia Finance Today)

The government will use the remaining budget (sisa anggaran lebih/SAL), excise and duty revenue, as well as securities issuances to widen the budget deficit. In the Revised State Budget of 2012, the government plans to widen the budget deficit from 1.53 percent to 2.2 percent. Director General of Debt Management at the Ministry of Finance said the government will prioritize government securities issuances and diversifying government securities instruments in the international market. According to the Ministry of Finance data, the country’s debt interest that matured in 2010 totaled IDR 88.38 trillion (USD 9.8 billion) or 5.3 percent from the government’s total debts. The figure in 2011 will reach IDR 106.58 trillion or 5.9 percent. This year, the total is IDR 122.22 trillion or 6.3 percent. (Source: Indonesia Finance Today)

Regional Market Focus 2 March 2012

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Sri Lanka Sri Lanka's Treasuries yields rose across maturities at Wednesday's auction though bond yields were pushed down by state managed

fund, ahead of a 51 billion rupee rollover due on Thursday. The state debt office said the 3-month yield rising 30 basis points to 9.81 percent, the 6-month yield rose 30 basis points to 9.94 percent and the 12-month yield rose 11 basis point to 10.30 percent, at Wednesday's auction. The debt office, which is a unit of the Central Bank said it sold 869 million rupees of 3-month bills, 733 million rupees of 6-month bills and 677 million rupees of 12-month bills. (Source: LBO)

Sri Lanka's consumer prices rose 2.7 percent in the 12-months to February 2012, easing from 3.8 percent in January, though the index gained 0.4 percent in the month, the state statistics office said. Sri Lanka's inflation remained low by historic standards despite a steep depreciation of the rupee in February. The index gained 1.2 percent in December following a fall in the currency in November. In February though non-food items in the index rose 1.8 percent in the month and were up 9.2 percent from a year earlier, food prices were down 4.1 percent from a last February. In the early part of 2011 food prices spiked amid floods. In February, the rupee was floated though some intervention is taking place from time to time. (Source: LBO)

Australia New Hope Corporation’s (NHC) share price yesterday fell 5% but at one stage was down over 10%. The coal miner said it had ended its

campaign of trying to sell the company with the Chairman stating it didn’t receive a definitive proposal. The lack of interest was blamed on credit markets and global volatility. (Source: The Age)

Orica (ORI) has announced that it will go ahead with plans to set up a US $700m ammonium nitrate facility in Western Australia. The chemicals and explosives manufacturer is targeting the state's mining industry but some analysts are suggesting their might soon be an oversupply. (Source: The Australian Financial Review)

Regional Market Focus 2 March 2012

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Dollar Index 78.78 -0.04% Gold 1,718.28 +0.09%

Crude oil 108.84 +1.65% US Treasury 10yr Yield 2.026 +0.06%

DJI 12,980.30 +0.22% S&P 500 INDEX 1,374.09 +0.62%

SHCOMP 2,426.12 -0.10%

Source: Bloomberg

10000

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Mar-11

Apr-11

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70

75

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85

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Regional Market Focus 2 March 2012

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Source: Bloomberg

Major World Indices

JCI -0.58% 3,962.29

HSI -1.35% 21,387.96

KLCI 0.24% 1,573.45

KOSPI 1.33% 2,030.25

NIKKEI -0.16% 9,707.37

SET 0.35% 1,164.98

SHCOMP -0.10% 2,426.12

SENSEX -0.95% 17,583.97

ASX -1.00% 4,255.50

FTSE 100 1.02% 5,931.25

DOW 0.22% 12,980.30

S&P 500 0.62% 1,374.09 NASDAQ 0.74% 2,988.97

COLOMBO 0.21% 5,469.68

STI -0.51% 2,978.84

Regional Market Focus 2 March 2012

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Top Value & VolumeSingaporeTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)GENTING SINGAPOR 1.61 -0.62 -0.010 120,092 GOLDEN AGRI-RESOURCES LTD 0.72 -1.37 -0.010 99,906SINGAP TELECOMM 3.13 -1.26 -0.040 92,071 EZION HOLDINGS LTD 0.88 -4.89 -0.045 92,057WILMAR INTERNATI 5.04 -1.37 -0.070 71,832 GENTING SINGAPORE PLC 1.61 -0.62 -0.010 74,450GOLDEN AGRI-RESO 0.72 -1.37 -0.010 66,990 OCEANUS GROUP LTD 0.09 -16.35 -0.017 66,451NOBLE GROUP LTD 1.42 -0.35 -0.005 53,215 MDR LTD 0.01 +0.00 +0.000 63,838OCBC BANK 8.92 -0.67 -0.060 36,638 CENTILLION ENV & RECYCLING 0.00 +0.00 +0.000 51,772DBS GROUP HLDGS 14.18 -0.14 -0.020 36,347 NOBLE GROUP LTD 1.42 -0.35 -0.005 37,683NEPTUNE ORIENT 1.40 +4.10 +0.055 34,894 SINGAPORE TELECOM LTD 3.13 -1.26 -0.040 31,444UNITED OVERSEAS 18.06 +0.06 +0.010 33,279 UNITED FIBER SYSTEM LTD 0.06 -3.28 -0.002 28,985KEPPEL CORP LTD 11.04 -0.09 -0.010 32,058 TOP GLOBAL LTD 0.01 -7.69 -0.001 26,971

Hong KongTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)COUNTRY GARDEN 3.20 -8.83 -0.31 3,696,375 COUNTRY GARDEN 3.20 -8.83 -0.31 1,144,562HSBC HLDGS PLC 69.20 -1.14 -0.80 2,350,592 IND & COMM BK-H 5.58 -1.93 -0.11 275,914CHINA CONST BA-H 6.48 -0.61 -0.04 1,561,958 FREEMAN FINANCIA 0.04 -2.33 -0.00 260,745IND & COMM BK-H 5.58 -1.93 -0.11 1,552,644 BANK OF CHINA-H 3.32 -1.78 -0.06 244,953CHINA MOBILE 81.40 -1.75 -1.45 1,001,493 CHINA CONST BA-H 6.48 -0.61 -0.04 240,598TENCENT HOLDINGS 199.30 -1.34 -2.70 939,556 GOME ELECTRICAL 2.31 -2.53 -0.06 238,017BANK OF CHINA-H 3.32 -1.78 -0.06 816,487 CHIGO HOLDINGS 0.28 +1.82 +0.01 231,112EVERGRANDE REAL 4.53 -8.11 -0.40 752,395 VODONE LTD 1.29 -0.77 -0.01 194,532CHINA NATL BDG-H 10.62 -5.35 -0.60 743,759 GCL-POLY ENERGY 2.55 -4.49 -0.12 179,872ANHUI CONCH-H 25.60 -5.19 -1.40 690,668 LUMENA NEWMAT 2.10 -3.23 -0.07 172,102

ThailandTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)INDORAMA VENTURE 40.00 -0.62 -0.25 2,351,819 JASMINE INTL PCL 2.56 +6.67 +0.16 540,096CHAROEN POK FOOD 37.25 +2.76 +1.00 1,812,393 TMB BANK PCL 1.73 -0.57 -0.01 285,028SHIN CORP PCL 53.75 +2.38 +1.25 1,643,286 THAI-GERMAN PRO 0.21 +5.00 +0.01 235,046PTT PCL 364.00 +0.28 +1.00 1,502,208 SANSIRI PUB CO 2.06 +0.00 +0.00 198,047JASMINE INTL PCL 2.56 +6.67 +0.16 1,344,216 RAIMON LAND PCL 1.47 +1.38 +0.02 193,263SIAM CEMENT PCL 359.00 +0.56 +2.00 1,501,461 TRUE CORP PCL 3.36 +0.60 +0.02 151,815CP ALL PCL 65.50 -1.13 -0.75 983,401 IRPC PCL 4.78 +0.84 +0.04 118,598ESSO THAILAND 13.70 +2.24 +0.30 911,127 NATURAL PARK PCL 0.03 +0.00 +0.00 101,387BANGKOK BANK PUB 180.00 -0.55 -1.00 902,883 PANJAWATTANA 4.38 +4.29 +0.18 89,507PTT EXPL & PROD 185.50 +0.54 +1.00 817,161 BTS GROUP HOLDIN 0.75 +1.35 +0.01 89,144

IndonesiaTop 10 Value Last % Chg Chg Value ('mn) Top 10 Volume Last % Chg Chg Volume ('k)BANK RAKYAT INDO 6,700 -2.90 -200 344,933 SMARTFREN TELECO 92 2.22 2 476,833ASTRA INTERNATIO 69,650 -1.69 -1,200 202,575 ENERGI MEGA PERS 187 -1.58 -3 133,135BANK MANDIRI 6,350 -1.55 -100 133,709 MODERNLAND REALT 410 2.50 10 119,595UNITED TRACTORS 29,350 1.21 350 101,147 STAR PETROCHEM T 56 -6.67 -4 103,601MEDIA NUSANTARA 1,710 2.40 40 84,392 LIPPO KARAWACI 710 1.43 10 86,148AKR CORPORINDO 3,700 2.78 100 81,466 TRADA MARITIME 910 0.00 0 83,220TELEKOMUNIKASI 7,000 -0.71 -50 78,514 RICKY PUTRA 215 -4.44 -10 59,098TRADA MARITIME 910 0.00 0 75,712 BANK RAKYAT INDO 6,700 -2.90 -200 51,602BANK NEGARA INDO 3,700 -1.99 -75 64,115 MEDIA NUSANTARA 1,710 2.40 40 50,118LIPPO KARAWACI 710 1.43 10 60,959 BAKRIELAND DEV 127 -0.78 -1 44,325

Sri LankaTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)LB FINANCE PLC 140.20 1.59 2.20 1,049,830 LB FINANCE PLC 140.20 1.59 2.20 7,000HAYLEYS PLC 379.90 5.53 19.90 1,044,844 HAYLEYS PLC 379.90 5.53 19.90 2,750DISTILLERIES CO 138.50 2.59 3.50 195,669 PC HOUSE LTD 10.80 1.89 0.20 1,966JOHN KEELLS HLDG 177.90 1.37 2.40 34,828 SMB LEASING - NV 0.50 0.00 0.00 1,435NESTLE LANKA PLC 918.40 1.69 15.30 23,404 DISTILLERIES CO 138.50 2.59 3.50 1,428PC HOUSE LTD 10.80 1.89 0.20 21,619 PANASIAN POWER L 3.00 3.45 0.10 1,221ACME PRINTING 24.50 0.00 0.00 18,073 WASKADUWA BEACH 10.00 -3.85 -0.40 763REGNIS LANKA PLC 310.20 -3.84 -12.40 9,981 ACME PRINTING 24.50 0.00 0.00 718TOKYO CEMENT CO 42.00 3.70 1.50 8,197 SMB LEASING PLC 1.40 0.00 0.00 635WASKADUWA BEACH 10.00 -3.85 -0.40 7,780 NATION LANKA FIN 11.00 -2.65 -0.30 542Source: Bloomberg

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AustraliaTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)BHP BILLITON LTD 35.55 -1.52 -0.55 486,634 TELSTRA CORP LTD 3.30 0.00 0.00 48,408RIO TINTO LTD 66.25 -1.78 -1.20 262,834 FAR LTD 0.05 0.00 0.00 46,240COMMONW BK AUSTR 49.06 -0.75 -0.37 192,466 BLUESCOPE STEEL LTD 0.40 -4.76 -0.02 39,460TELSTRA CORP 3.30 0.00 0.00 159,695 ALUMINA LTD 1.31 -4.74 -0.07 27,864QBE INSURANCE 11.98 2.83 0.33 142,748 PRIMA BIOMED LTD 0.23 -10.00 -0.03 27,646AUST AND NZ BANK 21.69 -1.18 -0.26 147,339 NUPOWER RESOURCES LTD 0.04 -2.63 0.00 25,683NATL AUST BANK 23.58 -0.38 -0.09 134,627 LYNAS CORP LTD 1.16 -5.33 -0.07 25,281WESTPAC BANKING 20.70 -0.96 -0.20 129,457 RENISON CONSOLIDATED MINES 0.00 0.00 0.00 23,435WOODSIDE PETRO 36.45 -2.12 -0.79 117,860 CONTINENTAL COAL LTD 0.28 17.02 0.04 20,381NEWCREST MINING 32.55 -2.81 -0.94 110,291 JERVOIS MINING LTD 0.00 0.00 0.00 20,214Source: Bloomberg

Commodities % Chg Chg Last Price of S$1 Price of US$1GOLD SPOT (US$/OZ) +0.09 +1.52 1,718.28 0.7401 1.0809SILVER SPOT (US$/OZ) -0.01 -0.00 35.48 0.7888 0.9855WTI Cushing Crude Oil Spot Price (US$/bbl) +1.65 +1.77 108.84 0.6010 1.3311

0.5014 1.59570.8002 1.0000

Commodities % Chg Chg Last 5.0400 6.3003Malaysian Rubber Board Standard (MYR/kg) +0.45 +5.00 1,120.00 6.2045 7.7554PALM OIL (MYR/Metric Tonne) -0.72 -23.00 3,185.00 64.8900 81.1200

893.2383 1116.5300Index % Chg Chg Last 2.4008 3.0015 DOLLAR INDEX SPOT -0.04 -0.03 78.78 24.4034 30.5000Source: Bloomberg

JAPANESE YENKOREAN WONMALAYSIAN RINGGITTHAI BAHT

US DOLLARCHINA RENMINBIHONG KONG DOLLAR

CANADIAN DOLLAREUROBRITISH POUND

CurrenciesAUSTRALIAN DOLLAR

Commodities & Currencies

Maturity Today Yesterday Last Week Last Month3 Months 0.05 0.06 0.07 0.036 Months 0.10 0.11 0.12 0.072 Years 0.29 0.29 0.30 0.213 Years 0.41 0.41 0.42 0.295 Years 0.87 0.84 0.86 0.7010 Years 2.03 1.97 1.99 1.7930 Years 3.15 3.08 3.13 2.94

Yield Spread (10 yrs - 3 mths)Yield Spread (10 yrs - 2 yrs)

US Treasury Yields

1.981.74

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

Regional Market Focus 2 March 2012

11 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior3/2/2012 Total Vehicle Sales FEB 14.00M 14.13M 3/5/2012 Electronics Sector Index FEB - - 50.53/2/2012 Domestic Vehicle Sales FEB 11.00M 11.05M 3/5/2012 Purchasing Managers Index FEB - - 48.73/2/2012 ISM New York FEB - - - - 3/7/2012 Automobile COE Open Bid Cat A 7-Mar - - - -3/5/2012 ISM Non-Manf. Composite FEB 56.6 56.8 3/7/2012 Automobile COE Open Bid Cat B 7-Mar - - - -3/5/2012 Factory Orders JAN 0.0% 1.1% 3/7/2012 Automobile COE Open Bid Cat E 7-Mar - - - -3/7/2012 MBA Mortgage Applications 40970 - - -0.3% 3/7/2012 Foreign Reserves FEB - - $245.49B3/7/2012 ADP Employment Change FEB 200K 170K 3/13/2012 Singapore Manpow er Survey 2Q - - 16%3/7/2012 Nonfarm Productivity 4Q F 0.8% 0.7% 3/15/2012 Unemployment Rate (sa) 4Q F - - 2.0%3/7/2012 Unit Labor Costs 4Q F 1.2% 1.2% 3/15/2012 Retail Sales Ex Auto (YoY) JAN - - 8.1%07-08 MAR 3/15/2012 Retail Sales (YoY) JAN - - 4.2%3/8/2012 Consumer Credit JAN $10.000B $19.308B 3/15/2012 Retail Sales (MoM) sa JAN - - -2.4%3/8/2012 Challenger Job Cuts YoY FEB - - 38.9% 3/16/2012 Electronic Exports (YoY) FEB - - -10.9%3/8/2012 Initial Jobless Claims 40971 - - - - 3/16/2012 Non-oil Domestic Exports (YoY) FEB - - -2.1%40976 Continuing Claims 40964 - - - - 3/16/2012 Non-oil Domestic Exp SA (MoM) FEB - - 0.9%3/8/2012 Bloomberg Consumer Comfort 40972 - - - - 3/21/2012 Automobile COE Open Bid Cat A 21-Mar - - - -

Date Statistic For Survey Prior Date Statistic For Survey Prior3/2/2012 Consumer Conf idence Economic FEB - - 64 3/5/2012 Puchasing Managers Index FEB - - - -3/2/2012 Foreign Reserves 24-Feb - - $179.2B 3/7/2012 Foreign Currency Reserves FEB - - - -3/2/2012 Forw ard Contracts 24-Feb - - $29.6B 3/13/2012 Industrial Production (YoY) 4Q - - 0.2%05-09 MAR Customs Exports (YoY) JAN 0.0% -2.0% 2/13/2012 Producer Price (YoY) 4Q - - 9.6%05-09 MAR Customs Imports (YoY) JAN 6.4% 19.1% 3/19/2012 Unemployment Rate SA FEB - - - -05-09 MAR Customs Trade Balance JAN -$1975M -$2130M 3/19/2012 Composite Interest Rate FEB - - 0.49%06-10 MAR Total Exports YOY% JAN - - -2.1% 3/22/2012 Bal of Paymts - Overall 4Q - - $23.56B06-10 MAR Total Exports in US$ Million JAN - - $16856M 3/22/2012 CPI - Composite Index (YoY) FEB - - 6.1%06-10 MAR Total Imports YOY% JAN - - 19.60% 3/27/2012 Exports YoY% FEB - - - -06-10 MAR Total Imports in US$ Million JAN - - $17094M 3/27/2012 Imports YoY% FEB - - -10.5%06-10 MAR Total Trade Balance JAN - - -$238M 3/27/2012 Trade Balance FEB - - -8.9B06-10 MAR Current Account Balance (USD) JAN $1500M $1940M 3/29/2012 Retail Sales - Value (YoY) FEB - - - -06-10 MAR Overall Balance in US$ Million JAN - - -$1029M 3/29/2012 Retail Sales - Volume (YoY) FEB - - - -

3/9/2012 Foreign Reserves 2-Mar - - - - 3/30/2012 Money Supply M1 - in HK$ (YoY) FEB - - 1.3%

3/9/2012 Forw ard Contracts 2-Mar - - - - 3/30/2012 Money Supply M2 - in HK$ (YoY) FEB - - 5.6%

US SingaporeEconomic Announcement

Source: Bloomberg Source: Bloomberg

Thailand Hong Kong

Source: Bloomberg Source: Bloomberg

Revisions: ADP national Employment Report

Regional Market Focus 2 March 2012

12 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior01-05 MAR Consumer Conf idence Index FEB - - 119.2 3/6/2012 Repurchase Rate 6-Mar - - 7.500%05-08 MAR Foreign Reserves FEB - - $111.99B 3/6/2012 Reverse Repo Rate 6-Mar - - 9.000%05-08 MAR Net Foreign Assets (IDR Tln) FEB - - 980.78T 09-20 MAR Exports YoY% JAN - - - -07-13 MAR Money Supply - M1 (YoY) FEB - - 19.4% 09-20 MAR Imports YoY% JAN - - - -07-13 MAR Money Supply - M2 (YoY) FEB - - 16.4% 15-30 MAR GDP (YoY) 4Q - - 8.4%3/8/2012 Bank Indonesia Reference Rate 40976 - - 5.75% 3/30/2012 CPI Moving Average (YoY) MAR - - - -10-20 MAR Total Local Auto Sales FEB - - 76435 3/30/2012 CPI (YoY) MAR - - - -10-20 MAR Total Motorcycle Sales FEB - - 645863 10-20 APR Exports YoY% FEB - - - -41001 Inf lation (YoY) MAR - - 3.56% 10-20 APR Imports YoY% FEB - - - -41001 Inf lation NSA (MoM) MAR - - 0.05% 4/18/2012 Repurchase Rate 18-Apr - - - -41001 Core Inflation (YoY) MAR - - 4.31% 4/18/2012 Reverse Repo Rate 18-Apr - - - -41001 Exports (YoY) FEB - - 6.1% 4/18/2012 Reverse Repo Rate 18-Apr - - - -4/2/2012 Total Imports (YoY) FEB - - 16.0% 4/30/2012 CPI Moving Average (YoY) APR - - - -

41001 Total Trade Balance FEB - - $923M 10-21 MAY Exports YoY% MAR - - - -

41001 Consumer Conf idence Index MAR - - - - 10-21 MAY Imports YoY% MAR - - - -

Date Statistic For Survey Prior

3/5/2012 AiG Performance of Service Index

FEB - - 51.9

3/5/2012 TD Securities Inflation MoM% FEB - - 0.2%3/5/2012 TD Securities Inflation YoY% FEB - - 2.2%

3/5/2012 Company Operating Prof it QoQ% 4Q - - 4.8%

3/5/2012 Inventories 4Q - - -1.1%3/5/2012 ANZ Job Advertisements (MoM) FEB - - 6.0%3/6/2012 Current Account Balance 4Q - - -5637M3/6/2012 Australia Net Exports of GDP 4Q - - -0.63/6/2012 RBA CASH TARGET 40974 4.3% 4.3%3/7/2012 AiG Perf of Construction Index FEB - - 39.83/7/2012 Gross Domestic Product (QoQ) 4Q - - 1.0%3/7/2012 Gross Domestic Product (YoY) 4Q - - 2.5%3/7/2012 Foreign Reserves FEB - - A$46.8B3/8/2012 Employment Change FEB - - 46.3K3/8/2012 Unemployment Rate FEB - - 5.1%Source: Bloomberg

Source: BloombergSource: Bloomberg

Indonesia

Australia

Sri Lanka

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