MCI (P) 137/11/2012 Ref No: RM2013_0018 1 of 16

Regional Market Focus

Phillip Securities Research Pte Ltd

25 January 2013

Singapore

Tiger Airways Holdings – Results Recommendation: Sell Previous close: S$0.765 Fair value: S$0.65

Turnaround in profits as expected.

Outstanding performance from Tiger Airways Singapore on seasonal strength.

Start up losses at the JVs remain a drag

Switched to SOTP valuation model.

Maintain Sell with revised TP of S$0.65. Keppel Land Ltd – Company Results Recommendation: Neutral Previous close: S$4.05 Fair value: S$4.24

Credible set of 4Q12 results in a challenging year with turnover of $471.9mn, +26% y-y

PATMI $527.6mn, -55% y-y due to absence of divestment gain

China residential sales is improving but we believe the optimism has been priced in

Maintain Neutral with higher target price of $4.24 Keppel Corporation Ltd - 4Q12 Results Recommendation: Accumulate Previous close: S$11.34 Fair value: S$12.38

FY12 earnings in line

Dividends up 68% yoy

Maintain Accumulate and target price of S$12.38

Thailand

PTT Global Chemical – Trade Flash Recommendation: ACCUMULATE Previous close: Bt78 Fair value: Bt84

PTTGC is expected to report a 4QCY12 net profit of Bt9,302mn, down 28% q-q, in an absence of exceptionally high stock gains like in 3QCY12.

This year, earnings are expected to get a lift from the still-high level of aromatics margins and more synergies to be realized from the merger.

We rate PTTGC an ‘ACCUMULATE’ with a CY13 target price of Bt84/share.

Strategy Views

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

Regional Market Focus

25 January 2013

2 of 16

Morning Commentary

- STI: +0.53% to 3248.4 - MSCI SE Asia: +0.20% to 881.6 - HSCEI: -0.58% to 12095.8 - HSI: -0.15% to 23598.9 - MSCI APxJ: -0.44% to 477.3 - Euro Stoxx 50: +0.53% to 2722.9 - S&P500: +0.00% to 1494.8 MARKET OUTLOOK: By Joshua Tan, Hd of Research North Korea’s announcement of a planned nuclear test with the US in mind caused a huge intra-day reversal in N.Asian markets – China’s CSI300 gave up a 1.8% gain (on the back of better PMI, see Macro data) to close down almost 1%! While the HSCEI, Hang Seng, KOSPI and TWSE all lost ground as well. ASEAN however shrugged off the news and the STI continued to gain ground as we guided earlier in the week, as did Thailand’s SET. We’re thinking sabre rattling from North Korea, Asia should be used to by now. Underlying economic data continues to suggest economic expansion so we expect a resumption of the uptrend. The KLCI was on holiday yesterday. When it re-opens our stance is as we wrote yesterday. We have had a positive rejection off the 50wma/200dma, so it looks like a bounce higher is building legs. Nonetheless, PhillipCFD traders keep your stops tight in case it fails (in which case, a move below the 50wma/200dma, short). Something to note about the KLCI: this is now the SECOND test of the 50wma/200dma in THREE months. That’s not good for what has been a low volatility uptrend. Political risk is mounting as the market perceives a weak mandate for BN this election. Our asset strategy has Malaysia on Marketweight due to political risk. China, and HK strategist inform us that they are renewing their stock pick list: - Hd of China Research: China Merchants Bank (3968 HK), China Life Insurance (2628 HK) - Hd of HK Research: AIA (1299 HK) and HSBC (5 HK) - SG Equity Strategist: SIA for a turnaround play. Pan United, SATS, SGX for profit growth. SIAEC for an excellent long term investment. Capitaland for China exposure. As usual we finish off with our market outlook for the year: we continue to believe that this is a year for stocks and maintain OW on CN, HK, SG, TH and PH markets. Investors looking to invest in the first 4 markets should check out our Country Strategy reports (see above), else invest/trade them thru ETFs/CFDs listed in the Asset Strategy reports (see above). - Country Strategy: S’pore, 26 Dec / China & HK, 19 Dec / Thai, 19 Dec - Global Macro, Asset Strategy: 24 Jan, Update / 4 Jan / US, 21 Dec / ASEAN, 5 Dec MACRO DATA In US, jobless claims unexpectedly dropped by 5000 to 330,000 in the week ended on Jan 19, marking the level in 5 years, while the market was predicting a hike to 355,000. The labor market may face a hurdle from higher payroll taxes that took effect this month. As part of a budget agreement, Congress agreed to let the tax that funds Social Security return to its 2010 level of 6.2 percent from 4.2 percent, which exerts some downward but manageable pressure on household consumption going forward In Eurozone, manufacturing PMI rose to 47.5 in Jan, beating the market expected 46.6 and earlier 46.1, indicating a slower contraction in the region’s manufacturing sector. Services PMI also improved to 48.3 in Jan from prior 47.8, indicating a slower contraction of activities in service sector. In Germany, manufacturing PMI improved significantly to 48.8, from 46.0 in Dec, indicating a stabilizing manufacturing sector and services PMI hiked to 55.3 from 52.0 in Dec, indicating an accelerating expansion in the nation’s service sector. In Contrast to Germany, manufacturing PMI in France fell to 43.6, from 45.2 in Dec, indicating a faster contraction in manufacturing business. Services PMI also exacerbated, falling to 42.9 in Jan from 44.6 in Dec, indicating a fast contraction in the nation’s service sector. European Central Bank President Mario Draghi suggested this week the worst of the debt crisis may be over, saying the “darkest clouds” have lifted thanks to decisive policy steps last year. In South Korea, GDP grew by 0.4% q-q in 4q12, trailing the market expected 0.5% q-q pace, after the 0.1% q-q gain in 3q12. On y-y basis, GDP rose by 1.5% y-y in 4q12, the same pace as it was in 3q12, while the market was expecting a 1.8% y-y gain. The Bank of Korea lowered its forecast for the nation’s 2013 growth on 11th Jan to 2.8 percent from an October estimate of 3.2 percent. The economy will expand 3.8 percent next year, and consumer inflation will accelerate to 2.8 percent from this year’s 2.5 percent, according to the central bank’s projection. In China, HSBC flash PMI for Jan reported 51.9, beating the market expected 51.7 and the 51.5 reading in Dec, indicating a continued acceleration in the nation’s manufacturing sector. In Hong Kong, export growth unexpectedly rose to 14.4% y-y in Dec, from the 10.5% y-y pace in Nov, while the market was predicting a slowdown 9.2% y-y. The improved export data is mainly attributable to the rising demand from China’s re-acceleration and the recent improvement in US retail sales. In Vietnam, inflation accelerated to 7.07% in Jan, exceeding the market expected 6.95% pace, after the 6.81% pace in December. The hiking inflation has limited the central bank’s scope to add to last month’s interest-rate cut and bolster the economy.

Regional Market Focus

25 January 2013

3 of 16

Singapore The benchmark STI was little changed at 3,248.39 (+0.53%). 3.6bn shares were

traded with value worth S$1.7bn. As guided in our market commentaries, Tiger Airways reported a profit

turnaround in the quarter and markets rallied in response. Despite the near term exuberance, we maintain our negative view on the stock on valuation grounds.

Our property analyst raised his RNAV estimate and target price for Keppel Land. We maintain our positive view on Keppel Corp with results in line with our

expectations. The company would be dishing out higher cash distributions and a one-off dividend in specie of K-REIT.

Our top picks for the Singapore Market are Pan United, SIAEC & Capitaland. 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. 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 3248.39 17.16 0.53P/E (x) 12.36P/Bv (x) 1.47

2.85Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

1/25 4/25 7/25 10/25 1/25

Source: Bloomberg

Thailand Volatility remained extremely high throughout the day on Thu but Thai stock

spent most of the session in the positive territory amid rotation into big-cap petrochemical, energy and property names. The composite SET index rallied to test 1450 but failed to break through.

Better-than-expected economic data out of the US, China and Europe is likely to keep bullish sentiment intact. Next resistance for the composite SET index is seen at 1460 but we believe extreme volatility will continue to reign supreme along the way as all types of investors have increasingly turned to short-term trading. Yesterday foreign buying of Thai shares dropped to only around Bt60mn. The Thai baht this morning (0800 hrs Thailand time) continued its slight fall to 29.85 per US dollar. Investors may await fresh trading cues from the US FOMC policy meeting during the middle of next week and US labor market data due out before the end of the next week. Overall we expect the composite SET index to remain choppy in a range of 1440-1460 today.

For short-term strategy, we believe selective plays will continue to do well in current market conditions but investors should be more cautious in trading as sporadic bouts of profit taking may kick in along the way though the market would continue to trade in an uptrend. Cut-loss point is raised to 1420.

Today we peg resistance for the SET index at 1455-1462 and support at 1440-1432.

Close +/- % +/-SET INDEX 1449.09 9.89 0.69P/E (x) 17.78P/Bv (x) 2.44

2.70Dividend Yield

STOCK EXCH OF THAI INDEX

900

1000

1100

1200

1300

1400

1500

1/25 4/25 7/25 10/25 1/25

Source: Bloomberg

Indonesia

The Jakarta Composite Index edged up on Wednesday (23/01), after dominantly traded in negative territory in earlier and afternoon sessions, as markets in Asia turned lower on disappointing monetary decision from the Bank of Japan. The JCI rose 2.179 points, or 0.05%, at 4,418.727, with four of the 9 major industry groups ended in positive zone. Financial sector gained 0.55%, miscellaneous industry climbed 0.48%, and mining added 0.40%. LQ45 – the index tracking Indonesia’s blue-chip stocks – shed a fraction of a point, at 755.215. More than 100 shares advanced, 117 shares declined, 247 shares stagnated Wednesday on the Indonesia Stock Exchange, where 3.390 billion shares worth IDR 3.391 trillion traded on the regular board. Foreign market participants accumulated net purchases worth IDR 49.50 billion.

Indonesian stocks will likely advance in today’s sessions, buoyed by global markets’ positive sentiments. We expect the composite index to trade within 4,365 – 4,469 range.

Close +/- % +/-JCI Index 4418.73 2.18 0.05P/E (x) 17.72P/Bv (x) 2.89

2.05Dividend Yield

JAKARTA COMPOSITE INDEX

3400

3600

3800

4000

4200

4400

4600

1/25 4/25 7/25 10/25 1/25

Source: Bloomberg

Regional Market Focus

25 January 2013

4 of 16

Sri Lanka Bourse slows towards the end. The Colombo bourse exhibited a flat movement

throughout the day and concluded the last trading day of the week within a negative terrain staying both indices on red spaces. This was mainly due to heavy selling pressure prevailed during early hours and the sluggish participations of the investors. The Benchmark ASPI dropped marginal 5.47 points or 0.09% and stood at 5,878.19 while the S&P SL20 index dipped tiny 1.15 points (0.04%) to close at 3,190.65. The recorded daily turnover was LKR 569.2Mn, which was a 55.32% reduction against to the previous trading day. A total of 28Mn shares were traded during the day, which was a 61.09% decrease compared to the previous trading day. Bank Finance & Insurance (LKR 294Mn) and Manufacturing (LKR 73Mn) turned out as the best performers under the sectorial review. Foreigners appeared to be bearish for the 5th successive trading day resulting a net foreign outflow of LKR 99.3Mn during the day while extending the year to date net foreign outflow to LKR 453.4Mn.

Week at a Glance. The Colombo Bourse displayed a positive sentiment during the week which resulted both the indices to record positive closures against the closure of previous week. The ASPI gained marginal 2.42 points or 0.04% and the S&P SL20 index up by marginal 16.29 points or 0.51% during the week. The week recorded a turnover of LKR 4.8Bn supported by 26 crossings totalling up to LKR 2.85Bn accounting to significant 59.38% to the aggregated weekly turnover, which was an increase of 15.14% compared to the previous week. During the week, a total of 296Mn shares (126.75% increase compared to the previous week) changed hands.

Foreign sales amounting to 2.27Bn outpaced the foreign purchases of LKR 1.3Bn during the week, resulting a net foreign outflow of LKR 934.5Mn as at the closure of the week and the total market capitalization stood at LKR 2.26Tn, recording a year to date gain of 4.17% and the market PER(X) and PBV(X) stood at 16.64 and 2.16 respectively. The USD closed at LKR 128.67/-, this was the highest quoted rate during the week.

Close +/- % +/-CSEALL Index 5878.19 -5.47 -0.09P/E (x) 12.78P/Bv (x) 1.80

2.54

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

4700

4900

5100

5300

5500

5700

5900

6100

1/25 4/25 7/25 10/25 1/25

Source: Bloomberg

Australia

On Thursday the Australian stock market closed at a 20-month peak driven by strong gains for high yielding stocks. At the close on Thursday, the benchmark S&P/ASX200 index was up 22.4 points or 0.47 per cent to 4,810.2.

Today, the local market looks set to open higher, despite a mixed performance on Wall Street overnight. The SFE Futures 200 is pointing 14 higher or 0.29 per cent to 4,795.

Locally in equities news, Penrice Soda Holdings is due to hold a spill meeting, while ResMed is scheduled to release first half results, in San Diego, and Atlas Iron is expected to release December quarter results.

No major economic news is expected for Friday.

Close +/- % +/-S&P/ASX 200 INDEX 4810.22 22.40 0.47P/E (x) 18.56P/Bv (x) 1.91

5.86

STANDARD & POORS/ ASX 200 INDEX

Dividend Yield

3800

4000

4200

4400

4600

4800

5000

1/25 4/25 7/25 10/25 1/25

Source: Bloomberg

Regional Market Focus

25 January 2013

5 of 16

Hong Kong

Local stocks swung between gain and loss. The HSI and HSCEI dropped 17 points and 49 points to 23339 and 11858 respectively. Market volume was 78.294 billion, rose 6.6% dod.

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

Close +/- % +/-HSI INDEX 23598.90 -36.20 -0.15P/E (x) 12.11P/Bv (x) 1.58

2.99Dividend Yield

HANG SENG INDEX

17000

18000

19000

20000

21000

22000

23000

24000

1/25 4/25 7/25 10/25 1/25

Source: Bloomberg

Regional Market Focus

25 January 2013

6 of 16

Market News

US International investors are the most bullish on stocks in at least three-and-a-half years, with close to two-thirds planning to raise their

holdings of equities during the next six months, according to a Bloomberg survey. As the global financial and business elite gather in Davos for their annual forum, 53 per cent of respondents to the Bloomberg Global Poll also said that equities will offer the highest return in the next year. That is a 17 percentage point jump from the last poll in November and the most since the quarterly survey of investors, analysts and traders who subscribe to Bloomberg began in July 2009. Behind the enthusiasm for shares: growing confidence in the US economy and ebbing concerns about Europe. America is in its best shape in two years, according to the poll, with a majority of the 921 surveyed on Jan 17 describing the economy as improving. In a sign that the euro area's three-year debt crisis is easing, only 45 per cent said that the region's economy is still deteriorating, down from seven in 10 two months ago. (Source: BT Online)

Top US manufacturers sounded a confident note about their expectations for 2013 on Wednesday as fears of the year-end "fiscal cliff"

faded into memory. Textron Inc, whose Cessna unit is the world's biggest maker of corporate jets, laid out an earnings forecast that would represent growth of about 12 per cent, while larger peer United Technologies Corp, which makes Otis elevators, Carrier air conditioners and Sikorsky helicopters among other products, reiterated a projection that its profit would rise about 13 per cent. Executives at each company said demand is recovering after a year-end pause in ordering, when customers worried about a budget standoff that could have triggered large spending cuts and higher taxes in the United States. (Source: BT Online)

Singapore The government will be spending close to S$700 million on three new initiatives to make MRT stations more accessible, and to reduce

noise from trains along elevated tracks. The first of the three initiatives announced by Transport Minister Lui Tuck Yew on Thursday will see the Land Transport Authority (LTA) expanding the network of sheltered linkways from key transport nodes. (Source: BT Online)

Singapore will kick off shortly a second consultation round with industry players on the framework for future liquefied natural gas imports

here, said Senior Minister of State for Trade & Industry and National Development Lee Yi Shyan. Following the Energy Market Authority's first consultation exercise last March - the results of which are eagerly awaited - the regulator will start the second round "in the near future", he told an LNG conference here yesterday. (Source: BT Online)

Hong Kong

Zhang Zhirong, one of the richest men in China, gave up his controlling stake in China Rongsheng Heavy Industries Group Holdings Ltd. (1101), the country’s largest shipbuilder outside state control, which he co-founded. The former chairman has reduced his interest to 29.32 percent from almost 48 percent in transactions with his father and Rongsheng’s new head, according to a company filing to the Hong Kong stock exchange yesterday. He remains the biggest shareholder, it said. (Source: Bloomberg)

Lenovo Group Ltd. (992) is assessing potential acquisition targets and strategic alliances, including a deal with BlackBerry maker Research In Motion Ltd. (RIMM), as the second-largest producer of personal computers tries to bolster its mobile-device business. “We are looking at all opportunities -- RIM and many others,” Chief Financial Officer Wong Wai Ming said yesterday in an interview at the World Economic Forum’s meeting in Davos, Switzerland. “We’ll have no hesitation if the right opportunity comes along that could benefit us and shareholders.” (Source: Bloomberg)

Jaguar Land Rover Plc, the luxury unit of India’s biggest automaker, is betting surging sales inChina will help it defray royalty payments triggered by the company setting up factories outside the U.K. Jaguar is liable to pay royalties to Ford Motor Co. (F), which sold the brands to Tata Motors Ltd. (TTMT) in 2008 for $2.5 billion, for use of the platform required to make its best-selling cars when manufactured outside the U.K., it said in a U.S. regulatory filing on Jan. 23. The unit of Mumbai-based Tata Motors will build vehicles to suit Chinese markets, spokeswoman Kay Francis said in an e-mail response to questions. (Source: Bloomberg)

Thailand Foreign investors remained net buyers of Thai shares worth Bt59.48mn on Thu. (Source: Bisnews) The Transport Ministry said the government has paid attention to the development of rail transport infrastructure, adding that high-speed

train from Bangkok to Chiang Mai is slated for launch in 2018. (Source: Krungthep Turakij) Standard & Poor's, the US-based leading credit rating agency has maintained Thailand's credit rating unchanged at BBB+ with a stable

outlook, adding that even though Thailand’s economic fundamentals are still strong, political stability and the long-term impact of fiscal programs remain issues to watch. (Source: Bangkok Post)

Indonesia The Indonesian Investment Coordinating Board (BKPM) said throughout 2012, foreign direct investment (FDI) realization in the mining

sector reached USD 4.3 billion. These investments dominated sectors that have been the favorites of foreign investors in the period of January to December 2012 with a share of 17.3 percent. Investments in the mining sector recorded the highest achievement. The total value of FDI during 2012 reached IDR 313.2 trillion, or 110.5 percent of the targeted IDR 283.5 trillion. The investment value grew 24.63 percent from 2011's IDR 251.3 trillion. In 2012, foreign investment amounted to IDR 221 trillion, or 106.9 percent of the targeted IDR 206.8 trillion and domestic investment accounted for IDR 92.2 trillion or 120.2 percent of the targeted IDR 76.7 trillion. (Source: Indonesia Finance Today)

The Indonesian government will set up a Ministry of Finance Regulation to restrict debt-to-equity ratio of private companies, classifying it into two to three sectors. This policy is in anticipation of the increasing private debt to avoid the 1997-1998 crisis from reoccurring. The government’s measure to restrict private debt is seen as appropriate by some analysts, as crisis can be avoided, because private debt

Regional Market Focus

25 January 2013

7 of 16

can become uncontrollable due to the weakening of exchange rate. So far, private companies have been reporting their debts, but a more stringent rule is still needed. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka to produce specialty tea for China in joint venture. Sri Lanka 's investment promotion agency, Board of Investment has

approved a joint venture between the Elpitiya Plantations and Dianhong International Limited, a subsidiary of Yunnan Dianhong Group of China to produce a specialty tea for China. The Chinese specialty tea will be grown in the in the upcountry estates, operated by the Elpitiya Plantations. The joint venture is expected to attract more foreign investment in the sector to the country and expose more Sri Lankan tea products to the Chinese market. Yunnan Dianhong Group Company Limited of China (DGCL) is the biggest private shareholding Black Tea manufacturer in Greater China. (colombopage.com)

Australia Fortescue Metals Group chief executive Nev Power is predicting an average iron ore price this year of $US120 a tonne, underpinned by

the strong economic growth agenda of China's newly installed leadership. Mr Power also revealed that Fortescue would shortlist potential buyers of a minority stake in its Pilbara infrastructure assets by the end of next month, a sale that could reap billions of dollars for the miner as it seeks to reduce its high gearing levels. (Source: The Australian)

Underground coal gasification and mining company Linc Energy's shares soared 30 per cent yesterday following reports it could be sitting on $20 trillion worth of oil in South Australia's Arckaringa Basin. Linc managing director Peter Bond was quick to point out that the company had not put that value on its latest find, which it reported to the market on Wednesday, but said the figure would be significant. (Source: The Australian)

Atlas Iron said it shipped a record amount of iron ore in the second quarter of its fiscal year as the company pursues long-held targets to boost output. The iron-ore producer shipped 1.75 million metric tonnes in the quarter ended December 31, 10 per cent more than in the three months prior, Atlas said in a quarterly statement Friday. (Source: The Australian)

Regional Market Focus

25 January 2013

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79.95 +0.04% 300.42 -0.06%

112.72 +0.37% 1.850 +0.03%

1,667.95 +0.05% 13,825.33 +0.33%

557.21 -0.50% MSCI SEA 881.63 +0.20%

2,722.96 +0.54% 53.7

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

Jan-1

2

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

700

750

800

850

900

Jan-1

2

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

11,000

12,000

13,000

14,000

Jan-1

2

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

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

Jan-1

2

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

48

49

50

51

52

53

54

55

56

Jan-1

2

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

1,500

1,600

1,700

1,800

Jan-1

2

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

78

80

82

84

Jan-1

2

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

260

280

300

320

340

Jan-1

2

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

90

100

110

120

130

Jan-1

2

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

440

460

480

500

520

540

560

580

Jan-1

2

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

Regional Market Focus

25 January 2013

9 of 16

Valuations of Major Regional Markets

14.7 1.47

13.4 2.44

11.4 1.58

14.1 2.89

14.6 1.92

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

25 January 2013

10 of 16

Source: Bloomberg

World Index

JCI 0.05% 4,418.73

HSI -0.15% 23,598.90

KLCI 0.40% 1,635.25

NIKKEI 1.28% 10,620.87

KOSPI -0.80% 1,964.48

SET 0.69% 1,449.09

SHCOMP -0.79% 2,302.60

SENSEX -0.51% 19,923.78

ASX 0.47% 4,810.22

FTSE 100 1.09% 6,264.91

DOW 0.33% 13,825.33

S&P 500 0.00% 1,494.82

NASDAQ -0.74% 3,130.38 COLOMBO -0.09% 5,878.19

STI 0.53% 3,248.39

Regional Market Focus

25 January 2013

11 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior

1/25/2013 Kansas City Fed Manf. Activity Jan 1 -2 1/25/2013 Industrial Production MoM SA Dec -0.70% 1.90%

1/25/2013Revisions of the Kansas City

Manufacturing Activity1/25/2013 Industrial Production YoY Dec -4.80% 3.10%

1/25/2013 New Home Sales Dec 385K 377K 1/31/2013 Unemployment Rate (sa) 4Q P -- 1.90%

1/25/2013 New Home Sales MoM Dec 2.10% 4.40% 1/31/2013 Credit Card Bad Debts Dec -- 20.0M

1/28/2013 Durable Goods Orders Dec 1.80% 0.70% 1/31/2013 Credit Card Billings Dec -- 3412.9M

1/28/2013 Durables Ex Transportation Dec 1.00% 1.60% 1/31/2013 Bank Loans & Advances (YoY) Dec -- 15.90%

1/28/2013 Cap Goods Orders Nondef Ex Air Dec -1.50% 2.70% 1/31/2013 M1 Money Supply (YoY) Dec -- 5.30%

1/28/2013 Cap Goods Ship Nondef Ex Air Dec -- 1.80% 1/31/2013 M2 Money Supply (YoY) Dec -- 6.20%

1/28/2013 Pending Home Sales MoM Dec 0.50% 1.70% 2/4/2013 Electronics Sector Index Jan -- 46.6

1/28/2013 Pending Home Sales YoY Dec -- 8.90% 2/4/2013 Purchasing Managers Index Jan -- 48.6

1/28/2013 Dallas Fed Manf. Activity Jan -- 6.8 2/6/2013 Automobile COE Open Bid Cat A 6-Feb -- --

1/29/2013 S&P/CS 20 City MoM% SA Nov 0.70% 0.66% 2/6/2013 Automobile COE Open Bid Cat B 6-Feb -- --

1/29/2013 S&P/CS Composite-20 YoY Nov 5.60% 4.31% 2/6/2013 Automobile COE Open Bid Cat E 6-Feb -- --

1/29/2013 S&P/CaseShiller Home Price Ind Nov -- 146.08 2/7/2013 Foreign Reserves Jan -- $259.31B

1/29/2013 Consumer Confidence Jan 65 65.1 10-22 FEB GDP (annualized) (QoQ) 4Q F -- 1.80%

Date Statistic For Survey Prior Date Statistic For Survey Prior

21-25 JAN Total Car Sales Dec -- 148243 1/30/2013 Money Supply M3 - in HK$ (YoY) Dec -- 10.90%

1/25/2013 Foreign Reserves 18-Jan -- $182.3B 1/30/2013 Money Supply M2 - in HK$ (YoY) Dec -- 11.00%

1/25/2013 Forw ard Contracts 18-Jan -- $23.2B 1/30/2013 Money Supply M1 - in HK$ (YoY) Dec -- 15.30%

1/28/2013Mfg. Production Index ISIC NSA

(YoY)Dec -- 83.3 1/31/2013 Govt Mthly Budget Surp/Def HK$ Dec -- 24.8B

1/28/2013 Mfg. Production Index ISIC SA Dec -- 192.53 1/31/2013 Retail Sales - Value (YoY) Dec -- 9.50%

1/28/2013 Total Capacity Utilization ISIC Dec -- 68.6 1/31/2013 Retail Sales - Volume (YoY) Dec -- 8.10%

1/31/2013 Total Exports in US$ Million Dec -- $19332M 2/5/2013 Purchasing Managers Index Jan -- 51.7

1/31/2013 Total Exports YOY% Dec -- 27.10% 2/7/2013 Foreign Currency Reserves Jan -- $317.3B

1/31/2013 Total Imports in US$ Million Dec -- $18705M 2/19/2013 Composite Interest Rate Jan -- 0.32%

1/31/2013 Total Imports YOY% Dec -- 24.10% 2/21/2013 Unemployment Rate SA Jan -- 3.30%

1/31/2013 Total Trade Balance Dec -- $627M 2/22/2013 CPI - Composite Index (YoY) Jan -- 3.70%

1/31/2013 Overall Balance in US$ Million Dec -- $1203M 2/25/2013 Exports YoY% Jan -- --

1/31/2013 Current Account Balance (USD) Dec -- $392M 2/25/2013 Imports YoY% Jan -- --

1/31/2013 Business Sentiment Index Dec -- 52 2/25/2013 Trade Balance Jan -- --

2/1/2013 Foreign Reserves 25-Jan -- -- 2/27/2013 Annual GDP 2012 -- --

US Singapore

Economic Announcement

Thailand Hong Kong

Source: Bloomberg

Source: BloombergSource: Bloomberg

Source: Bloomberg

Regional Market Focus

25 January 2013

12 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior

2/1/2013 Inflation NSA (MoM) Jan -- 0.54% 1/29/2013Bloomberg Jan. Sri Lanka

Economic Survey

2/1/2013 Inflation (YoY) Jan -- 4.30% 1/31/2013 CPI Moving Average (YoY) Jan -- 7.60%

2/1/2013 Exports (YoY) Dec -- -4.60% 1/31/2013 CPI (YoY) Jan -- 9.20%

2/1/2013 Total Imports (YoY) Dec -- 9.90% 05-20 FEB Exports YoY% Dec -- -6.60%

2/1/2013 Core Inflation (YoY) Jan -- 4.40% 05-20 FEB Imports YoY% Dec -- -8.40%

2/1/2013 Total Trade Balance Dec -- -$478M 2/15/2013 Repurchase Rate 15-Feb -- 7.50%

01-05 FEB Danareksa Consumer Confidence Jan -- 94.6 2/15/2013 Reverse Repo Rate 15-Feb -- 9.50%

01-11 FEB Consumer Confidence Index Jan -- 116.4 2/28/2013 CPI Moving Average (YoY) Feb -- --

01-15 FEB Annual GDP 2012 -- -- 2/28/2013 CPI (YoY) Feb -- --

01-11 FEB Money Supply - M1 (YoY) Dec -- 20.00% 05-20 MAR Exports YoY% Jan -- --

01-11 FEB Money Supply - M2 (YoY) Jan -- 17.40% 05-20 MAR Imports YoY% Jan -- --

04-07 FEB Foreign Reserves Jan -- $112.78B 3/15/2013 Repurchase Rate 15-Mar -- --

04-07 FEB Net Foreign Assets (IDR Tln) Jan -- 1056.08T 3/15/2013 Reverse Repo Rate 15-Mar -- --

05-07 FEB GDP Constant Price (YoY) 4Q -- 6.17% 15-28 MAR GDP (YoY) 4Q -- 4.80%

05-07 FEB GDP Constant Price (QoQ) 4Q -- 3.21% 3/28/2013 CPI Moving Average (YoY) Mar -- --

Date Statistic For Survey Prior

1/29/2013 Conference Board Leading Index Nov -- 0.20%

1/29/2013 NAB Business Conditions Dec -- -5

1/29/2013 NAB Business Confidence Dec -- -9

1/30/2013DEWR Internet Skilled Vacancies

MoMDec -- -3.50%

1/31/2013 HIA New Home Sales (MoM) Dec -- 4.70%

1/31/2013 Private Sector Credit MoM% Dec -- 0.00%

1/31/2013 Private Sector Credit YoY% Dec -- 3.50%

1/31/2013 Export price index (QoQ) 4Q -- -6.40%

1/31/2013 Import price index (QoQ) 4Q -- -2.40%

2/1/2013 AiG Performance of Mfg Index Jan -- 44.3

2/1/2013 RPData-Rismark House PX Actual Jan -- -0.30%

2/1/2013 Producer Price Index (QoQ) 4Q -- 0.60%

2/1/2013 Producer Price Index (YoY) 4Q -- 1.10%

2/1/2013 RBA Commodity Price Index Au Jan -- 89.2

2/1/2013 RBA Commodity Index SDR YoY% Jan -- -8.00%

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

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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