8/9/2019 Market Wrap 08 20 10 (MG) (2)

1/4

1

MARKET WRAP: WEEK ENDED

20 AUGUST 10Bursa Securities vs Public Mutuals performance*

20 Aug'10 13 Aug'10 % chng

FBM KLCI 1,395.02 1,360.15 +2.6

FBMS Shariah 9,214.94 9,103.74 +1.2

MSCI FEXJ# 452.97 449.29 +0.8

MSCI World# 282.69 284.58 -0.7Local Funds

PSF 0.6726 0.6612 +1.7

PGF 0.4908 0.4848 +1.2

PIX 0.7082 0.6926 +2.3

PIF 0.5513 0.5410 +1.9

PAGF 0.6812 0.6732 +1.2

PRSF 0.6010 0.5894 +2.0

PBF 0.7437 0.7410 +0.4

P SmallCap 0.9086 0.9027 +0.7

PEF 0.3199 0.3154 +1.4

PFSF 0.2396 0.2366 +1.3

PDSF 0.2736 0.2686 +1.9

PSSF 0.2933 0.2866 +2.3

PSA30F 0.3380 0.3316 +1.9

POGF 0.2630 0.2583 +1.8

PBBF 0.7984 0.7892 +1.2

PBGF 0.7736 0.7583 +2.0Local Islamic Funds

P Ittikal 0.8369 0.8273 +1.2

PIEF 0.3129 0.3091 +1.2

PIOF 0.3184 0.3175 +0.3

PIBF 0.2813 0.2794 +0.7

PIDF 0.3195 0.3154 +1.3PISSF 0.2806 0.2771 +1.3

PISTF 0.2809 0.2777 +1.2

PIOGF 0.2696 0.2666 +1.1

PISEF 0.3109 0.3072 +1.2

PBIEF 0.2593 0.2560 +1.3

Foreign Funds

PFES 0.2715 0.2711 +0.1

PRSEC 0.2395 0.2387 +0.3

PGSF 0.1838 0.1849 -0.6

PFEDF 0.2359 0.2340 +0.8

PFEBF 0.2050 0.2054 -0.2PGBF 0.2026 0.2029 -0.1

PCSF 0.1732 0.1737 -0.3

PFEPRF 0.2166 0.2146 +0.9

PSEASF 0.2583 0.2560 +0.9

PFECTF 0.2748 0.2742 +0.2

PCTF 0.2218 0.2233 -0.7PFETIF 0.3279 0.3256 +0.7

PNREF 0.2517 0.2557 -1.6

PAUEF 0.2367 0.2435 -2.8

PFA30F 0.2481 0.2457 +1.0

PBAEF 0.2584 0.2576 +0.3

PBADF 0.2525 0.2507 +0.7

PBEPEF 0.1771 0.1769 +0.1

PBCPEF 0.1629 0.1628 +0.1

PBCAEF 0.3178 0.3155 +0.7

PBCAUEF 0.2355 0.2376 -0.9

PBSGA30EF 0.2544 0.2558 -0.5PBAREIF 0.2412 0.2406 +0.2

PBADBF 0.2889 0.2955 -2.2

Foreign Islamic Funds

PAIF 0.2581 0.2580 +0.04

PIADF 0.2159 0.2154 +0.2

PIABF 0.2233 0.2234 -0.04

PCIF 0.1915 0.1911 +0.2

PIALEF 0.2470 0.2451 +0.8

PBIAEF 0.2059 0.2061 -0.1

PBIASSF 0.1794 0.1793 +0.1

Capital Protected Funds

PCPSPF 1.0813 1.0772 +0.4

PBCPDF 1.0418 1.0403 +0.1

PBCPRF 1.0655 1.0635 +0.2*Buying Price, # in USD

WEEKLY HIGHLIGHTS

Buoyant regional markets coupledwith Malaysias higher-than-expected2Q2010 GDP growth helped the FBMKLCI to register a gain of 2.6% to

close at a 30-month high of 1,395.0points for the week.

Regional markets were generally well-supported on expectations thateconomic growth for regionaldeveloping economies will remainresilient.

Looking ahead, the local market isanticipated to move in tandem withoverseas markets as investors continue

to monitor the outlook for globaleconomic activities.

STOCKMARKET COMMENTARY

Led by buying of selected blue chips, theFBM KLCI rose on the back of Malaysiasbetter-than-expected 2Q2010 GDP growthof 8.9% which was announced onWednesday. Sentiment was also lifted bythe rise in selected regional markets. TheFBM KLCI closed at 1,395.0 points toregister a gain of 2.6% for the week.

The average daily trading volumeincreased to 1.06 bil units from 0.83 bilunits while average trading value rose toRM1.6 bil from RM1.2 bil over the samepreceding period.

On Wall Street, the Dow remained well-supported early in the week on the back ofpositive 2Q2010 corporate earnings results

for selected companies. However, theDow retreated towards the end of the weekfollowing news that U.S. initial joblessclaims rose to a 9-month high of 500,000for the week ended 14th August 2010. TheDow fell by 0.9% to close at a 4-week lowof 10,214 points over week. Meanwhile,the Nasdaq rose by 0.3% to close at 2,180points over the week on gains of selectedtech stocks.

8/9/2019 Market Wrap 08 20 10 (MG) (2)

2/4

2

In the U.S., housing starts rebounded by1.7% month-on-month in July after fallingby 8.7% month-on-month in June.Meanwhile, the producer price index roseto 4.2% in July from 2.8% in June mainlydue to higher consumer goods prices whilecore producer prices index rose to 1.5%from 1.1% over the same period.

Expectations of sluggish economicactivities in the U.S. caused oil prices toregister a weekly decline of 2.6% to closeat a 6-week low of US$73.46/brl.

On the domestic front, Malaysiaregistered GDP growth of 8.9% in2Q2010 compared to 10.1% in 1Q2010 onthe back of slower export growth.However, 2Q2010 GDP came abovemarket expectations of 8.4% due to a pick-

up in consumer and investmentspending. For 1H2010, GDP registered agrowth of 9.5% compared to a decline of1.7% for the whole of 2009. For the wholeyear, GDP growth is projected at 7.1%.

On the demand side, consumer spendinggrowth accelerated to 7.9% in 2Q2010from 5.1% in 1Q2010 while investmentspending gained pace to 12.9% from 5.4%over the same period. However, exportgrowth moderated to 13.8% in 2Q2010

from 19.3% in 1Q2010 on lowerelectronics and commodity exports. On thesupply side, the manufacturing sectorgrowth slowed to 15.9% in 2Q2010 from17% in 1Q2010 on lower export demandwhile the services sector growth eased to7.3% from 8.5% over the same periodamidst slower growth of wholesale &retail trade and real estate sub-sectors.

Malaysias inflation rate rose to a 14-month high of 1.9% in July from 1.7% inJune following the governments reductionin subsidies for retail petrol and selectedfood products on 16th July.

The Ringgit climbed to a 13-year high ofRM3.129 on Thursday before closing atRM3.141 to register a weekly gain of0.9%. On a year-to-date basis, the Ringgitappreciated by 9.6% against thegreenback.

Looking ahead, the local market isanticipated to continue moving in tandemwith overseas markets as investorscontinue to monitor the recovery of globaleconomic activities and the normalisationof interest rates.

As at 20th August 2010, the local stockmarket is valued at a P/E of about 15.2xon 2011 earnings, which is lower than its

10-year average P/E ratio of 16.7x. Thelocal market is also supported by a grossdividend yield of 3.4%, which iscomparable to the 10-year average of3.8% and exceeds the 12-month fixeddeposit rate of 2.85%.

Other Markets Performance20 Aug'10 13 Aug'10 % chng

Dow Jones 10,214 10,303 -0.9

Nasdaq 2,180 2,173 +0.3

Nikkei 9,179 9,253 -0.8

SH Comp 2,642 2,607 +1.4

China*, H share 11,780 11,641 +1.2MSCI China 6,347 6,301 +0.7

Hong Kong 20,982 21,072 -0.4

Taiwan 7,927 7,892 +0.5

South Korea 1,776 1,746 +1.7

Singapore 2,936 2,940 -0.1

Thailand 894 862^ +3.7

Indonesia 3,118 3,053 +2.1* Hang Seng China Enterprise Index^ Index as at 11 Aug 10. Non Business day for 12 & 13 Aug 10

Bursa Securities Market Valuations^

20 Aug'10 13 Aug'10 10 yr ave*

FBM KLCI 1,395.02 1,360.15 -

PER'10(x) 18.18 17.76 16.73PER'11(x) 15.21 14.86 -

Price/NTA(x) 3.63 3.58 2.39

3mth InterBk 2.92% 2.91% 3.17%

12mth Fix Dep, % 2.85% 2.85% -*2000-2009 average

^PMB In-House Statistics

Malaysias Economic Snapshot

2008 2009 2010F

GDP growth, % 4.7 -1.7 7.1

Inflation, % 5.4 0.6 2.0F=forecast

Bursa Securities 10 year P/E Ratio

10

12

14

16

18

20

22

24

26

28

30

00 01 02 03 04 05 06 07 08 09 10

P/E

Ratio(x

Average: 16.7x

20 Aug '10

P/E on 2010 & 2011 earnings:

18.2x & 15.2x respectively

8/9/2019 Market Wrap 08 20 10 (MG) (2)

3/4

3

REGIONAL MARKET WRAP:

WEEK ENDED

20 AUGUST 10

Regional Markets Performance

20 Aug'10 13 Aug'10 % chng

FBM KLCI 1,395 1,360 +2.6

MSCI FEXJ# 453 449 +0.8

China*, H share 11,780 11,641 +1.2

SH Comp 2,642 2,607 +1.4

MSCI China 6,347 6,301 +0.7

Hong Kong 20,982 21,072 -0.4

Taiwan 7,927 7,892 +0.5

Nikkei 9,179 9,253 -0.8

South Korea 1,776 1,746 +1.7

Singapore 2,936 2,940 -0.1

Thailand 894 862^ +3.7

Indonesia 3,118 3,053 +2.1

Philippines 3,594 3,470 +3.6

Australia 4,431 4,460 -0.6# in USD * Hang Seng China Enterprise Index^ Index as at 11 Aug 10. Non Business day for 12 & 13 Aug 10

Regional Economies Snapshot

GDP Growth (%) 2008 2009 2010f

China 9.0 8.7 10.0

Indonesia 6.1 4.5 5.8

Singapore 1.4 -1.3 13.2

Thailand 2.5 -2.2 5.5

Philippines 3.8 0.9 5.0

Taiwan 0.1 -1.9 7.4

Hong Kong 2.4 -2.7 5.0

South Korea 2.3 0.2 5.9

Japan -1.2 -5.2 2.2

Australia 2.4 1.3 3.1Source : International Monetary Fund, f=consensus forecast

Regional Markets Valuations

ProspectiveP/E(x)^

EstimatedDividend

Yield (%)^

Australia 11.15 5.04

Taiwan 11.84 4.13

Thailand 11.06 3.88

Philippines 12.44 3.78

Hong Kong 11.64 3.70

Singapore 13.01 3.41

China H Shares 10.57 3.34

Indonesia 12.77 2.56

Shanghai Comp 13.04 2.42

Japan 14.67 1.98

South Korea 9.01 1.67Source: Bloomberg, 20 Aug10^ Based on next year estimate

MSCI AC Far-East Ex-Japan- P/E RATIO

5

8

11

14

17

20

23

26

1 9 8 8 1 9 9 2 1 9 9 6 2 0 0 0 2 0 0 4 2 0 0 8

PER

Average: 15.83

20 August '10 = 12.56x

FORTNIGHTLY

REGIONAL MARKETS

COMMENTARY

WEEKLY HIGHLIGHTS

Regional markets were generally well-supported on expectations thateconomic growth for regionaldeveloping economies will remain

resilient.

Economic activities in regionaleconomies continued to expand withTaiwans GDP growth sustained at12.5% in 2Q2010 from 13.7% in1Q2010.

Regional markets are anticipated tocontinue moving in tandem withglobal markets as investors monitorthe outlook for global economic

activities.

STOCKMARKET COMMENTARY

In North Asia, the China-related marketsremained well-supported on expectationsthat Chinas domestic economy willremain resilient despite a moderation inexport growth. The Hang Seng ChinaEnterprise Index and the ShanghaiComposite Index registered weekly gainsof 1.2% and 1.4% respectively while theTaiwan and Hong Kong markets remainedalmost unchanged over the week.

South-East Asian markets generallyoutperformed their North Asian peers withthe Thailand market rising by 3.7% on theback of positive rerating by brokers ofselected stocks. The Indonesia market wasup 2.1% over the same period.

Down under, the Australian market eased

by 0.6% as investors were cautious aheadof the outcome of Australias federalelections on 21st August.

8/9/2019 Market Wrap 08 20 10 (MG) (2)

4/4

4

Taiwans 2Q2010 GDP growth was sustained at 12.5% in 2Q2010 from 13.7% in 1Q2010amidst robust investment spending and export growth. For 1H2010, Taiwans GDP growthaccelerated to 13.1% from a decline of 1.9% in 2009 on the back of a rebound ininvestment spending and export growth.

Japans 2Q2010 GDP growth eased to 1.9% from 4.4% in 1Q2010 on slower consumerspending and net export growth. For 1H2010, Japans GDP growth rebounded by 5.9%versus a decline of 5.2% in 2009 on higher consumer spending and export growth.

As at 20th August 2010, the valuations of regional markets, as proxied by the MSCI FarEast ex-Japan Index, is at a P/E of 12.6x on 2010 earnings, which is 20.7% lower than its22-year average P/E ratio of 15.8x.

____________________________________________________________________

You are advised to read and understand the contents of the Master Prospectus of Public Series of Funds dated

30th April 2010 and expires on 29th April 2011, Master Prospectus of Public Series of Shariah-Based Funds

dated 30th

April 2010 and expires on 29th

April 2011, Master Prospectus of PB Series of Funds dated 30th

April 2010 and expires on 29th April 2011, Information Memorandum of PB Cash Plus Fund and PB Islamic

Cash Plus Fund dated 1st

March 2010, Prospectus of PB Capital Protected Dragon Fund dated 24th

March

2008 and expires on 7th May 2008, Prospectus of Public Capital Protected Select Portfolio Fund dated 29 th

July 2008 and expires on 11

th

September 2008, Prospectus of PB Capital Protected Resources Fund dated20th

August 2008 and expires 3rd

October 2008, Information Memorandum of PBB MTN Fund 1 dated 10th

November 2009 and expires on 24th December 2009, Prospectus of PB Singapore Advantage-30 Equity Fund

& PB Infrastructure Bond Fund dated 11 May 2010 and expires on 29 April 2011 and Public Optimal Growth

Fund dated 8th June 2010 and expires on 29th April 2011 before investing. These prospectus have been

registered with the Securities Commission who takes no responsibility for their contents, and neither should

their registration be interpreted to mean that the Commission recommends the investment.

You should note that there are fees and charges involved; and that the prices of units and distribution payable,

if any, may go down as well as up. Applications to purchase must come in the form of a duly completed

application form referred to in and accompanying the prospectus. A copy of the prospectus can be obtained

from your attending agent, corporate representative or nearest Public Mutual Office.

Past performance should not be taken as an indication of future performance.

Public Mutual Berhad (23419-A)Block B, Sri Damansara Business Park, Persiaran Industri, Bandar Sri Damansara, 52200 Kuala Lumpur, Malaysia. P.O. Box 10045, 50700 Kuala LumpurTel: 03 62796800 Fax: 603 62779800 Website:http://www publicmutual com my