MICA (P) 081/12/2011 Ref No: RM2012_0041 1 of 17

Phillip Securities Research Pte Ltd

Regional Market Focus

1 March 2012

Singapore STI: +0.82% to 2994 MSCI Asia Pac ex-Japan: +1.35% Euro Stoxx 50: -0.30% S&P500: -0.47% to 1365.7 Bernanke's half-yearly testimonial to Congress: economy growing at a modest

pace, employment gains good but not good enough to chew up the labour slack, flat income gains and depressed house prices hold back spending, Mfg rebounded on pent up car demand but faces external headwinds from Europe. Growth outlook is 2.2-2.7% for 2012 with inflation at 2%. Inflation expectations stable despite Oil posing upward pressure for now. Warns Congress that Monetary Policy is largely counter-cyclical in nature and that the long term health of the economy largely rest with decisions made in Congress. Fed Funds Rate reaffirmed Operation Twist and to stay at 0-25bp till late 2014, BUT NO MENTION OF QE3.

Could the Chairman have a change of heart? S&P500 sold on that fact of NO MENTION OF QE3. As we have said, the S&P500 rising on lower momentum, is technically not a great sign, so this we think could be the correction trigger. The STI's rallied yesterday to close the gap to near 3000, but failure to go above 3000, plus the omission of QE3 risks the pull back to continue.

The odd underlying story of equities facing a win-win scenario over the short/medium term has been weakened. Until yesterday we said that corrections will likely be used to add positions because: if economy 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', unless economic data outperforms strongly, markets we hazard will likely be in consolidation-correction mode. That is, the upside after such a period is less clear now, pending further policy moves.

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 2994.06 24.33 0.82P/E (x) 8.65P/Bv (x) 1.44

3.64Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

2/28 5/31 8/31 11/30 2/29

Source: Bloomberg

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Hong Kong Local stocks climbed. The HSI and HSCEI gained 111 points and 65 points to

21760 and 11826 respectively. Market volume was 708.78 billion. The benchmark index consolidated and closed over 10 SMA (21448). Due to the

decline in oil prices and news of Europe LTRO policy, the HSI soared with daily trading volume increasing by 13.6%

As expected, the government of China clarified that they have no intention to loosen the tight policy on the property industry. Consequently, related sectors recorded a significant decline. The banking sector recorded a rebound due to positive result announcements by HSBC and SCB with stock price increase of 1.2% to $70 and 0.4% to $200 respectively. We recommend that investors buy and hold these stocks with the positive results with a mid-long term horizon.

We peg resistance for the HSI at 21800 and support at 21400

Close +/- % +/-HSI INDEX 21680.08 111.35 0.52P/E (x) 10.06P/Bv (x) 1.56

3.15Dividend Yield

HANG SENG INDEX

16000

18000

20000

22000

24000

26000

2/28 5/31 8/31 11/30 2/29

Source: Bloomberg

Thailand Foreign buying drove the composite SET index up 14.64 points on heavy

turnover of Bt36.10bn. Foreign investors were net buyers of equities worth Bt3.45bn on Wed.

Heavy foreign buying of up to Bt3.45bn sent the SET index to the highest levels in nearly 15 years. Today, Thai stocks should also continue to get a boost from news about 530bn euros of ECB funds under three-year long-term refinancing operation (LTRO). In our view, endless rally in Thai stocks leaves the market vulnerable to possible bouts of profit taking. Today we expect the SET index to trade in a range of between 1153 and 1166 today.

In the near term, we advise investors to gradually book partial profits on rise towards resistance levels.

Today we peg resistance for the SET index at 1166-1174 and support at 1153-1147.

Close +/- % +/-SET INDEX 1160.90 14.64 1.28P/E (x) 15.67P/Bv (x) 0.69

3.73Dividend Yield

STOCK EXCH OF THAI INDEX

800850900950

10001050110011501200

2/28 5/31 8/31 11/30 2/29

Source: Bloomberg

Indonesia JCI rose yesterday, added 81.653 points or 2.09% to 3,985.210 levels. All

sectors ended higher than the previous day led by consumer goods sector which advanced 3.94%, followed by finance sector up 2.57%, and infrastructure sector which zoomed 2.40%. As many as 152 JCI’s constituents climbed, 78 shares fell, and 88 shares were unchanged yesterday, where the total turnover on regular market was IDR 5.118 trillion (USD 564.589 million)

We estimate the JCI would decline today and set 3,790 and 4,030 as its support and resistance respectively.

Close +/- % +/-JCI Index 3985.21 81.65 2.09P/E (x) 20.46P/Bv (x) 2.93

1.99Dividend Yield

JAKARTA COMPOSITE INDEX

30003200340036003800400042004400

2/28 5/31 8/31 11/30 2/29

Source: Bloomberg

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

succeeded to pervade in green territory till end of trading day. The main All Share Price index (ASPI) gained 26.42 points and closed the day at 5,458.09; the more liquid Milanka Price Index (MPI) gained 31.63 points to close at 4,751.06. The market capitalization stands at LKR 2.00Tn.

233 counters traded during the day to record a turnover of LKR 1.68Bn; out of which LKR 1.25Bn was generated through privately negotiated deals took place with JKH.N (LKR 264.5Mn), SPEN.N (LKR 143.7Mn) and SMOT.N (LKR 846Mn).

The day recorded 6,004 trades which resulted in 26Mn shares changing hands. The price losers outnumbered the price gainers by 121:92. The market recorded a net foreign outflow of LKR 805.7Mn.

Close +/- % +/-CSEALL Index 5458.09 26.42 0.49P/E (x) 12.12P/Bv (x) 1.94

2.19Dividend Yield

SRI LANKA COLOMBO ALL SH

45005000550060006500700075008000

2/28 5/31 8/31 11/30 2/29

Source: Bloomberg

Australia It ASX rose 0.8% yesterday as optimism surrounding Europe spurred investors.

WorleyParsons (WOR) and Harvey Norman (HVN) both disappointed the market with their results.

We are trading lower this morning after global equities were lower overnight. Fed Chairman Ben Bernanke dampened hopes of further quantitative easing and the AUD has fallen back below US$1.08.

Close +/- % +/-S&P/ASX 200 INDEX 4298.55 35.81 0.84P/E (x) 14.50P/Bv (x) 1.73

6.53Dividend Yield

STANDARD & POORS/ ASX 200 INDEX

3500

4000

4500

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5500

2/28 5/31 8/31 11/30 2/29

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Singapore Ho Bee – Company Results Recommendation: Neutral Previous close: S$1.34 Fair value: S$1.38 Lower FY11 earnings due to lower revenue recognition from development properties See challenging times ahead for high-end residential sales Maintain Neutral with target price lowered to S$1.38 Foreland Fabrictech Limited – Results Recommendation: Accumulate Previous close: $0.109 Target price: $0.13 Record year of revenue and profit Future growth dependent on capacity expansion Downgrade to accumulate with target price $0.13 Parkway Life REIT – Update Recommendation: Accumulate Previous close: S$1.790 Fair value: S$1.950 Acquisition of three Japan nursing homes at S$53.3mn and Malaysia medical centre at S$6.45mn DPU accretive resulting from debt and cash financing Maintain ACCUMULATE with a higher target price of $1.950 Banking Sector Singapore’s total DBU loans outstanding registered y-y growth of 28.4% to S$422.1 billion in Jan 2012. Business loans and Consumer

loans reported growth of 37.4% y-y and 18.1% y-y respectively. M-m, loans growth in January was lower as compared to December. Total loans grew 0.4%, led by the growth of Consumer loans by

1.0%. Business loans stayed largely similar to prior month. We maintain our negative outlook on Singapore Banking Sector. Hong Kong Winsway Coking Coal Recommendation: Buy Previous close: $2.20 Fair value: $3.00 China’s net import volume of raw coal has climbed up rapidly since 2009, and coal importer will face a sound challenge. With the

advantages on natural resource and convenient location, Winsway’s Mongolian coal business can still expand largely. The core competitiveness of Winsway lies in its integrated distribution platforms and logistics facilities, which let it enjoy the advantages

on both the coal processing and the transportation. Moreover, it can make considerable price differences. Therefore, the earning capability on the Mongolian coal business is strong, and the gross margin can normally maintain above 30%.

Its coal processing capacity can increase from 7.2 million tons in 2010 to over 30 million tons in 2012. What’s more, its logistics capacity including railway loading system and coal ports will be upgraded to 60 million tons. In this aspect, we think the Company can still realize jumpy growth in future. What’s more, the acquired coal field in Canada can add the supply of seaborne coal and improve the quality of the Company’s products.

We expect Winsway will realize net profit of HK$1.226 billion and HK$1.766 billion for 2011 and 2012 respectively, reaping a growth of 32% and 44%, converted to EPS HK$0.32 and HK$0.46. We give it 6.5-times 2012EPS, the 12-month target price is to be HK$3.00, so we initiate it Buy rating.

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Thailand Supalai – Company Results Recommendation: Neutral Previous close: Bt14.10 Fair value: Bt13.40 4QCY11 earnings turned out to be slightly better than expected. CY2012 revenue is forecasted to increase modestly by 4%, while net profit will increase by a higher percentage of 11% supported by tax

rate reduction. We rate ‘NEUTRAL’ on the shares whose price target is at Bt13.40/share.

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Market News

US The US economy grew a bit faster than initially thought in the fourth quarter on slightly firmer consumer and business spending, which

could help to allay fears of a sharp slowdown in growth in early 2012. Gross domestic product expanded at a 3 per cent annual rate, the quickest pace since the second quarter of 2010, the Commerce Department said in its second estimate. That was a step up from the 2.8 per cent pace it reported in January. Economists polled by Reuters had expected fourth-quarter GDP would be unrevised at a 2.8 per cent pace. The economy grew at a 1.8 per cent pace in the third quarter. (Source: BT Online)

US growth this year will stay close to or slightly above the sluggish 2.25 per cent pace of the second half of 2011, Federal Reserve chairman Ben Bernanke said on Wednesday. He also said that the recent rise in oil prices will push up inflation 'temporarily', but that over the longer term, 'inflation will remain subdued'. (Source: BT Online)

US banks increased lending for commercial real estate and apartment buildings for the first time in nearly two years in the fourth quarter of 2011, another sign of confidence in the improving US economy. Banks expanded their loans for apartment buildings and commercial real by US$5 billion in the fourth quarter, with the bigger, healthier banks leading the way, according to a report released on Wednesday by Chandan Economics, which tracks real estate bank lending. It was the first expansion of commercial real estate loans since the first quarter 2010, the report said. (Source: BT Online)

The US economic recovery is 'frustratingly slow' and it could take four to five years to ratchet the unemployment rate down to about 6 per cent, from more than 8 per cent now, a top Federal Reserve official said. The recovery is held back by the housing market and Europe's debt crisis among other headwinds, but monetary policy is now appropriately positioned to achieve this 'maximum employment' level eventually, said Cleveland Fed President Sandra Pianalto on Tuesday. (Source: BT Online)

Singapore Total bank lending in Singapore rose 0.4 per cent in January from December, central bank data showed on Wednesday. Bank lending in

the city-state was S$422.1 billion (US$337.06 billion) last month, up from S$420.4 billion in December. Bank lending rose 28 percent in January from a year earlier. Housing loans to consumers rose to S$132.7 billion in January from S$131.1 billion in December. (Source: BT Online)

Airlines operating at Changi Airport's Budget Terminal will soon be operating from the airport's main terminals as the Budget Terminal will close to make way for a new terminal, Channel News Asia reported. The Budget Terminal is currently home to low-cost carriers (LCCs) such as Tiger Airways, Firefly, Berjaya Air, Southeast Asian Airlines (SEAIR) and Cebu Pacific. (Source: BT Online)

Greater China Region Overnight inter-bank interest rates fell below 3%, the liquidity is expected to improve gradually. Following the Monday fall, the Shanghai

interbank interest rate (Shibor) fall further yesterday. The data shows that Shibor fall by 33.14 basis points to 2.6817%, below the 3% benchmark. 7 days Shibor rate rebounded by 0.83 basis points to 3.6533 percent; 14 days Shibor fall by 9.42 basis points to close at 4.3850%.. At the same day, the People’s Bank of China started a CNY 10 billion 28 repurchase operations recovery to reduce liquidity. (Source: dzzq.com.cn)

The People’s Bank of China restarted repurchase operation with an net return of liquidity of CNY 243 billion in February. In February, the People’s Bank of China did not issue any bills, but the implemented CNY720 billion repurchase operation. At the same time, there were CNY 183 billion of reverse repurchase matured, resulting a total reduction of liquidity of CNY255 billion in February. However, in February, the open market maturing funds came in CNY12 billion. Based on projections, the People’s Bank of China open market operations in February recorded an net return of funds of CNY 243 billion. The latest statistics from the open market this week shows that there will be CNY 2 billion bills to mature and no repurchase to mature. This is about the same level same last week. (Source: xinhuanet.com)

Development and Reform Commission: Price inflation this year will be significantly lower than last year. Zhou Wang Jun, Deputy Director of NDRC price department cited yesterday in an interview that price level is expected to be on a better trend his year and inflation will be significantly lower than last year. Recently, with the disappearance of the seasonality and temporary factors, the price of vegetables has fallen very sharply. And as the weather gets warmer, increase supply in vegetable will push the vegetable prices to decline further. (Source: stcn)

Thailand Foreign investors remained net buyers of Thai equities worth Bt3,450.75mn on Wed. (Source: Bisnews) The European Central Bank said 800 banks took 529.5bn euros at exceptionally low interest rates in its second three-year long-term

refinancing operation, or LTRO. The figures were slightly higher than market consensus of 500bn euros. (Source: Bisnews) Thailand’s economic recovery continued to gain traction in Jan 2012 driven by growing production and rising domestic demand, the Bank

of Thailand said in its monthly economic report. With global crude oil prices on the rise, inflation now became a cause for concern. (Source: Infoquest)

Toyota Motor Corporation, the world’s second largest automaker will invest Bt6bn in Thailand to increase the annual production capacity of the Corolla ZR’s petrol engines by 100,000 units to 840,000 units. (Source: Bangkok Post)

Indonesia The government will save IDR 22 trillion (USD 2.44 billion) from the total expenditure of ministries and institutions, and increase the State

Revenue and Expenditure Budget Revision to 2.2 percent from 1.5 percent of the Gross Domestic Product. The deficit of 2.2 percent excludes the deficit from the Regional Revenue and Expenditure Budget. Coordinating Minister for Economic Affairs, said that the

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change in Indonesian crude oil price (ICP) and other macro assumptions in the State Revenue and Expenditure Budget Revision pushed the government to sharpen the budget of ministries and institutions. It will cut unproductive spending in ministries and institutions, such as expenditure on official travels, office repairs and purchase of non-urgent office needs, such as air conditioners. The government will also raise infrastructure expenditure by coursing the remaining budget allocated for immediate needs. Around IDR 20 trillion of the IDR 24 trillion remaining budget will be allocated for infrastructure. Economic growth assumption was set at 6.7 percent, inflation at 5.3 percent, the rupiah exchange rate at IDR 8,800 against the US Dollar, 3-month Treasury Bill at six percent, ICP at USD 90 per US Dollar, and oil lifting of 950 thousand barrels per day in the 2012 State Revenue and Expenditure Budget. The government plans to revise growth to 6.5 percent. The government will conduct six breakthrough steps. The steps will accelerate the bidding process, the appointment of treasury officials, organization of technical guidelines to implement the Special Allocation Fund, the 2012 De-concentration Fund, completion of administrative support data, the organization of disbursement plans for utilization, and appointment of liaison officers for ministries and institutions. (Source: Indonesia Finance Today)

Indonesia targets to higher exports to non-traditional markets this year by 25 percent. These countries are in Africa and Latin America. In Africa, seven of ten countries in the region are posting strong economic growth. Minister of Trade realizes the plan is sort of rushed, but it is vital as demand from traditional markets is declining. Up to 50 African countries actually import Indonesian products indirectly and this is the reason export of to the region only account for 2.3 percent of the country’s total non-oil and gas products export. According to available data from the Central Statistics Agency, Indonesia’s export in 2011 reached USD 203.62 billion, which exceeds the government’s target of USD 200 billion and 29.05 percent higher than the figure realized in 2010. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka Milk Powder Importers to Sue the Government. Sri Lanka's milk powder importers announced that they will take legal action

against the Consumer Affairs Authority (CAA) unless permission is granted to increase the price of milk powder. The milk food importers demanded to increase the price of a 400 grams packet of milk powder by Rs. 15 last week and threatened to stop importing milk powder if the CAA does not permit a price revision by Wednesday (Today). However, the CAA had not responded to their request by Tuesday evening, the milk powder importers said. According to the law, the CAA has a time frame of 30 days to decide on requests made for price revisions. Milk powder importers say that they lose Rs. 37 per kilo of milk powder due to depreciation of rupee and due to increase of transport charges and packing costs etc. Sri Lanka imports 6,000 metric tons of milk powder per month, the importers say. (Colombopage)

Flour Mills in Sri Lanka also seek a Price Hike. Sri Lanka's two flour production companies Prima and Serendib have requested the Consumer Affairs Authority to raise flour prices. They have asked for a reduction of import levy on wheat grains to avert increase of wheat flour price or a price hike of Rs. 6 -7 if the import levy is not reduced. Sri Lanka Bakery Owners' Association increased the bread price last week following the increase of fuel price and electricity tariff. A price hike of flour could lead to another price hike in bakery goods, bakery owners say. (Lankapage)

Australia Furniture and white goods retailer Harvey Norman (HVN) has reported a 2.1% fall in net profit to A$129m for the half. The company said

it is suffering from a subdued trading environment (Source: The Australian) Engineering and services firm WorleyParsons (WOR) said yesterday that projects around the world are taking longer and costing more.

The company reported EBIT of A$248m for the half. (Source: The Australian Financial Review)

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Dollar Index 78.81 +0.72% Gold 1,696.85 +0.08%

Crude oil 107.07 +0.49% US Treasury 10yr Yield 1.971 +0.03%

DJI 12,952.07 -0.41% S&P 500 INDEX 1,365.68 -0.47%

SHCOMP 2,428.49 -0.95%

Source: Bloomberg

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Source: Bloomberg

Major World Indices

JCI 2.09% 3,985.21

HSI 0.52% 21,680.08

KLCI 0.83% 1,569.65

KOSPI 1.33% 2,030.25

NIKKEI 0.01% 9,723.24

SET 1.28% 1,160.90

SHCOMP -0.95% 2,428.49

SENSEX 0.12% 17,752.68

ASX 0.84% 4,298.55

FTSE 100 -0.95% 5,871.51

DOW -0.41% 12,952.07

S&P 500 -0.47% 1,365.68 NASDAQ -0.67% 2,966.89

COLOMBO 0.49% 5,458.09

STI 0.82% 2,994.06

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Top Value & VolumeSingaporeTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)NOBLE GROUP LTD 1.42 +3.27 +0.045 170,917 MDR LTD 0.01 -10.00 -0.001 161,926GENTING SINGAPOR 1.62 +1.57 +0.025 115,094 NOBLE GROUP LTD 1.42 +3.27 +0.045 121,724SINGAP TELECOMM 3.17 +1.28 +0.040 107,212 GOLDEN AGRI-RESOURCES LTD 0.73 +0.00 +0.000 89,276DBS GROUP HLDGS 14.20 +0.21 +0.030 93,559 GENTING SINGAPORE PLC 1.62 +1.57 +0.025 72,787WILMAR INTERNATI 5.11 +0.39 +0.020 89,911 ADVANCE SCT LTD 0.04 +5.71 +0.002 45,925KEPPEL CORP LTD 11.05 +0.55 +0.060 81,310 PSL HOLDINGS LTD 0.49 +4.26 +0.020 43,355OCBC BANK 8.98 +0.00 +0.000 75,022 ADDVALUE TECHNOLOGIES LTD 0.09 +9.41 +0.008 42,076UNITED OVERSEAS 18.05 +0.28 +0.050 73,499 YANGZIJIANG SHIPBUILDING 1.36 +0.74 +0.010 37,451GOLDEN AGRI-RESO 0.73 +0.00 +0.000 62,529 UNITED FIBER SYSTEM LTD 0.06 +0.00 +0.000 35,599OLAM INTERNATION 2.38 +0.85 +0.020 59,311 SINGAPORE TELECOM LTD 3.17 +1.28 +0.040 35,486

Hong KongTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)IND & COMM BK-H 5.69 +0.35 +0.02 1,811,716 IND & COMM BK-H 5.69 +0.35 +0.02 319,117CHINA CONST BA-H 6.52 +0.31 +0.02 1,673,318 BANK OF CHINA-H 3.38 +0.60 +0.02 261,907HSBC HLDGS PLC 70.00 +1.23 +0.85 1,621,300 AGRICULTURAL-H 3.86 +1.58 +0.06 261,522CHINA MOBILE 82.85 +1.04 +0.85 1,518,473 CHINA CONST BA-H 6.52 +0.31 +0.02 257,162AGRICULTURAL-H 3.86 +1.58 +0.06 1,003,644 GOME ELECTRICAL 2.37 +2.60 +0.06 239,759AIA GROUP LTD 29.40 -0.51 -0.15 992,250 LUMENA NEWMAT 2.17 +5.85 +0.12 224,767BANK OF CHINA-H 3.38 +0.60 +0.02 883,028 GCL-POLY ENERGY 2.67 +1.91 +0.05 169,192TENCENT HOLDINGS 202.00 +0.60 +1.20 859,353 CHINA SHIPPING-H 2.66 +0.76 +0.02 96,725CHINA LIFE INS-H 24.20 +1.04 +0.25 838,358 CHINA PETROLEU-H 8.89 +1.25 +0.11 73,330CNOOC LTD 17.80 +0.23 +0.04 824,750 EVERGRANDE REAL 4.93 -0.20 -0.01 73,329

ThailandTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)INDORAMA VENTURE 40.25 +5.23 +2.00 2,574,771 SANSIRI PUB CO 2.06 +5.64 +0.11 488,231SHIN CORP PCL 52.50 +4.48 +2.25 1,865,477 JASMINE INTL PCL 2.40 +1.69 +0.04 332,000PTT PCL 363.00 +0.83 +3.00 1,807,732 TRUE CORP PCL 3.34 +3.73 +0.12 226,331CP ALL PCL 66.25 +3.11 +2.00 1,407,642 TMB BANK PCL 1.74 +1.16 +0.02 188,475ADVANCED INFO 160.00 +1.91 +3.00 1,243,792 QUALITY HOUSES 1.82 +4.00 +0.07 128,240CHAROEN POK FOOD 36.25 +0.69 +0.25 1,206,941 BTS GROUP HOLDIN 0.74 +0.00 +0.00 109,648BANGKOK BANK PUB 181.00 +2.26 +4.00 1,305,769 G STEEL PCL 0.39 +2.63 +0.01 106,433SANSIRI PUB CO 2.06 +5.64 +0.11 980,233 NATURAL PARK PCL 0.03 +0.00 +0.00 99,830KASIKORNBANK PCL 146.50 +1.03 +1.50 938,860 RAIMON LAND PCL 1.45 +1.40 +0.02 90,145THANACHART CAPIT 28.50 +5.56 +1.50 927,014 M LINK ASIA CORP 1.78 +4.09 +0.07 86,299

IndonesiaTop 10 Value Last % Chg Chg Value ('mn) Top 10 Volume Last % Chg Chg Volume ('k)BANK NEGARA INDO 3,775 4.86 175 418,311 ENERGI MEGA PERS 190 -1.04 -2 300,049BANK MANDIRI 6,450 3.20 200 378,983 DARMA HENWA 96 -2.04 -2 191,092BANK RAKYAT INDO 6,900 3.76 250 370,333 BAKRIELAND DEV 128 -0.78 -1 183,726ASTRA INTERNATIO 70,850 1.50 1,050 308,732 LIPPO KARAWACI 700 1.45 10 115,100SEMEN GRESIK TBK 11,250 3.69 400 232,258 BANK NEGARA INDO 3,775 4.86 175 112,337GUDANG GARAM TBK 56,750 6.77 3,600 216,349 ALAM SUTERA REAL 570 1.79 10 97,578UNITED TRACTORS 29,000 2.65 750 184,594 TRADA MARITIME 910 2.25 20 92,215PERUSAHAAN GAS N 3,750 7.14 250 179,561 MODERNLAND REALT 400 0.00 0 76,699TELEKOMUNIKASI 7,050 1.44 100 154,159 ADARO ENERGY TBK 1,920 1.05 20 60,738BANK CENTRAL ASI 7,600 2.01 150 148,773 BANK MANDIRI 6,450 3.20 200 59,559

Sri LankaTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)SATHOSA MOTORS 227.30 3.32 7.30 848,696 SATHOSA MOTORS 227.30 3.32 7.30 3,612JOHN KEELLS HLDG 175.50 0.29 0.50 301,436 SMB LEASING - NV 0.50 25.00 0.10 2,234AITKEN SPENCE PL 115.00 -0.43 -0.50 165,455 PANASIAN POWER L 2.90 -3.33 -0.10 1,848CHEVRON LUBRICAN 175.00 2.10 3.60 38,241 JOHN KEELLS HLDG 175.50 0.29 0.50 1,722LION BREWERY CEY 199.90 1.06 2.10 25,176 AITKEN SPENCE PL 115.00 -0.43 -0.50 1,439COLOMBO LAND & D 44.80 2.99 1.30 20,136 PC HOUSE LTD 10.60 -2.75 -0.30 943CITRUS LEISURE P 33.50 4.36 1.40 19,185 BLUE DIAMONDS JE 6.30 3.28 0.20 782ACME PRINTING 24.50 -9.59 -2.60 16,772 ACME PRINTING 24.50 -9.59 -2.60 654REGNIS LANKA PLC 322.60 2.61 8.20 15,037 FREE LANKA CAPIT 2.20 4.76 0.10 610SWARNAMAHAL FINA 173.30 -2.15 -3.80 14,539 CITRUS LEISURE P 33.50 4.36 1.40 573Source: Bloomberg

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AustraliaTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)QBE INSURANCE 11.65 1.30 0.15 576,714 ONESTEEL LTD 1.06 -1.85 -0.02 166,352BHP BILLITON LTD 36.10 0.98 0.35 568,794 TELSTRA CORP LTD 3.30 1.23 0.04 51,351COMMONW BK AUSTR 49.43 0.57 0.28 305,103 QBE INSURANCE GROUP LTD 11.65 1.30 0.15 49,515WESTPAC BANKING 20.90 1.06 0.22 304,768 ANTISENSE THERAPEUTICS LTD 0.02 15.00 0.00 46,860RIO TINTO LTD 67.45 0.89 0.59 310,425 ALUMINA LTD 1.37 4.18 0.06 40,627NATL AUST BANK 23.67 1.63 0.38 235,626 COOPER ENERGY LTD 0.52 6.19 0.03 36,227AUST AND NZ BANK 21.95 0.32 0.07 207,562 GOODMAN FIELDER LTD 0.66 -3.65 -0.03 36,143ONESTEEL LTD 1.06 -1.85 -0.02 177,159 BLUESCOPE STEEL LTD 0.42 1.20 0.01 36,185TELSTRA CORP 3.30 1.23 0.04 169,076 AMP LTD 4.01 0.75 0.03 32,535WOODSIDE PETRO 37.24 0.92 0.34 163,557 BREVILLE GROUP LTD 3.50 -2.78 -0.10 28,657Source: Bloomberg

Commodities % Chg Chg Last Price of S$1 Price of US$1GOLD SPOT (US$/OZ) +0.08 +1.43 1,696.85 0.7444 1.0732SILVER SPOT (US$/OZ) -0.26 -0.09 34.68 0.7908 0.9899WTI Cushing Crude Oil Spot Price (US$/bbl) +0.49 +0.52 107.07 0.5996 1.3325

0.5019 1.59170.7988 1.0000

Commodities % Chg Chg Last 5.0280 6.2938Malaysian Rubber Board Standard (MYR/kg) -0.13 -1.50 1,115.00 6.1967 7.7564PALM OIL (MYR/Metric Tonne) +0.50 +16.00 3,208.00 64.8300 81.1500

893.9969 1118.9600Index % Chg Chg Last 2.4017 2.9943 DOLLAR INDEX SPOT +0.72 +0.57 78.81 24.3320 30.4600Source: Bloomberg

CANADIAN DOLLAREUROBRITISH POUND

CurrenciesAUSTRALIAN DOLLAR

Commodities & Currencies

JAPANESE YENKOREAN WONMALAYSIAN RINGGITTHAI BAHT

US DOLLARCHINA RENMINBIHONG KONG DOLLAR

Maturity Today Yesterday Last Week Last Month3 Months 0.06 0.06 0.07 0.036 Months 0.11 0.12 0.11 0.072 Years 0.29 0.29 0.29 0.213 Years 0.41 0.40 0.41 0.305 Years 0.84 0.82 0.86 0.7310 Years 1.97 1.94 2.00 1.8430 Years 3.08 3.07 3.15 3.00

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

US Treasury Yields

1.911.68

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

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Date Statistic For Survey Prior Date Statistic For Survey Prior3/1/2012 3/5/2012 Electronics Sector Index FEB - - 50.53/1/2012 RBC Consumer Outlook Index MAR - - 45.1 3/5/2012 Purchasing Managers Index FEB - - 48.73/1/2012 Personal Income JAN 0.4% 0.5% 3/7/2012 Automobile COE Open Bid Cat A 7-Mar - - - -3/1/2012 Personal Spending JAN 0.4% 0.0% 3/7/2012 Automobile COE Open Bid Cat B 7-Mar - - - -3/1/2012 PCE Deflator (YoY) JAN 2.3% 2.4% 3/7/2012 Automobile COE Open Bid Cat E 7-Mar - - - -3/1/2012 PCE Core (MoM) JAN 0.2% 0.2% 3/7/2012 Foreign Reserves FEB - - $245.49B3/1/2012 PCE Core (YoY) JAN 1.80% 1.80% 3/13/2012 Singapore Manpow er Survey 2Q - - 16%3/1/2012 Initial Jobless Claims 25-Feb 355K 351K 3/15/2012 Unemployment Rate (sa) 4Q F - - 2.0%3/1/2012 Continuing Claims 18-Feb 3415K 3392K 3/15/2012 Retail Sales Ex Auto (YoY) JAN - - 8.1%3/1/2012 Bloomberg Consumer Comfort 26-Feb - - -38.4 3/15/2012 Retail Sales (YoY) JAN - - 4.2%3/1/2012 Construction Spending MoM JAN 1.0% 1.5% 3/15/2012 Retail Sales (MoM) sa JAN - - -2.4%3/1/2012 ISM Manufacturing FEB 54.5 54.1 3/16/2012 Electronic Exports (YoY) FEB - - -10.9%3/1/2012 ISM Prices Paid FEB 58.0 55.5 3/16/2012 Non-oil Domestic Exports (YoY) FEB - - -2.1%01-02 MAR ICSC Chain Store Sales YoY FEB - - 4.8% 3/16/2012 Non-oil Domestic Exp SA (MoM) FEB - - 0.9%3/2/2012 Total Vehicle Sales FEB 14.00M 14.13M 3/21/2012 Automobile COE Open Bid Cat A 21-Mar - - - -

Date Statistic For Survey Prior Date Statistic For Survey Prior3/1/2012 Consumer Price Index (YoY) FEB 3.50% 3.38% 3/1/2012 Retail Sales - Value (YoY) JAN - - - -3/1/2012 Consumer Price Index NSA FEB 0.50% 0.39% 3/1/2012 Retail Sales - Volume (YoY) JAN - - - -3/1/2012 Core CPI (YoY) FEB 2.78% 2.75% 3/5/2012 Puchasing Managers Index FEB - - - -01-02 MAR Total Exports YOY% JAN - - -2.1% 3/7/2012 Foreign Currency Reserves FEB - - - -01-02 MAR Total Exports in US$ Million JAN - - $16856M 3/13/2012 Industrial Production (YoY) 4Q - - 0.2%01-02 MAR Total Imports YOY% JAN - - 19.6% 2/13/2012 Producer Price (YoY) 4Q - - 9.6%01-02 MAR Total Imports in US$ Million JAN - - $17094M 3/19/2012 Unemployment Rate SA FEB - - - -01-02 MAR Total Trade Balance JAN - - -$238M 3/19/2012 Composite Interest Rate FEB - - 0.49%01-02 MAR Current Account Balance (USD) JAN $1500M $1940M 3/22/2012 Bal of Paymts - Overall 4Q - - $23.56B01-02 MAR Overall Balance in US$ Million JAN - - -$1029M 3/22/2012 CPI - Composite Index (YoY) FEB - - 6.1%3/2/2012 Consumer Conf idence Economic FEB - - 64.0 3/27/2012 Exports YoY% FEB - - - -3/2/2012 Foreign Reserves 24-Feb - - $179.2B 3/27/2012 Imports YoY% FEB - - -10.5%3/2/2012 Forw ard Contracts 24-Feb - - $29.6B 3/27/2012 Trade Balance FEB - - -8.9B3/9/2012 Foreign Reserves 2-Mar - - - - 3/29/2012 Retail Sales - Value (YoY) FEB - - - -3/9/2012 Forw ard Contracts 2-Mar - - - - 3/29/2012 Retail Sales - Volume (YoY) FEB - - - -

US SingaporeEconomic Announcement

Source: Bloomberg Source: Bloomberg

Thailand Hong Kong

Source: Bloomberg Source: Bloomberg

Fed's Beige Book

Regional Market Focus 1 March 2012

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Date Statistic For Survey Prior Date Statistic For Survey Prior3/1/2012 Inf lation (YoY) FEB - - 3.65% 3/6/2012 Repurchase Rate 6-Mar - - 7.500%3/1/2012 Inf lation NSA (MoM) FEB - - 0.76% 3/6/2012 Reverse Repo Rate 6-Mar - - 9.000%3/1/2012 Core Inflation (YoY) FEB - - 4.29% 09-20 MAR Exports YoY% JAN - - - -3/1/2012 Exports (YoY) JAN - - 2.2% 09-20 MAR Imports YoY% JAN - - - -3/1/2012 Total Imports (YoY) JAN - - 24.3% 15-30 MAR GDP (YoY) 4Q - - 8.4%3/1/2012 Total Trade Balance JAN - - $859M 3/30/2012 CPI Moving Average (YoY) MAR - - - -3/1/2012 Consumer Conf idence Index FEB - - 119.2 3/30/2012 CPI (YoY) MAR - - - -01-07 MAR Danareksa Consumer FEB - - 91 10-20 APR Exports YoY% FEB - - - -05-08 MAR Foreign Reserves FEB - - $111.99B 10-20 APR Imports YoY% FEB - - - -05-08 MAR Net Foreign Assets (IDR Tln) FEB - - 980.78T 4/18/2012 Repurchase Rate 18-Apr - - - -07-13 MAR Money Supply - M1 (YoY) FEB - - 19.4% 4/18/2012 Reverse Repo Rate 18-Apr - - - -07-13 MAR Money Supply - M2 (YoY) FEB - - 16.4% 4/18/2012 Reverse Repo Rate 18-Apr - - - -3/8/2012 Bank Indonesia Reference Rate 8-Mar - - 5.75% 4/30/2012 CPI Moving Average (YoY) APR - - - -

10-20 MAR Total Local Auto Sales FEB - - 76435 10-21 MAY Exports YoY% MAR - - - -

10-20 MAR Total Motorcycle Sates FEB - - 645863 10-21 MAY Imports YoY% MAR - - - -

Date Statistic For Survey Prior3/1/2012 AiG Performance of Mfg Index FEB - - 51.6

3/1/2012 RPData-Rismark House PX Actual JAN - - -1.2%

3/1/2012 Building Approvals (MoM) JAN 2.00% -1.0%3/1/2012 Building Approvals (YoY) JAN -13.70% -24.5%3/1/2012 Private Capital Expenditure 4Q 3.80% 12.3%3/1/2012 RBA Commodity Price Index Au FEB - - 100.23/1/2012 RBA Commodity Index SDR FEB - - 6.0%

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 - - -0.6Source: 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

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

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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

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The Naruse Securities Co Ltd

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