8/4/2019 Market Wrap 09 09 11 (MG)1

1/41

MARKET WRAP: WEEK ENDED

9 SEPTEMBER11

Bursa Securities vs Public Mutuals performance*

9 Sept'11 2 Sept'11 % chng

FBM KLCI 1,469.12 1,474.09 -0.3

FBMS Shariah 9,768.93 9,770.87 - 0.02

MSCI FEXJ# 469.88 480.87 -2.3

MSCI World#

291.98 302.19 -3.4

Local Funds

PSF 0.6169 0.6190 -0.3

PGF 0.4775 0.4851 -1.6

PIX 0.7040 0.7034 +0.1

PIF 0.5654 0.5658 -0.1

PAGF 0.6384 0.6492 -1.7

PRSF 0.6032 0.6058 -0.4

PBF 0.6733 0.6853 -1.8

P SmallCap 0.6745 0.6824 -1.2

PEF 0.2973 0.3019 -1.5

PFSF 0.2565 0.2569 -0.2

PDSF 0.2707 0.2710 -0.1

PSSF 0.2928 0.2931 -0.1

PSA30F 0.3207 0.3218 -0.3

POGF 0.2655 0.2655 0.00

PBBF 0.7876 0.7863 +0.2

PBGF 0.7659 0.7679 -0.3

Local Islamic Funds

P Ittikal 0.8172 0.8284 -1.4PIEF 0.3215 0.3215 0.00

PIOF 0.2900 0.2919 -0.7

PIBF 0.2793 0.2793 0.0

PIDF 0.3388 0.3395 -0.2

PISSF 0.2924 0.2923 +0.03

PISTF 0.2879 0.2895 -0.6

PIOGF 0.2728 0.2734 -0.2

PISEF 0.3465 0.3458 +0.2

PIA40GF 0.2499 0.2490 +0.4

PITGF 0.2501 0.2497 +0.2

PBIEF 0.2362 0.2362 0.00

Foreign Funds

PFES 0.2291 0.2383 -3.9

PRSEC 0.2000 0.2078 -3.8

PGSF 0.1680 0.1696 -0.9

PFEDF 0.2276 0.2304 -1.2

PFEBF 0.2033 0.2046 -0.6

PGBF 0.1975 0.1987 -0.6PCSF 0.1669 0.1715 -2.7

PFEPRF 0.2287 0.2279 +0.4

PSEASF 0.2698 0.2695 +0.1

PFECTF 0.2541 0.2542 -0.04

PCTF 0.2056 0.2069 -0.6

PFETIF 0.2882 0.2967 -2.9

PNREF 0.2341 0.2418 -3.2

PAUEF 0.2463 0.2480 -0.7

PFA30F 0.2390 0.2416 -1.1

PINDOSF 0.2697 0.2624^ +2.8

PBAEF 0.2047 0.2130 -3.9

PBADF 0.2611 0.2606 +0.2

PBEPEF 0.1845 0.1877 -1.7

PBCPEF 0.1570 0.1587 -1.1

PBCAEF 0.2356 0.2428 -3.0

PBCAUEF 0.1889 0.1964 -3.8

PBSGA30EF 0.2453 0.2468 -0.6

PBAPENTF 0.2199 0.2230 -1.4PBAREIF 0.2560 0.2551 +0.4

PBADBF 0.3086 0.3101 -0.5

PBINDOBF 0.2609 0.2554^ +2.1

PSGEF 0.2381 0.2394 -0.5

Foreign Islamic Funds

PAIF 0.2496 0.2514 -0.7

PIADF 0.2229 0.2227 +0.1

PIABF 0.2092 0.2098 -0.3

PCIF 0.1767 0.1803 -2.0

PIALEF 0.2337 0.2360 -1.0

PBIAEF 0.1992 0.2006 -0.7

PBIASSF 0.1621 0.1630 -0.6

Capital Protected Funds

PCPSPF 1.1161 1.1168 -0.1

PBCPRF 1.1098 1.1105 -0.1

*Buying Price, # in USD^NAV as at 26 Aug11. Non Business day from 29 Aug11 to 2 Sept11.

Adjusted for distribution

WEEKLY HIGHLIGHTS

The FBM KLCI moved in a tradingrange and closed at 1,469.1 points toregister a loss of 0.3% for the week.

Most regional markets sustained losses

on continued uncertainty in policymakers ability to resolve the Europeansovereign debt crisis.

Looking ahead, the performance of thelocal and regional markets will dependon the developments of the sovereigndebt issues in the U.S. and Europeanmarkets.

STOCKMARKET COMMENTARY

Declines in global and regional marketscaused the FBM KLCI Index to move in atrading range for the week. The indexsubsequently closed at 1,469.1 points toregister a loss of 0.3% for the week.

Average daily trading volume increased to0.8bil from 0.6bil over the week while dailyturnover in value terms decreased toRM1.4bil from RM1.5bil over the week.

Most regional markets sustained losses oncontinued uncertainty in policy makersability to resolve the European sovereigndebt crisis. North Asian markets such asHong Kong, China H shares, Japan andSouth Korea registered losses ranging

between 1.7% to 2.9%.

On Wall Street, the Dow declined asinvestors remained sidelined on the back ofcontinued weakness in the labour market.The Dow closed at 10,992 points to register

a loss of 2.2% for the week. The Nasdaqwas down by 0.5% to 2,468 points over thesame period.

8/4/2019 Market Wrap 09 09 11 (MG)1

2/42

In the U.S., macroeconomic variables weremixed with export growth strengthening to15.1% in July from 13.5% in June on highershipments of capital goods and automobiles.Meanwhile, import growth increased to13.6% from 12.7% over the same period.As imports grew by a wider margin thanexports, the trade deficit for the first sevenmonths of 2011 rose by 13.0% to US$329.8

billion compared to US$291.7 billion in the

same period last year. However, the initial jobless claims remained high at 414,000claims for the week ended 2nd September2011 compared to 412,000 jobless claims inthe preceding week.

On the regional front, Chinas inflation rateedged down to 6.2% in August compared to6.5% in July on lower food prices, whicheased to 13.4% from 14.8% over the same

period. Looking ahead, Chinas inflationrate is expected to ease to 5.1% in 2H2011

from 5.4% in 1H2011.

Oil prices registered a weekly gain of 0.9%and closed at US$87.24/brl following adecrease in U.S. oil inventories.

On the local front, Malaysias exportgrowth slowed to 7.1% in July from 9.6% inJune mainly due to a decline in exports ofelectrical and electronics products.Meanwhile, import growth eased to 2.9%from 6.9% over the same period. As imports

outpaced exports, the cumulative tradesurplus for the first seven months of 2011narrowed by 1.1% to RM68.6 billioncompared to RM69.4 billion in the same

period last year.

Industrial production contracted by 0.6% inJuly compared to an increase of 1.3% inJune due to a decline in mining output and aslowdown in manufacturing activities.

On a weekly basis, the Ringgit weakened by1.6% against the US$ to close at RM3.018while on a-year-to-date basis the Ringgitstrengthened by 1.4% against thegreenback.

Looking ahead, investors will continue tomonitor the outlook for the U.S. and globaleconomies in the year ahead. In developedmarkets, fiscal stimulus policies to boostgrowth will be constrained by the need tocontain elevated fiscal deficits. Meanwhile,

low interest rate policies are less effective in aperiod of household deleveraging.

At the KLCIs closing level of 1,469.12 points on 9th September 2011, the localstock market is trading at a prospective P/Eof 15.9x on 2011 earnings, which is belowthe markets 10-year average P/E ratio of16.7x. The local market is supported by agross dividend yield of about 3.9% which is

higher than the 10-year average of 3.6% andexceeds the 12-month fixed deposit rate of3.15%.

Other Markets Performance

9 Sept'11 2 Sept'11 % chng

Dow Jones 10,992 11,240 -2.2

Nasdaq 2,468 2,480 -0.5

TOPIX 756 770 -1.8

SH Comp 2,498 2,528 -1.2

China*, H share 10,469 10,664 -1.8

MSCI China 5,815 5,964 -2.5

Hong Kong 19,867 20,213 -1.7

Taiwan 7,611 7,757 -1.9South Korea 1,813 1,868 -2.9

Singapore 2,825 2,843 -0.6

Thailand 1,062 1,065 -0.3

Indonesia 3,999 3,842^ +4.1* Hang Seng China Enterprises Index^ Index as at 26 Aug11

Bursa Securities Market Valuations^

9 Sept'11 2 Sept'11 10 yr ave*

FBM KLCI 1,469.12 1,474.09 -

PER'11(x) 15.90 15.96 16.66

Price/NTA(x) 4.43 4.36 2.52

3mth InterBk 3.27% 3.27% 3.12%12mth Fix Dep, % 3.15% 3.15% -*2001-2010 average

^PMB In-House Statistics

Malaysias Economic Snapshot

2009 2010 2011F

GDP growth, % -1.7 7.2 4.7

Inflation, % 0.6 1.7 3.5F=forecast

Bursa Securities 10 year P/E Ratio

10

15

20

25

30

01 02 03 04 05 06 07 08 09 10 11

P/E

Ratio(x

Average: 16.7x

9 Sept '11

P/E on 2011 earnings: 15.9x

8/4/2019 Market Wrap 09 09 11 (MG)1

3/43

BOND MARKET REVIEW:FORTNIGHT ENDED

9 SEPTEMBER11Public Mutual's Bond Funds Performance

9 Sept'11 26 Aug'11 % chng

P BOND 0.9854 0.9804 +0.5

PI BOND 1.0869 1.0830 +0.4

PIN BOND 1.0229 1.0201 +0.3

PEBF 1.0376 1.0335 +0.4

PSBF 1.0240 1.0208 +0.3

PIEBF 1.0984 1.0929 +0.5

PISBF 1.0208 1.0179 +0.3

PIINCOME 1.0341 1.0318 +0.2

PBFI 1.0686 1.0634 +0.5

PBIBF 1.1605 1.1562 +0.4

PBBMTN1 1.0338 1.0290 +0.5

PBINFBF 1.0528 1.0500 +0.3

PIINFBF 1.0505 1.0467 +0.4

PSTBF 1.0525 1.0494 +0.3

PISTBF 1.0502 1.0470 +0.3

PSKF 1.0058 1.0019 +0.4

Public Mutual's Money Market Funds Performance

9 Sept'11 26 Aug'11 % chng

PMMF 1.0010 0.9999 +0.1

PIMMF 1.0152 1.0140 +0.1PBCMF 1.0080 1.0069 +0.1

PBCPF 1.0017 1.0006^^ +0.1

PBICMF 1.0041 1.0030 +0.1

PBICPF 1.0036 1.0024^^ +0.1^^ Adjusted for distribution.Change in Interest Rates & Bond Yields

9 Sept'11 26 Aug'11 Chng*

3 Month Interest Rates

KLIBOR 3.27 3.27 -

U.S. T Bill 0.01 -0.01 +2.0

3 Year

'AAA'Corp. 3.79 3.87 -8.0

MGS 3.02 3.15 -13.0

U.S. T Note 0.29 0.32 -3.05 Year

AAA'Corp. 4.05 4.13 -8.0

MGS 3.26 3.38 -12.0

U.S. T Note 0.80 0.94 -14.0

10 Year

'AAA'Corp. 4.57 4.65 -8.0

MGS 3.57 3.64 -7.0

U.S. T Bond 1.92 2.19 -27.0*in basis points

MGS Yield

2

4

6

Jan-

03

Sep-

03

May-

04

Jan-

05

Sep-

05

May-

06

Jan-

07

Sep-

07

May-

08

Jan-

09

Sep-

09

May-

10

Jan-

11

Sep-

11

3 Years M GS

10 Years MGS

US Treasury Bond Yield

1

2

3

4

5

6

Jan-

03

Sep-

03

May-

04

Jan-

05

Sep-

05

May-

06

Jan-

07

Sep-

07

May-

08

Jan-

09

Sep-

09

May-

10

Jan-

11

Sep-

11

10 Years US T Bond

BOND MARKET COMMENTARY

For the fortnight ended 9th September 2011,the U.S. Treasury market strengthened asrenewed concerns over the Eurozone debtcrisis boosted investors demand for safe-haven U.S. government bonds. The 10-yearTreasury yield fell by 27 basis points (bps) toa 49-year low of 1.92% over the fortnightwhile the 3 and 5-year Treasury yields fell

by 3 bps and 14 bps to 0.29% and 0.80%respectively over the same period.

The Malaysian Government Securities(MGS) market closed firmer as sentimentwas lifted by Bank Negaras decision to keepinterest rates unchanged at 3.00% on 8thSeptember 2011. The 3, 5 and 10-year MGSyields declined by between 7 bps and 13 bpsto 3.02%, 3.26% and 3.57% respectivelyover the fortnight.

The local corporate bond market generallystrengthened amidst strong buying interest.The 3, 5 and 10-year AAA corporate bondyields declined by 8 bps each to 3.79%,4.05% and 4.57% respectively over thefortnight.

In the money market, the spread of the 3-month Kuala Lumpur Interbank Offer Rate(KLIBOR) over the yield of the 3-monthU.S. Treasury bill narrowed marginally to326 bps from 328 bps a fortnight ago as the

3-month U.S. Treasury bill increased by 2 bps to 0.01% while the 3-month KLIBORremained unchanged at 3.27% over the same

period.

Looking ahead, the U.S. Treasury bondprices may experience some volatility in themedium term due to renewed concerns overthe outlook for global economic conditionsand the stability of the U.S. dollar.

On the domestic front, the MGS market isexpected to remain supported amidstrenewed concerns over the economic growthin the near-term.

8/4/2019 Market Wrap 09 09 11 (MG)1

4/4

4

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

30th April 2011 and expires on 29th April 2012, Master Prospectus of Public Series of Shariah-Based Funds

dated 30th April 2011 and expires on 29th April 2012, Master Prospectus of PB Series of Funds dated 30 th

April 2011 and expires on 29th April 2012, Information Memorandum of PB Cash Plus Fund and PB Islamic

Cash Plus Fund dated 1stMarch 2010, Prospectus of Public Capital Protected Select Portfolio Fund dated

29th July 2008 and expires on 11th September 2008, Prospectus of PB Capital Protected Resources Fund

dated 20th August 2008 and expires on 3rdOctober 2008, Information Memorandum of PBB MTN Fund 1

dated 10th November 2009 and expires on 24th December 2009, Prospectus of Public Singapore Equity Funddated 7th June 2011 and expires on 29th April 2012 and Prospectus of Public Islamic Treasures Growth Fundand Public Sukuk Fund dated 19th July 2011 and expires on 29th April 2012. These prospectus have beenregistered with the Securities Commission who takes no responsibility for their contents, and neither shouldtheir 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 completedapplication 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, PersiaranIndustri, 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