MICA (P) 081/12/2011 Ref No: RM2012_0169 1 of 18

Regional Market Focus

Phillip Securities Research Pte Ltd

31 August 2012

Morning Market Commentary

- STI: -0.98% to 3011.8 - MSCI SE Asia: -0.88% to 805.7 - Hang Seng: -1.19% to 19552.9 - MSCI APxJ: -0.99% to 417.4 - Euro Stoxx 50: -1.25% to 2403.8 - S&P500: -0.78% to 1399.48 MARKET OUTLOOK: Today, all eyes (and ears) will be on Bernanke as he delivers his speech at the Fed Jackson Hole symposium (Fri, 10pm SGP time). Recall it is at this annual summit where Bernanke hinted of an impending QE2 (in 2010) and central bankers deliberate their response to the recent financial crisis (in 2007). The title of his speech today is "Monetary Policy Since the Crisis". Even if Bernanke choose to remain elusive tonight, we advise our readers to keep a lookout for his current assessment of the US economy (in view of new data releases since the Aug FOMC) as well as possible discussions on open-end monetary policy commitments. As to whether there will be QE3 in Sept, it is going to be a close call. We are of the view that while the US economy is still sluggish (no strong economic rebound), it is not sufficiently weak enough to warrant further QE in September (but inevitably by the end of this year). We opine that this “additional monetary accommodation” (alluded in the Aug FOMC minutes) might also that the form of an extension of the current late-2014 rate guidance. A day before Bernanke takes to the podium, the S&P500 retreated on Thursday to end a tad below the psychological 1400. Macro data were mixed. US real consumer spending rose while the four-week average of US jobless claims edged up (See Macro Data below). The recent summer rally has been largely buoyed by hopes for synchronised policy stimulus from major central banks. However, we caution that market might not be able to sustain its momentum against a still fragile macroeconomic backdrop. In fact, markets should be positioning for some disappointments and (risk assets, cyclicals) could sell off over the next few weeks, pending (i) Bernanke’s clarification on the Fed’s stance at the Jackson Hole symposium today as well as (ii) ECB’s ability to deliver (at its Sept 6 policy meeting). For the STI, we spotted a “breakaway gap” (to the downside) formed at yesterday’s close after the formation of “gravestone dojis” on the preceding two days. Now, let’s paint 2 scenarios: (i) If this gap gets filled within the next couple of candles, the breakout might not be valid, thus having little value in terms of trend direction. (ii) On the contrary, it this gap does not get filled over the next couple of days, odds of a valid breakout (to the downside) are valid, especially if Bernanke disappoints today. When support is broken, prices will likely fall further. Thus, it might be an opportune time to short Straits Times Index SGD5 CFD if the second scenario holds. The global economic trajectory is in a broad slowdown with August PMI portending lacklustre manufacturing performance in the months ahead. Asia's export data has been abysmal with a big disappointment from China - NE Asia economies are suffering due to China's slowdown. EZ is for all intents and purposes in recession and a program of austerity is going to hold it back this year and next. As for the US, core capex new orders are falling, below average employment and incomes and an impending fiscal cliff make us believe in a below consensus recovery. Notwithstanding some stabilisation in the housing prices, US consumers are also increasingly more pessimistic about the short-term outlook. Positive stimulus –if any- from central banks are likely to only result in tactical rallies for equities that cannot be sustained against this subdued macro backdrop. Our SG Sector Strategist likes defensives (SCI, Comfort, Singtel), and is sector overweight Aviation Services (SIAEC, STE, SATS), and the REITS. PORTFOLIO OUTLOOK: From a medium-longer term portfolio stance we are neutral at best for stocks till 1q13 as we think absolute returns could prove fleeting due to a global slowdown and fiscal uncertainty in the US. But within the stock space we prefer & Overweight ASEAN markets - the KLCI, JCI, SETI, PSEI, STI - to be relatively more resilient. For the first 4, domestic demand and pro-growth govt policy counteracts a weak external environment. As for the STI: +60% earnings exposure to ASEAN & Emerging Markets, high dividend yields in strong business moats, and the SGD's relative safe haven status, makes the STI an attractive buy in these yield starved times. For broad asset classes, we are still overweight Fixed Income (ETF tickers in brackets) over Stocks, Commodities, as we think macro headwinds remain considerable. In any case, as rates are repressed in the traditional safe havens of Treasuries (TLT: NYSE), Bunds, Gilts, SGS (A35:SGX), portfolios hard pressed for yield will likely have to explore beyond the traditional safe havens, thus within the bond space we're overweight dollar denominated EM sovereigns (EMB:NYSE), dollar denominated Asian Sovereigns & Corporates (N6M:SGX and O9P:SGX), and US Corporate Debt (VCLT:NYSE).

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Reports & Macro Data

REPORTS: Global Macro, Asset Strategy: 26 July Singapore Sector Strategy: 1 Aug Singapore Sector Reports: Banks / Transport / Telcos / Property / REITS / Thematic Regional Strategy: Malaysia, 31 Aug/ China, 23Aug/ Indon, 17 July / HK, 22 June / Thai, 18 June / S'pore, 8 June

MACRO DATA: In US, real consumer spending rose 0.4% m-m sa in July, reversing from the contraction of 0.1% in the preceding month. The 4-week moving average of initial jobless claims – a better gauge of broad trends as compared to the weekly data- rose by around 2000 to 370,000 for the week ending Aug 25. In Philippine, growth moderated from 6.3% y-y in 1Q12 to 5.9% in 2Q12, largely due to a decline in exports (particularly the pull back in electronics) amid weak external demand. Notwithstanding support from healthy domestic demand,Philippines is not immune from the global slowdown. Nonetheless, on account of a benign inflation environment, markets can take comfort that the central bank (Bangko Sentral ng Pilipinas) still has room to cut policy rates -from a record low of 3.75%- should external demand turn out to be weaker than expected. In Euro zone, economic confidence fell to 86.1 in Aug, the lowest reading over 3 years, after July’s reading of 87.9. Consumer confidence fell to -22.7 from July’s -20.2. Retail confidence fell to -13.5, from July’s -10.3. Manufacturer confidence fell from -15.3 from July’s -15.1. Construction confidence fell to -34.5, from July’s -31.5. Service confidence fell to -11.4 from July’s -10.4. All are worsening, as European consumers and executives are growing more pessimistic about the outlook as the economy edges closer toward a recession. ECB is working out a plan to purchase the government bonds of those indebt nations, in tandem with the region’s rescue fund, and will hold a meeting next week reviewing the region’s monetary policy. In Hong Kong, growth of retail sales value slumped to 3.8% y-y in July, the slowest in over at least past 8 months, which were usually 2 digits. Growth of retail sales volume rose by merely 1.3% y-y, compared to June’s 8.5%. This implies a significant slowdown in the city state’s consumption. Together with earlier reported underperforming trade statistics, we are concerning about Hong Kong’s growth outlook. The government has reduced their growth expectation from earlier 1-3% to 1-2%, tallying with our early estimate, but risk of further deepening slowdown still persists. In Japan, total sales fell by 1.9% m-m in July, after the 2.0% m-m decline in June. Retail sales fell by 1.5% in June, extending June’s 1.2% fall, while wholesale fell by 2.4%, extending 2.0% m-m fall in June. Motor vehicle sales, a sub category for retails sales fell by 5.4% m-m, after the 3.6% m-m gain in June, due to a winding down of government subsidies for car purchases. The underperforming reading for retail sales implies a sluggish private consumption, which makes up over 60% of the nation’s GDP. The Cabinet Office has downgraded its assessment of the domestic economy for the first time in 10 months on Aug. 28 after shipments to the European Union fell 25 percent in July from a year earlier. Going forward, we expect more loosening by Japanese government. In Australia, building approvals, an indicator for construction investment, slumped by 17.3% m-m in July, after a moderate 1.0% m-m fall in June. On y-y basis, approvals for total dwelling units fell by 10.5% in July, after June’s 13.0% y-y gain. The RBA is holding the benchmark lending rate at 3.5% and standing ready for further rate cuts if the economy slows.

Source: Phillip Securities Research Pte Ltd

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Singapore The STI declined 0.98% to close at 3,011. Market volume was 1.2 billion shares

with value of $1.1 billion. There were 110 gainers vs 288 decliners. The banking and commodities sectors led losses. UOB (-3.03%), DBS (-1.03%),

OCBC (-0.33%). Wilmar (-1.57%) and Noble Grp (-2.44%). As we had expected, market is in a cautious mood and investors are selling off

ahead of the much anticipated US Fed meeting later tonight. We expect Ben Bernanke to take a non-committal stance which will be open to interpretation. Market likely to sell-off and regain footing later.

Close +/- % +/-FSSTI 3011.82 -29.75 -0.98P/E (x) 12.18P/Bv (x) 1.37

3.10Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

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

Source: Bloomberg

Thailand The SET index lost 5.61 points on Thu in line with regional bourses on dimming

hopes for a new round of stimulus from the US Federal Reserve. Correction was seen in big-cap bank stocks. Trading turnover was light at a mere Bt26.4bn. Foreign investors remained net sellers of Thai equities worth Bt1,204.38mn on Thu.

Thai stocks slumped for a second straight day on Thu but late market gains helped pare some earlier losses and set the stage for a short-term rebound today. Investors are still eagerly awaiting a key speech by US Federal Reserve Chairman Ben Bernanke in Jackson Hole, Wyoming today but expectations are also dimming that the Fed chief will offer any signal about the timing of another round of bond purchases, causing the momentum to drive a strong market rally to be weak. After the Fed chief’s much-awaited speech, we believe investors will turn their attention to the European Central Bank’s meeting next week. Foreign investors also remained on the selling side in the Thai stock market and held massive net short positions of up to 3,275 contracts in futures yesterday. Under this circumstance, we stick to our view that there is more risk to the downside for Thai stocks.

In our view, we believe any intraday rebound will only be short-lived as long as the SET index is unable to break above 10-day EMA resistance around 1226. For short-term strategy, we continue to advise investors to book profits and buy back around 1190 +/- to bet on a rebound.

Today we peg resistance for the SET index at 1217-1226 and support at 1207-1194.

Close +/- % +/-SET INDEX 1214.55 -5.61 -0.46P/E (x) 17.15P/Bv (x) 2.12

3.79Dividend Yield

STOCK EXCH OF THAI INDEX

800

900

1000

1100

1200

1300

1400

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

Source: Bloomberg

Indonesia

Composite index of Indonesian stocks plunged quite significantly Thursday (30/08), trailing broad declines on Asian markets as commodity prices fell and ahead of economic policy symposium where speech from US Federal Reserve Chairman Ben Bernanke is anticipated. The JCI fell 67.587 points or 1.65% to 4,025.583, with all sectors closed in negative territory. Miscellaneous industry led the broad decline, with the sector’s index lost 2.66%. Basic industry sector and financial sector each fell 2.56% and 1.97%. LQ 45, the index trailing Indonesia’s blue-chip shares, off 13.475 points or 1.92% to 688.749. For every stock that advanced, more than four declined Thursday on the Indonesia stock exchange, where 2.993 billion shares worth IDR 3.433 trillion traded on the regular board. Foreign market participants accumulated net sales worth IDR 630.04 billion.

The JCI will likely to sideways today. We expect the composite index to trade with support at 3,978 and resistance at 4,065.

Close +/- % +/-JCI Index 4025.58 -67.59 -1.65P/E (x) 0.98P/Bv (x) 2.70

2.22Dividend Yield

JAKARTA COMPOSITE INDEX

3000

3200

3400

3600

3800

4000

4200

4400

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

Source: Bloomberg

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Sri Lanka The market pursued its positive momentum throughout the week to reach its 4

month high on Thursday, recording the index above 5,100 points. All three indices recorded considerably impressive appreciation throughout the shorter last week of August. ASPI gained 167.31 points (3.34%) during the week to closed at 5,180.15, followed by MPI gained 175.78 points or 3.79% to closed at 4,811.99. SP SL20 Index gained 49.34 point 1.74% to stay at 2,877.88 at the end of the week.

The total turnover increased by 18.67% to LKR 4.52Bn amidst the high

performance of the market throughout the week. The weekly turnover consisted of foreign purchases that accounted LKR 231.6Mn rupees against foreign sales of LKR 144.5Mn, resulting in a net foreign Inflow of LKR 87.1Mn.The market’s PER(X) and PBV(X) stood at 14.02 and 1.84 respectively at the weekly closure. The traded share volume for the period was 184.8Mn shares which is a 10.24% reduction compared to the previous week.

Moreover, 1 year Treasury bill rate further went up by 04 basis points to 13.31%

during the week. At the same time, USD closed the week at LKR 133.96. Colombo Stock Exchange will be closed 31st August 2012 for Adhi Binara Full

Moon Poya Day.

Close +/- % +/-CSEALL Index 5180.15 66.00 1.29P/E (x) 10.61P/Bv (x) 1.65

2.65

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

5000

5500

6000

6500

7000

7500

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

Source: Bloomberg

Australia

The Australian share market on moved lower as resource companies suffered steep earnings losses amid weakness on commodities markets. The benchmark S&P/ASX200 index dropped 40.7 points or 0.93 per cent to 4,315.7. The Iron Ore price took a plunge to around the $US90.30 in local trading yesterday and moved lower after market.

The local share market is set for a lower start on Friday as world markets dropped into the red, due to caution ahead of a highly anticipated speech by the head of the US central bank. The SFE Futures 200 is pointing downwards 18 points or 0.41per cent to 4,287. Expectations that Federal Reserve Chairman Ben Bernanke would announce new economic stimulus on Friday have weakened as the event draws nearer.

On the company news front for Friday, Harvey Norman Holdings (HVN.AU) releases its full year results. No major economic data is scheduled for release on Friday.

Close +/- % +/-S&P/ASX 200 INDEX 4315.67 -40.77 -0.94P/E (x) 16.35P/Bv (x) 1.72

6.58Dividend Yield

STANDARD & POORS/ ASX 200 INDEX

3800

4000

4200

4400

4600

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

Source: Bloomberg

Hong Kong

The HSI dropped 236 points to 19,553 and the HSCEI dropped 130 points to 9,341. The volume was 42.4 billion.

ICBC (1398), the world's biggest lender by market capitalization reported interim

results yesterday. Net profit increased by 12.49% to $123.16 billion (RMB) yoy which was close to the market's expectation $122.88 billion (RMB).

Another Chinese bank, BOCOM (3328) also reported interim results yesterday.

Net profit rose by 17.78% to $31.088 billion (RMB) yoy, better than the market expected. The cost to income ratio declined by 4.58% to 25.61% and the non-performing loan ratio dropped from 0.86% to 0.82% yoy. They showed good cost controlling ability and risk management of the company.

Technically, the HSI closed at 19,553 which fell below 50-SMA (19,598) and 100-

SMA (19,651). It confirmed our previous selling signal. We remain our short term bearish view, investors are suggested to sell shares, especially the H-shares.

We peg resistance for the HSI at 19,900 and support at 19,300.

Close +/- % +/-HSI INDEX 19552.91 -235.60 -1.19P/E (x) 9.98P/Bv (x) 1.34

3.69Dividend Yield

HANG SENG INDEX

16000

17000

18000

19000

20000

21000

22000

23000

24000

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

Source: Bloomberg

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Singapore

Regional Strategy – Malaysia Malaysia boleh*? Overweight if BN strong mandate

Resilient domestic demand -on the back of an acceleration in investment- continued to drive the Malaysia economy in 2Q12. Investment received a boost from projects under the Economic Transformation Program as well as massive infrastructure investment. Along with healthy domestic consumption, the Malaysia economy should be relatively sheltered from external macro headwinds. However, the reliance on policy to drive investment is worrying. In view of the increasingly limited fiscal space, government expenditure is likely to be constrained. Thus, continued expansion in household consumption and private sector investment (esp by non government-linked companies) is essential to sustain the growth momentum amid weakness in external demand.

We maintain our view that Bank Negara Malaysia will continue to stand pat and re-assess its policy rate position post-elections (barring any significant deterioration in the global macro environment).

On the political front, uncertainties abound. Should global economic conditions worsen, the Najib administration might inevitably bear the brunt of the electorate’s wrath, depending on how the Malaysia economy weathers this global economic malaise. Furthermore, the size of the recent Bersih 3.0 rally spells discontent. Thus, we opine that Najib might be apprehensive that his BN coalition might not be able to secure the two-thirds majority in Parliament -which it lost in the recent 2008 watershed elections- despite earlier populist moves. At the upcoming Budget 2013 which will be tabled on Sept 28, we do not rule out the possibility of further cash handouts to the low-income households as a political move to shore up further support for the BN Coalition. While these cash handouts and pre-election pump priming might help bolster domestic demand and mitigate weakness in external demand, we caution that these populist moves might push the government towards fiscal peril.

Amid an ongoing global slowdown, Malaysia’s bourse has been relatively insulated -and even saw the listing of two mega IPOs priced towards the upper end of their range- demonstrating the healthy domestic demand as well as more critically Malaysia’s Employees Provident Fund (EPF)’s significant investment in Malaysian equities (particularly the blue chips).

Our outlook for the KLCI is Marketweight, as although we like the domestic demand story, valuations are non-compelling in view of the considerable political risk ahead of the 13th General Elections which threatens to undermine Malaysia’s robust macro fundamentals. Specifically, in the event that the incumbent Barisan Nasional fail to obtain a strong mandate, the Economic Transformation Program and Government Transformation Program -major pillars of the domestic demand story- may be confronted with headwinds. Conversely, a strong mandate for BN may lead us to re-visit with an Overweight.

CapitaMalls Asia Ltd – Update Recommendation: Buy Previous close: S$1.635 Fair value: S$1.82

Visited The Star Vista at Vista Exchange

Immediate 400,000 catchment from business parks and research facilities within one-north, education institutions and residents in the vicinity

Serve as potential asset to be offered to CMT

Maintain Buy with target price unchanged at S$1.82

Thailand Home Product Center – Company Update Recommendation: ACCUMULATE Previous close: Bt12.40 Fair value: Bt13.50

Less distance store location and fears on flood dragged same-store-sales-growth lower in 2QCY12, which is expected to fall further in 3QCY12.

Gross margin is likely to continue to widen.

Given aggressive branch addition, HMPRO plans to open eight branches in 2013 and is in feasibility study for overseas investment.

We maintain an ‘ACCUMULATE’ stance for HMPRO shares with pre-XD target price of Bt13.50/share or diluted price of Bt11.25.

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Hong Kong Geely(175.HK) - Stable 12H result with surged exports Rating: Accumulate Close Price: HKD $2.54 Target Price: HKD $2.98

Geely releases mid-2012 report: Operation Turnover increased by 6% to RMB11.177 billion from a year ago, operating cost up by 6% year-on-year, and yearly profit attributable to shareholders of the parent company reached RMB1.02 billion, up by 8.7% from the same period of previous years. The Company realized diluted EPS RMB0.125, rising by 9%, and performance was in line with the expectation. Meanwhile, the company did not announce an interim dividend. Main driver for performance growth came from the export market and satisfactory demand of Emgrand brand. In addition, government subsidy income increased by 19% year-on-year to nearly RMB100 million.

Strong export growth is the key highlight. The Company H1 sold 222,000 vehicles, up by 4.2% from the same period of last year, taking 48.3% of the yearly sales goal of 460,000 units. Among them, Domestic market regression accelerated sales down by 9%, but export demand remained strong, sales up by 199% to 40,000 units, which offset the unfavorable slowdown of domestic sales. Yearly export is expected to break 85,000 units, up 115% year-on-year.

Valuation and Rating. After Geely successfully purchased Volvo, remarkable progress was made in safety and quality aspects, which improved the Company brand image. We believe that supported by new car models and export boom, H2 sales will be better than expected. We maintain 12-month target price of HKD2.98, corresponding to 9.7 times and 8.2 times of diluted EPS in end-2012 and end-2013, a premium of 17% over the present price, “accumulate” rating maintained.

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Market News

US U.S. stocks retreated, trimming the third straight monthly advance for the benchmark Standard & Poor’s 500 Index, amid concern about

a worsening of Europe’s debt crisis and of a further slowdown of the global economy. Sears Holdings Corp. (SHLD) slumped 7.9 percent as the retailer will be replaced in the S&P 500 by chemical maker LyondellBasell Industries NV. (LYB) Ciena Corp. (CIEN), a maker of communications-network equipment, tumbled 20 percent after reporting a wider-than- projected loss and forecasting lower revenue than analysts had estimated. Gap (GPS) Inc. rose 2.7 percent as sales beat estimates. Equities slumped as data showed that economic confidence in the euro area and Japan’s retail sales fell more than economists forecast, while South Korean manufacturers’ confidence stayed near the lowest level since the global financial crisis. Spain will delay deciding whether to seek a sovereign bailout until the aid conditions are clear, Prime Minister Mariano Rajoysaid following a meeting with French President Francois Hollande. (Source: Bloomberg)

AT&T Inc. (T) is refining its retail strategy with its first flagship store, a location on Chicago’s Michigan Avenue that goes beyond phones

and tablets to show services such as fitness applications and “smartcar” features. The 10,000-square-foot (929-square-meter) store, opening Sept. 1 in the shopping mecca known as Chicago’s “Magnificent Mile,” is three times larger than the average of the company’s 2,300 retail outlets. Located across the street from Coach Inc. and Cartier Ltd. stores, it has cement floors, white plastic and reclaimed teak furniture with more than 100 video displays. With the loss of its exclusive agreement to sell Apple Inc. (AAPL)’s iPhone and a saturated wireless market that makes it hard to find new subscribers, Dallas-based AT&T is planning to use its stores to gain an edge against Verizon Wireless, Sprint Nextel Corp. (S) and T-Mobile USA Inc. The move also pits AT&T against the standard-bearer in consumer-electronics retail, Apple itself. (Source: Bloomberg)

Singapore CIMB Research downgraded Parkway Life Real Estate Investment Trust, which owns healthcare assets, to 'neutral' from 'outperform',

citing high valuations as it trades at a premium. Units of Parkway Life were down 0.5 per cent at S$1.925, and have gained 8.2 per cent so far this year. "The market has rewarded the stock with a handsome defensive premium. At 30 per cent premium over book and yield compression to 5 per cent, we struggle to see significant upside," said CIMB. However, CIMB raised its target price to S$2.11 from S$1.96, taking into account a lower discount rate of 7 per cent, and said possible acquisitions in Malaysia and Australia could be a re-rating catalyst. (Source: BT online)

About two-thirds of the 178 respondents in a REACH Quick Poll feel that Prime Minister Lee Hsien Loong's vision of Singapore as a

Home with Hope and Heart resonated with them. The poll, which closed on Thursday, showed that 77 per cent welcome the broad ideas raised in the Prime Minister's National Day Rally speech on promoting parenthood as steps in the right direction. Some 71 per cent felt that measures such as having a new statutory board to oversee pre-school education, raising the quality of programmes for pre-schoolers, upgrading pre-school teacher training and giving more support to children from middle and lower-income families can help improve the standard of pre-school education. "Having more babies" was the most discussed topic among 530 feedback contributions that REACH received through various channels over the past few days. The second and third most discussed topics were "Education" and "A Big-hearted Society" respectively. (Source: BT online)

Hong Kong Chinese Premier Wen Jiabao told his German counterpart that Spain, Italy and Greece must take steps to prevent a worsening of the

euro region’s sovereign-debt crisis as he pledged to consider further European bond purchases. “The main worries are two-fold: First is whether Greece will leave the euro zone,” Wen said after meeting Chancellor Angela Merkel in Beijing, a pool report showed. “The second is whether Italy and Spain will take comprehensive rescue measures. Resolving these two problems rests with whether Greece, Spain, Italy and other countries have the determination for reform.” (Source: http://www.bloomberg.com)

Hong Kong will boost the supply of homes and give preference to local buyers, as it seeks to cool housing prices that have surged to

become the world’s most expensive amid record-low interest rates. Chief Executive Leung Chun-ying announced a 10-point package yesterday that included speeding up approval of permits for private project sales, selling public units originally intended for rental and drafting policies that will give preference to locals. “It’s a nice gesture but it won’t have a real impact on prices,” said Wong Leung-sing, associate research director at Centaline Property Agency Ltd. “Accelerating sales and increasing supply wouldn’t solve the problems. They haven’t addressed the real issue and that’s the market is flush with cash.” (Source: http://www.bloomberg.com)

Industrial & Commercial Bank of China Ltd. led the nation’s biggest lenders in posting slower profit growth as a sluggish economy

curtailed demand for financial services and more borrowers defaulted on debt. Net income at ICBC, the world’s largest lender by market value, climbed 11 percent in the second quarter to 61.8 billion yuan ($9.7 billion), according to first-half figures reported yesterday by the Beijing-based company. Combined earnings of China’s five biggest banks increased 13 percent to 203.6 billion yuan in the quarter, slowing from 33 percent a year earlier. (Source: http://www.bloomberg.com)

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Thailand Foreign investors remained net sellers of Thai equities worth Bt1,204.38mn on Thu. (Source: Bisnews) The Bank of Thailand’s Monetary Policy Committee will meet on Sep 5 to decide on whether to place its economic and export growth

targets under revision. MPC member Narongchai Akkaraseranee also urged the government to speed up investment spending to offset lower exports. (Source: Krungthep Turakij)

Euro-zone debt crisis dealt a much heavier blow to a global economy and Thai exports in Jul 2012, the Fiscal Policy Office said in its

monthly economic report. Full-year exports are now expected to grow by 5%-6% against a previous estimate of 12.8% due to the impact of the global economic slowdown and the European debt crisis. To meet the new target, the monthly export value for the remainder of the year must be at least US$20bn. (Source: Post Today)

Indonesia The Investment Coordinating Board (BKPM) targets next year’s opening of new representative offices in China, India, Germany, and

South Korea will achieve investments of over USD 4 billion. Deputy of Investment Planning at BKPM, said the opening of each new representative office will reap an investment of over USD 1 billion. The investment potential that may attract the four countries varies greatly. Germany has the investment potential of advanced technologies (high technology) necessary for Indonesia. China will certainly be interested in entering the processing, mining and industrial sectors. The infrastructure sector also attracts China, supporting the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3KI). India and South Korea are expected to have a similar pattern of investment with China, entering the sectors of infrastructure, mining processing industry, electronic industry, chemical industry, tires, and steel industries. BKPM’s data records China’s investment realization in Indonesia this year has not reached the top five countries of investment origin. In fact, BKPM’s data shows China’s investment during January to June 2012 only reached USD 62.58 million with 119 investment projects. This figure is much lower than the top five countries with the largest investments in Indonesia as of the first half of 2012, with Singapore investing USD 2 billion, Japan USD 1.1 billion, South Korea USD 1 billion, the United States of USD 700 million, and Australia USD 600 million. (Source: Indonesia Finance Today)

The government expects the current account in 2013 to be in deficit. Minister of Finance, said the government will maintain the current

account deficit from widening too much and securing the balance of payments. Based on 2013 Draft State Budget and Expenditure (RAPBN), the government is targeting export growth of 11.7 percent and import of 13.5 percent. This target is higher than this year’s expectation of 7-7.2 percent export growth and import of 8.5-8.7 percent. Data from Bank Indonesia shows that the current account deficit in the second quarter of 2012 rose to USD 6.9 billion or 3.1 percent of Gross Domestic Product (GDP) at USD 3.2 billion, which is 1.5 percent of the first quarter’s GDP. Meanwhile, the current account started experiencing deficit in the fourth quarter of 2011, with USD 1.6 billion or 0.7 percent of GDP. In the World Bank’s publication in July reports this year's current account deficit to be at USD 7.9 billion, declining sharply from last year’s surplus of USD 1.7 billion. The deficit is expected to fall to USD 4.6 billion in 2013 then increased again to USD 7.4 billion in 2014. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka's annual inflation rate may have accelerated to near record high of 10.2 percent year-on-year in August as an extended

drought pushed up food prices and as a weaker rupee aggravated import bills. Annual inflation is expected to have accelerated to its highest since January 2009, when it hit a record 10.4 percent on a new consumer price index. The sharp dip in the rupee currency along with higher foodprices drove annual inflation in the $59 billion economy to a 42-month high of 9.8 percent last month. (Source: in.reuters.com)

Australia Iron ore prices have continued their rapid fall, dragging down mining shares, putting further pressure on federal and West Australian

budget estimates and leading Fortescue Metals Group to join analysts in admitting the slump may have further to go. The price of the steelmaking ingredient, which is the nation's major export, slipped another $US4.50 to $US90.30 overnight on Wednesday, extending the iron ore price fall in the past four months to 38 per cent. (Source: The Australian)

Companies have raised their investment plans by the least in almost two decades, adding to fears that the mining boom may soon peak

just as a worsening iron ore rout deepens Labor’s surplus challenge. Though planned spending, particularly by resources companies, remains robust, the Australian Bureau of Statistics’ quarterly capital expenditure survey shows firms upgraded their outlook by 4.7 per cent – less than half the average second-quarter gain of the past decade. The numbers add to the debate on whether the boom – the main driver of Australia’s prosperity since 2003 – is about to turn the corner. (Source: Financial Review)

Boart Longyear, the world’s largest mineral exploration drilling company, has painted a bleak outlook for the global mining industry and

warned that more projects will be shelved as miners cut back on development. Shares in Australia’s largest contract driller plunged 36 per cent yesterday as the Utah-based company downgraded its guidance for 2012 and admitted the mining boom had ground to a halt. “Our view is that the market has either plateaued or peaked,” Boart Longyear chief executive Craig Kipp said. “I would almost call it a pause as you try and figure out where you’re going to get the next return for your dollar if you’re a mining company.” Boart cut its 2012 revenue forecast to $US2 billion from $US2.3 billion and earnings before interest, taxes, depreciation and amortisation (EBITDA) to between $US360 million and $US390 million, sparking panic among investors. The company’s shares closed down 36 per cent, or 88¢, at $1.50 and have now shed two thirds of their value since March. (Source: Financial Review)

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Dollar Index -0.03% Gold 1,655.60 +0.08%

Crude oil -0.91% US Treasury 10yr Yield 1.623 +0.00%

DJI -0.81% S&P 500 INDEX 1,399.48 -0.78%

SHCOMP -0.03%

Source: Bloomberg

10000

11000

12000

13000

14000

Aug-11

Oct-1

1

Dec-11

Feb

-12

Apr-1

2

Jun-1

2

70

75

80

85

Aug

-11

Oct-1

1

Dec-1

1

Feb-1

2

Apr-1

2

Jun-1

2

1200

1400

1600

1800

2000

Aug-11

Oct-1

1

Dec-11

Feb

-12

Apr-1

2

Jun-1

2

70

80

90

100

110

120

Aug-11

Oct-1

1

Dec-11

Feb

-12

Apr-1

2

Jun-1

21.51.61.71.81.9

22.12.22.32.42.5

Aug-11

Oct-1

1

Dec-11

Feb

-12

Apr-1

2

Jun-1

2

2000

2300

2600

Aug-11

Oct-1

1

Dec-11

Feb

-12

Apr-1

2

Jun-1

2

1000

1100

1200

1300

1400

1500

Aug-11

Oct-1

1

Dec-11

Feb

-12

Apr-1

2

Jun-1

2

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Source: Bloomberg

Major World Indices

JCI -1.65% 4,025.58

HSI -1.19% 19,552.91

KLCI 0.03% 1,646.11

NIKKEI -0.95% 8,983.78

KOSPI -1.15% 1,906.38

SET -0.46% 1,214.55

SHCOMP -0.03% 2,052.59

SENSEX 0.29% 17,541.64

ASX -0.94% 4,315.67

FTSE 100 -0.42% 5,719.45

DOW -0.81% 13,000.71

S&P 500 -0.78% 1,399.48

NASDAQ -1.05% 3,048.71

COLOMBO 1.29% 5,180.15

STI -0.98% 3,011.82

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Singapore

Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)

UNITED OVERSEAS 19.18 -3.03 -0.600 59,499 ELEKTROMOTIVE GROUP LTD 0.00 +0.00 +0.000 120,492

DBS GROUP HLDGS 14.47 -1.03 -0.150 57,610 GOLDEN AGRI-RESOURCES LTD 0.71 -2.08 -0.015 60,602

OCBC BANK 9.17 -0.33 -0.030 56,325 GOLDTRON LTD 0.00 -33.33 -0.001 44,232

WILMAR INTERNATI 3.13 -1.57 -0.050 53,832 NOBLE GROUP LTD 1.20 -2.44 -0.030 42,024

NOBLE GROUP LTD 1.20 -2.44 -0.030 50,557 GSH CORP LTD 0.09 -1.06 -0.001 31,985

GOLDEN AGRI-RESO 0.71 -2.08 -0.015 42,793 AUSGROUP LTD 0.40 +5.33 +0.020 27,016

OLAM INTERNATION 1.90 -2.56 -0.050 41,378 GENTING SINGAPORE PLC 1.35 -1.10 -0.015 25,492

KEPPEL CORP LTD 11.14 -1.07 -0.120 39,848 OLAM INTERNATIONAL LTD 1.90 -2.56 -0.050 21,709

SINGAP TELECOMM 3.33 -0.30 -0.010 34,812 IPC CORP LTD 0.15 +0.67 +0.001 20,585

GENTING SINGAPOR 1.35 -1.10 -0.015 34,352 ADVANCE SCT LTD 0.02 -6.25 -0.001 20,517

Hong Kong

Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)

CHINA CONST BA-H 5.13 -2.47 -0.13 1,598,879 CHINA CONST BA-H 5.13 -2.47 -0.13 310,848

AGRICULTURAL-H 2.89 -2.69 -0.08 818,075 IND & COMM BK-H 4.19 -1.87 -0.08 263,190

BANK OF CHINA-H 2.85 -1.38 -0.04 787,845 CHINA MOBILE 83.15 -0.83 -0.70 11,911

IND & COMM BK-H 4.19 -1.87 -0.08 1,105,606 CHINA LIFE INS-H 20.90 +0.97 +0.20 45,964

SOUTH SEA PETROL 0.08 -3.53 -0.00 13,950 SUN HUNG KAI PRO 99.15 -3.55 -3.65 9,207

PAC PLYWOOD 0.04 +16.67 +0.01 6,751 CHEUNG KONG 103.80 -2.72 -2.90 8,124

APOLLO SOLAR ENE 0.22 -5.70 -0.01 33,636 AGRICULTURAL-H 2.89 -2.69 -0.08 280,990

GOME ELECTRICAL 0.66 -2.94 -0.02 80,965 CNOOC LTD 14.74 -0.41 -0.06 54,110

CHINA SHIPPING-H 1.57 -10.80 -0.19 195,043 BANK OF CHINA-H 2.85 -1.38 -0.04 276,196

EVERGRANDE REAL 2.98 -3.56 -0.11 343,429 TENCENT HOLDINGS 238.00 -1.90 -4.60 3,209

Thailand

Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)

SHIN CORP PCL 65.25 +0.38 +0.25 1,756,783 BANGKOK LAND PCL 0.89 -4.30 -0.04 354,501

BANGKOK BANK PUB 187.50 -1.57 -3.00 1,425,777 TMB BANK PCL 1.67 +0.00 +0.00 262,530

ADVANCED INFO 212.00 +1.92 +4.00 1,379,462 TRUE CORP PCL 4.20 +2.94 +0.12 183,240

PTT PCL 329.00 -1.20 -4.00 1,192,631 NATURAL PARK PCL 0.03 +50.00 +0.01 125,605

SIAM COMM BK PCL 147.50 -2.32 -3.50 1,073,253 JASMINE INTL PCL 3.66 +2.23 +0.08 109,452

KASIKORNBANK PCL 165.50 -1.19 -2.00 938,805 BTS GROUP HOLDIN 5.45 -1.80 -0.10 106,592

CHAROEN POK FOOD 31.50 -0.79 -0.25 936,199 G STEEL PCL 0.38 +0.00 +0.00 51,873

TRUE CORP PCL 4.20 +2.94 +0.12 764,769 SOLARTRON PCL 2.14 +0.94 +0.02 48,942

KRUNG THAI BANK 16.30 +0.00 +0.00 696,583 THAI-GERMAN PRO 0.42 +0.00 +0.00 41,806

THAICOM PCL 18.70 +2.75 +0.50 679,994 KRUNG THAI BANK 16.30 +0.00 +0.00 40,020

Indonesia

Top 10 Value Last % Chg Chg Value ('mn) Top 10 Volume Last % Chg Chg Volume ('k)

BANK MANDIRI 7,450 -4.49 -350.00 369,141 ENERGI MEGA PERS 90 -2.17 -2.00 678,351

BANK RAKYAT INDO 6,850 -3.52 -250.00 241,321 BUMI RESOURCES 630 -5.97 -40.00 324,909

ASTRA INTERNATIO 6,800 -2.86 -200.00 231,217 ALAM SUTERA REAL 440 -3.30 -15.00 159,434

BUMI RESOURCES 630 -5.97 -40.00 213,922 TRADA MARITIME 810 -2.41 -20.00 148,409

PERUSAHAAN GAS N 3,725 0.00 0.00 148,551 BUMI SERPONG 980 -4.85 -50.00 65,027

SEMEN GRESIK TBK 12,100 -2.42 -300.00 127,728 SENTUL CITY TBK 191 -4.50 -9.00 63,793

TRADA MARITIME 810 -2.41 -20.00 120,947 BANK MANDIRI 7,450 -4.49 -350.00 48,987

TELEKOMUNIKASI 9,300 0.00 0.00 110,649 LIPPO KARAWACI 860 -4.44 -40.00 40,355

UNITED TRACTORS 21,150 -1.63 -350.00 105,284 PERUSAHAAN GAS N 3,725 0.00 0.00 40,203

BANK NEGARA INDO 3,675 -3.29 -125.00 102,413 SUGIH ENERGY 100 -2.91 -3.00 35,863

Sri Lanka

Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)

ENVIRONMENTAL RE 16.30 1.88 0.30 12,121 FREE LANKA CAPIT 2.40 4.35 0.10 4,423

COLOMBO LAND & D 39.00 2.90 1.10 11,577 PANASIAN POWER L 2.70 0.00 0.00 1,980

KALPITIYA BEACH 6.20 -3.13 -0.20 30,123 KALPITIYA BEACH 6.20 -3.13 -0.20 4,756

CITRUS LEISURE P 30.50 -0.33 -0.10 4,048 ENVIRONMENTAL RE 16.30 1.88 0.30 749

VALLIBEL ONE LTD 15.60 4.00 0.60 1,999 AMANA TAKAFUL 1.70 6.25 0.10 446

LANKA HOSPITAL 38.40 1.32 0.50 8,023 EXPOLANKA HOLDIN 6.60 1.54 0.10 705

PANASIAN POWER L 2.70 0.00 0.00 5,334 VALLIBEL ONE LTD 15.60 4.00 0.60 129

HVA FOODS LTD 14.00 1.45 0.20 4,057 HVA FOODS LTD 14.00 1.45 0.20 291

FREE LANKA CAPIT 2.40 4.35 0.10 10,647 BROWNS INVESTMEN 3.50 2.94 0.10 637

LION BREWERY CEY 235.00 0.00 0.00 235 COLOMBO LAND & D 39.00 2.90 1.10 299

Source: Bloomberg

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Australia

Top 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)

BHP BILLITON LTD 31.990 -2.35 -0.77 413,293 TELSTRA CORP LTD 3.850 0.79 0.03 48,612

RIO TINTO LTD 48.630 -3.78 -1.91 348,669 BOART LONGYEAR LTD 1.500 -36.97 -0.88 43,320

COMMONW BK AUSTR 53.980 -0.61 -0.33 289,747 EXCALIBUR MINING CORP LTD 0.002 100.00 0.00 38,856

NATL AUST BANK 25.200 0.44 0.11 192,286 FORTESCUE METALS GROUP 3.590 -1.64 -0.06 35,956

WESTPAC BANKING 24.760 -0.40 -0.10 188,836 FAR LTD 0.040 -13.04 -0.01 34,551

TELSTRA CORP 3.850 0.79 0.03 186,736 VIRGIN AUSTRALIA HOLDINGS 0.485 -3.96 -0.02 33,932

NEWCREST MINING 25.270 -5.36 -1.43 171,858 AUSTIN EXPLORATION LTD 0.022 -8.33 0.00 32,318

AUST AND NZ BANK 24.860 -0.48 -0.12 141,740 FIRESTONE ENERGY LTD 0.011 37.50 0.00 28,406

FORTESCUE METALS 3.590 -1.64 -0.06 128,142 LYNAS CORP LTD 0.665 -6.34 -0.05 27,564

WOODSIDE PETRO 34.090 -1.59 -0.55 93,642 BLUESCOPE STEEL LTD 0.350 -4.11 -0.02 26,752

Source: Bloomberg

Commodities % Chg Chg Last Price of S$1 Price of US$1

GOLD SPOT (US$/OZ) +0.08 +1.40 1,655.60 0.7747 1.0293

SILVER SPOT (US$/OZ) +0.05 +0.02 30.44 0.7915 0.9926

WTI Cushing Crude Oil Spot Price (US$/bbl) -0.91 -0.87 94.62 0.6379 1.2501

0.5050 1.5788

0.7974 1.0000

Commodities % Chg Chg Last 5.0650 6.3507

Malaysian Rubber Board Standard (MYR/kg) -0.82 -6.50 789.00 6.1853 7.7562

PALM OIL (MYR/Metric Tonne) -1.64 -48.00 2,885.00 62.6500 78.5600

904.7611 1134.4800

Index % Chg Chg Last 2.4938 3.1270

DOLLAR INDEX SPOT -0.03 -0.02 81.67 25.0419 31.3900

Source: Bloomberg

CANADIAN DOLLAR

EURO

BRITISH POUND

Currencies

AUSTRALIAN DOLLAR

Commodities & Currencies

JAPANESE YEN

KOREAN WON

MALAYSIAN RINGGIT

THAI BAHT

US DOLLAR

CHINA RENMINBI

HONG KONG DOLLAR

Maturity Today Yesterday Last Week Last Month

3 Months 0.07 0.08 0.08 0.08

6 Months 0.13 0.13 0.11 0.12

2 Years 0.25 0.26 0.26 0.21

3 Years 0.33 0.36 0.35 0.28

5 Years 0.66 0.68 0.69 0.58

10 Years 1.62 1.65 1.68 1.47

30 Years 2.74 2.76 2.79 2.55

Yield Spread (10 yrs - 3 mths)

Yield Spread (10 yrs - 2 yrs)

US Treasury Yields

1.55

1.37

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

Regional Market Focus

31 August 2012

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Date Statistic For Survey Prior Date Statistic For Survey Prior

8/31/2012 Chicago Purchasing Manager Aug 53.3 53.7 8/31/2012 Credit Card Bad Debts Jul -- 18.0M

8/31/2012 U. of Michigan Confidence Aug F 73.6 73.6 8/31/2012 Credit Card Billings Jul -- 3188.3M

8/31/2012 Factory Orders Jul 2.00% -0.50% 8/31/2012 Bank Loans & Advances (YoY) Jul -- 20.90%

8/31/2012 NAPM-Milw aukee Aug -- 46.7 8/31/2012 M1 Money Supply (YoY) Jul -- 6.60%

9/4/2012 Markit US PMI Final Aug -- -- 8/31/2012 M2 Money Supply (YoY) Jul -- 6.50%

9/4/2012 ISM Manufacturing Aug 50 49.8 9/4/2012 Electronics Sector Index Aug -- 49.2

9/4/2012 ISM Prices Paid Aug 47.5 39.5 9/4/2012 Purchasing Managers Index Aug -- 49.8

9/4/2012 Construction Spending MoM Jul 0.50% 0.40% 9/5/2012 Automobile COE Open Bid Cat A 5-Sep -- 66889

9/5/2012 Total Vehicle Sales Aug 14.10M 14.05M 9/5/2012 Automobile COE Open Bid Cat B 5-Sep -- 88002

9/5/2012 Domestic Vehicle Sales Aug 11.00M 11.00M 9/5/2012 Automobile COE Open Bid Cat E 5-Sep -- 93990

9/5/2012 MBA Mortgage Applications 31-Aug -- -4.30% 9/7/2012 Foreign Reserves Aug -- $244.14B

9/5/2012 Nonfarm Productivity 2Q F 1.80% 1.60% 9/11/2012 Singapore Manpow er Survey 4Q -- 23%

9/5/2012 Unit Labor Costs 2Q F 1.50% 1.70% 9/14/2012 Unemployment Rate (sa) 2Q F -- 2.00%

9/5/2012 ISM New York Aug -- 55.2 9/14/2012 Retail Sales Ex Auto (YoY) Jul -- 2.30%

9/6/2012 Challenger Job Cuts YoY Aug -- -44.50% 9/14/2012 Retail Sales (YoY) Jul -- -0.90%

Date Statistic For Survey Prior Date Statistic For Survey Prior

8/31/2012 Foreign Reserves 24-Aug -- $175.9B 8/31/2012 Money Supply M1 - in HK$ (YoY) Jul -- 7.20%

8/31/2012 Forw ard Contracts 24-Aug -- $28.5B 8/31/2012 Money Supply M2 - in HK$ (YoY) Jul -- 6.20%

8/31/2012 Total Exports YOY% Jul -- -4.30% 8/31/2012 Money Supply M3 - in HK$ (YoY) Jul -- 6.10%

8/31/2012 Total Exports in US$ Million Jul -- $19507M 8/31/2012 Govt Mthly Budget Surp/Def HK$ Jul -- -0.8B

8/31/2012 Total Imports YOY% Jul -- 5.00% 03-05 SEP Purchasing Managers Index Aug -- 50.3

8/31/2012 Total Imports in US$ Million Jul -- $17864M 9/7/2012 Foreign Currency Reserves Aug -- $296.2B

8/31/2012 Total Trade Balance Jul -- $1644M 9/11/2012 Hong Kong Manpow er Survey 4Q -- 15%

8/31/2012 Current Account Balance (USD) Jul $730M $604M 9/13/2012 Industrial Production (YoY) 2Q -- -1.60%

8/31/2012 Overall Balance in US$ Million Jul -- $519M 9/13/2012 Producer Price (YoY) 2Q -- 3.60%

8/31/2012 Business Sentiment Index Jul -- 51.5 9/18/2012 Unemployment Rate SA Aug -- 3.20%

9/3/2012 Consumer Price Index (YoY) Aug 2.60% 2.73% 9/18/2012 Govt Mthly Budget Surp/Def HK$ Aug -- --

9/3/2012 Consumer Price Index NSA (MoM) Aug 0.40% 0.35% 9/19/2012 Composite Interest Rate Aug -- 0.40%

9/3/2012 Core CPI (YoY) Aug 1.70% 1.87% 9/20/2012 CPI - Composite Index (YoY) Aug -- 1.60%

9/4/2012 Consumer Confidence Economic Aug -- 68.2 9/24/2012 Bal of Paymts - Overall 2Q -- $48.16B

9/5/2012 Benchmark Interest Rate 5-Sep 3.00% 3.00% 9/25/2012 Exports YoY% Aug -- -3.50%

Source: Bloomberg Source: Bloomberg

Source: Bloomberg

Thailand Hong Kong

US Singapore

Economic Announcement

Source: Bloomberg

Regional Market Focus

31 August 2012

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Date Statistic For Survey Prior Date Statistic For Survey Prior

9/3/2012Indonesia August Markit

Manufacturing PMI10-20 SEP Exports YoY% Jul -- -7.90%

9/3/2012 Inflation (YoY) Aug -- 4.56% 10-20 SEP Imports YoY% Jul -- -15.00%

9/3/2012 Inflation NSA (MoM) Aug -- 0.70% 14-28 SEP GDP (YoY) 2Q -- 7.90%

9/3/2012 Core Inflation (YoY) Aug -- 4.28% 9/18/2012 Repurchase Rate 18-Sep -- 7.75%

9/3/2012 Exports (YoY) Jul -- -16.40% 9/18/2012 Reverse Repo Rate 18-Sep -- 9.75%

9/3/2012 Total Imports (YoY) Jul -- 10.70% 9/28/2012 CPI Moving Average (YoY) Sep -- --

9/3/2012 Total Trade Balance Jul -- -$1322M 9/28/2012 CPI (YoY) Sep -- --

03-07 SEP Danareksa Consumer Confidence Aug -- 91.4 10-19 OCT Exports YoY% Aug -- --

03-04 SEP Consumer Confidence Index Aug -- 113.5 10-19 OCT Imports YoY% Aug -- --

03-06 SEP Foreign Reserves Aug -- $106.56B 10/16/2012 Repurchase Rate 16-Oct -- --

03-06 SEP Net Foreign Assets (IDR Tln) Aug -- 977.16T 10/16/2012 Reverse Repo Rate 16-Oct -- --

07-13 SEP Money Supply - M1 (YoY) Jul -- 22.50% 10/31/2012 CPI Moving Average (YoY) Oct -- --

07-13 SEP Money Supply - M2 (YoY) Jul -- 20.90% 10/31/2012 CPI (YoY) Oct -- --

12-20 SEP Total Local Auto Sales Aug -- 102512 11/8/2012 Repurchase Rate 8-Nov -- --

12-20 SEP Total Motorcycle Sales Aug -- 579077 11/8/2012 Reverse Repo Rate 8-Nov -- --

Date Statistic For Survey Prior

8/31/2012 Private Sector Credit MoM% Jul 0.40% 0.30%

8/31/2012 Private Sector Credit YoY% Jul 4.40% 4.40%

9/3/2012 AiG Performance of Mfg Index Aug -- 40.3

9/3/2012 TD Securities Inflation MoM% Aug -- 0.20%

9/3/2012 TD Securities Inflation YoY% Aug -- 1.50%

9/3/2012 Company Operating Profit QoQ% 2Q -- -4.00%

9/3/2012 Inventories 2Q -- 0.90%

9/3/2012 Retail Sales s.a. (MoM) Jul -- 1.00%

9/3/2012 ANZ Job Advertisements (MoM) Aug -- -0.80%

9/3/2012 RBA Commodity Price Index Au Aug -- 95.8

9/3/2012 RBA Commodity Index SDR Aug -- -9.80%

9/4/2012 RPData-Rismark House PX Actual Aug -- 0.60%

9/4/2012 Current Account Balance 2Q -- -14892M

9/4/2012 Australia Net Exports of GDP 2Q -- -0.5

9/4/2012 RBA CASH TARGET 4-Sep 3.50% 3.50%

Australia

Sri Lanka

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

Indonesia

Regional Market Focus

31 August 2012

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31 August 2012

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preparation or issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this publication.

Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment. To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold a interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this publication. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, which is not reflected in this material, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the preparation or issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this material. The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction. Section 27 of the Financial Advisers Act (Cap. 110) of Singapore and the MAS Notice on Recommendations on Investment Products (FAA-N01) do not apply in respect of this publication. This material is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this material may not be suitable for all investors and a person receiving or reading this material should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products. Please contact Phillip Securities Research at [65 65311240] in respect of any matters arising from, or in connection with, this document. This report is only for the purpose of distribution in Singapore.

Regional Market Focus

31 August 2012

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Contact Information (Singapore Research Team)

Chan Wai Chee Lee Kok Joo, CFA Joshua Tan CEO, Research Head of Research Macro Strategist

Special Opportunities S-Chips, Strategy Global Macro, Asset Strategy +65 6531 1231 +65 6531 1685 +65 6531 1249

yebo@phillip.com.sg leekj@phillip.com.sg joshuatan@phillip.com.sg

Magdalene Choong, CFA Go Choon Koay, Bryan Derrick Heng Investment Analyst Investment Analyst Investment Analyst

Gaming, US Property Transportation, Telecom. +65 6531 1791 +65 6531 1792 +65 6531 1221

magdalenechoongss@phillip.com.sg gock@phillip.com.sg derrickhengch@phillip.com.sg

Ken Ang Travis Seah Ng Weiwen Investment Analyst Investment Analyst Macro Analyst

Financials REITS Global Macro, Asset Strategy +65 6531 1793 +65 6531 1229 +65 6531 1735

kenangwy@phillip.com.sg travisseahhk@phillip.com.sg ngww@phillip.com.sg

Roy Chen Nicholas Ong Research Assistant Macro Analyst Investment Analyst General Enquiries

Global Macro, Asset Strategy Commodities +65 6531 1240 (Phone) +65 6531 1535 +65 6531 5440 +65 6336 7607 (Fax)

roychencz@phillip.com.sg nicholasonghg@phillip.com.sg research@phillip.com.sg

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Contact Information (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-3-6 Block B Level 3 Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450

Kuala Lumpur Tel (603) 21628841 Fax (603) 21665099

Website: www.poems.com.my

HONG KONG

Phillip Securities (HK) Ltd Exchange Participant of the Stock Exchange of Hong Kong

11/F United Centre 95 Queensway Hong Kong

Tel (852) 22776600 Fax (852) 28685307

Websites: www.phillip.com.hk

JAPAN

Phillip Securities Japan, Ltd. 4-2 Nihonbashi Kabuto-cho Chuo-ku,

Tokyo 103-0026 Tel: (81-3) 3666-2101 Fax: (81-3) 3666-6090

Website:www.phillip.co.jp

INDONESIA

PT Phillip Securities Indonesia ANZ Tower Level 23B,

Jl Jend Sudirman Kav 33A Jakarta 10220 – Indonesia

Tel (62-21) 57900800 Fax (62-21) 57900809

Website: www.phillip.co.id

CHINA

Phillip Financial Advisory (Shanghai) Co. Ltd No 550 Yan An East Road,

Ocean Tower Unit 2318, Postal code 200001

Tel (86-21) 51699200 Fax (86-21) 63512940

Website: www.phillip.com.cn

THAILAND

Phillip Securities (Thailand) Public Co. Ltd 15th Floor, Vorawat Building,

849 Silom Road, Silom, Bangrak, Bangkok 10500 Thailand

Tel (66-2) 6351700 / 22680999 Fax (66-2) 22680921

Website www.phillip.co.th

FRANCE

King & Shaxson Capital Limited 3rd Floor, 35 Rue de la Bienfaisance 75008

Paris France Tel (33-1) 45633100 Fax (33-1) 45636017

Website: www.kingandshaxson.com

UNITED KINGDOM

King & Shaxson Capital Limited 6th Floor, Candlewick House,

120 Cannon Street, London, EC4N 6AS

Tel (44-20) 7426 5950 Fax (44-20) 7626 1757

Website: www.kingandshaxson.com

UNITED STATES

Phillip Futures Inc 141 W Jackson Blvd Ste 3050

The Chicago Board of Trade Building Chicago, IL 60604 USA

Tel +1.312.356.9000 Fax +1.312.356.9005

AUSTRALIA

Octa Phillip Securities Ltd Level 12, 15 William Street,

Melbourne, Victoria 3000, Australia Tel (03) 9629 8288 Fax (03) 9629 8882

Website: www.octaphillip.com