MCI (P) 194/11/2012 Ref No: RM2013_0145 1 of 14

Regional Market Focus

Phillip Securities Research Pte Ltd

30 July 2013

Thailand

Bangkok Dusit Medical Services – Company Preview Recommendation: ACCUMULATE Previous close: Bt148.50 Fair value: Bt175

We cut our CY13 revenue growth outlook for BGH to 13.2% from 15%.

We also trim our CY13 net profit view for BGH to Bt6,576.51mn from a previous estimate of Bt7,363.53mn.

To reflect lower earnings expectations, we slash our CY13 target price for BGH to Bt175/share from Bt191/share. Despite earnings and target price cuts, we rate BGH shares an ‘ACCUMULATE’ as the new target still offers some upside from current trading levels.

Hemaraj Land and Development – Trade Flash Recommendation: ACCUMULATE Previous close: Bt3.50 Fair value: Bt3.92

Operating performance in HEMRAJ’s affiliate Gheco One turned out weaker than expected.

HEMRAJ’s land sales remained in line with forecast. To reflect poorer performance of Gheco One, we cut our CY13 net profit projection by 8% from earlier estimates. Earnings performance, however, appears to grow impressively next year as the power plant business is expected to run smoother than this year.

The adverse impact from weak performance of its affiliate on HEMRAJ’s fundamental was insignificant, while earnings performance looks promising next year. Despite this, we downgrade rating on the stock to ‘ACCUMULATE’ as share prices have increased considerably to offer less than 20% upside to our price target of Bt3.92/share.

Strategy

SECTOR/STRATEGY REPORTS: - Sector Reports: Banking, 8 Jul / Telecommunications, 5 June / Commodities, 29 May / Offshore & Marine, 27 May - Country Strategy: China & HK 5 July / S’pore, 18 Jun / Thai, 17 Jun - Global Macro, Asset Strategy: 8 Jul, Update / ASEAN, 8 May / US, 20 Mar

Regional Market Focus

30 July 2013

2 of 14

Morning Commentary

STI: +0.03% to 3236.9 KLCI: -0.49% to 1798.8 JCI: -1.68% to 4580.5 SET: -1.52% to 1454.3 HSI: -0.54% to 21850 HSCEI: -1.17% to 9641.1 Nikkei: -3.32% to 13661 ASX200: +0.09% to 5046.3 Nifty: -0.93% to 5831.7 S&P500: -0.37% to 1685.3 MARKET OUTLOOK: For our short term trading outlook and latest macro update, please see our webinar (http://www.uniphillip.com/ > Education Programs > Phillip Securities Research Webinar). We also feature Boustead in our webinar which has deep value waiting to be unlocked, and a clear identifiable catalyst. For our longer term outlook please see the latest Global Macro Asset Strategy report below. (PhillipCFDs and ETFs for trading the market outlook can be found in the webinar slides above or the Global Macro report below. PhillipUT Wrap Account offers tactical asset allocation of unit trusts without front loading sales charge.)

Macro Data

USA: The National Association of Realtors (NAR) said its index for pending sales, reflecting sales contracts signed, slipped 0.4 percent to 110.9 in June from a downwardly revised 111.3 in May. The decline was much smaller than the average analyst estimate of a 1.7 percent drop following the May spike to the highest pace since December 2006. Eurozone: Italy’s manufacturing-sentiment index increased to 91.7 in July, the highest since November 2011, from 90.5 in June. Economists had predicted a reading of 88.9. Finish consumer confidence fell to 5 this month from 8.1 in June. In Japan, retail sales rose b 1.6% y-y in June, trailing the market expected 2.1% y-y gain, compared to 0.8% y-y gain in May. On y-y basis, retail sales fell 0.2% m-m, after the 1.5% m-m gain achieved in May. The nation's economy is picking up and BOJ Governor Haruhiko Kuroda indicated little concern that a planned sales-tax rise would derail the economic rebound as Prime Minister Shinzo Abe considers whether to proceed with the move.

Regional Market Focus

30 July 2013

3 of 14

Singapore The Straits Times Index (STI) ended +0.87 points higher or +0.03% higher to

3,236.97, taking the year-to-date performance to +2.21%. The top active stocks were SingTel (+0.51%), DBS (+0.18%), Kep Corp (-

1.04%), GoldenAgr (unchanged) and THBEV (-3.67%). STI is currently trading in a support/resistance cluster upon yesterday’s retreat

and is consolidating. A breakout above 3277 will resume the uptrend; a break below 3205 will imply further downside. Major clusters of support exist from 2930 to 3110.

Although biased to the upside due encouraging macro-economic data, we remain cautious this week due to potential short term weakness and significant economic news. This Thursday, the FED will print its rate decision, and the US jobless claims will be announced.

Top picks currently are Pan United (Buy, TP: S$1.21), SGX (Buy, TP: S$8.30) & Keppel Corp (Accumulate, TP: S$12.25). We believe that also that Boustead SP is severely undervalued (Buy, TP $1.935)

Close +/- % +/-FSSTI 3236.97 0.87 0.03P/E (x) 13.33P/Bv (x) 1.44

3.04Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

3500

3700

7/30 10/30 1/30 4/30

Source: Bloomberg

Thailand Thai stocks traded in the red throughout the session on Mon in line with negative

sentiment amid fears of economic slowdown in China and domestic political worries but trading volume was razor-thin.

The SET index is likely to remain in a subdued mode within a trading range of 1440-1470 points today as investors are still awaiting US FOMC policy meeting during the middle of the week to look for clues on the timing of a potential QE tapering and a possible interest rate cut/another potential round of stimulus from ECB. In Thailand, domestic political temperature looks set to heat up from this weekend onwards, a factor that could make investors hesitate to fully return to the market as evidenced by the notably thinning trading volume.

Foreign investors turned heavy net sellers of Thai equities to the tune of around Bt2.5bn on Mon. In our view, foreign sell-off could pile more pressure on market sentiment despite subdued trading volume.

Under this circumstance, selective trading strategy is advised with strong earnings/high dividend/low beta plays in focus. Equity exposure should be maintained at 50% of the short-term trading portfolio. Pare back equity holdings if the SET index breaks below 1440 points. Set a cut loss at 1400 points.

Resistance for the SET index is seen at 1470-1490 and support at 1440-1420 today.

Close +/- % +/-SET INDEX 1454.28 -22.43 -1.52P/E (x) 16.54P/Bv (x) 2.30

2.96Dividend Yield

STOCK EXCH OF THAI INDEX

900

1000

1100

1200

1300

1400

1500

1600

1700

7/30 10/30 1/30 4/30

Source: Bloomberg

Indonesia

Most Indonesian stocks tumbled Monday (29/07), amid mostly negative stock indexes in Asia ahead of a row of economic data this week, and as the Yen strengthened. The Jakarta Composite Index (JCI) fell 78.407 points, or 1.68%, at 4,580.467. The decline on Monday included all major industry sectors. Mining sector fared worst with 2.44%-drop, followed by consumer goods sector with 2.30%-decline, and miscellaneous industry sector with 2.08%-fall. Most blue-chip shares also declined on Monday. The LQ45 index that tracks the blue-chip stocks slid 14.866 points, or 1.91%, at 762.289. Decliners outran gainers 215 to 52 Monday on the Indonesia Stock Exchange, where volume on the regular board totaled at only 2.23 billion shares worth IDR 2.73 trillion. Foreign investors posted net sale of IDR 379.18 billion.

Indonesian stocks will likely move in a mixed tone today, with weak closes on US markets overnight and positive starts in Asia today. We expect the Jakarta Composite Index (JCI) to move sideways, within the price band of between 4,528 and 4,675.

Close +/- % +/-JCI Index 4580.47 -78.41 -1.68P/E (x) 18.46P/Bv (x) 2.82

2.14Dividend Yield

JAKARTA COMPOSITE INDEX

3400

3900

4400

4900

5400

7/30 10/30 1/30 4/30

Source: Bloomberg

Regional Market Focus

30 July 2013

4 of 14

Sri Lanka The Colombo bourse demonstrated a mixed note during the day, resulting the

indices to close on different spaces. The market witnessed a downward trend during early hours mainly due to the sluggish participation of the investors, nevertheless the trend reversed towards the final hour pushing the ASPI back into the green territory to reach an intraday peak of 6,062.23, however closed a few points lower at 6,056.92 (gaining a minute 05.15 points or 0.09%). The S&P SL20 closed negative losing 2.10 points or 0.06% to settle the day at 3,425.77. As at the day’s close, the total market capitalization stood at LKR 2.33Tn, charting a year to date gain of 7.54%. The market PER & PBV stood at 16.03 and 2.15 respectively. The daily aggregated turnover amounted to LKR 451.30Mn, indicating an increase of 11.76% against the previous trading day. Under the sectorial summary, Beverage Food & Tobacco (BFT) sector stood out as the prime contributor providing LKR 156.20Mn, while accounting to 35% of the aggregated turnover for the day. Further, Diversified Holdings (DIV) sector added LKR 118.73Mn to the daily turnover. During the day, shares totaling up to 9.74Mn changed hands, logging a drop of 47.80% compared with the previous trading day. Price losers outstripped the price gainers by 118:57. Foreign participants were bullish during the day, to result in a net foreign inflow of LKR 53.92Mn (foreign buying amounted to LKR 264.34Mn & selling amounted to LKR 210.42Mn); this resulted in the year to date net foreign inflow to touch the LKR 17Bn mark for the 1

st time during the year. With regard to the local FOREX, the

USD closed at LKR 133.21/- selling LKR 130.01/- buying.

Close +/- % +/-CSEALL Index 6056.92 5.15 0.09P/E (x) 12.17P/Bv (x) 1.67

2.60

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

5000

5500

6000

6500

7000

7/30 10/30 1/30 4/30

Source: Bloomberg

Australia The Australian share market on Monday was pushed higher by shares in the four

major banks. The benchmark S&P/ASX200 index gained 4.3 points, or 0.09 per cent, to 5046.3.

Today (30/07/13), the Australian share market is set for a flat start after overseas markets lost ground as investors wait for major economic news coming out of the US later in the week.

In local economic news, the Australian Bureau of Statistics will release building approvals data for June on Tuesday. Reserve Bank of Australia governor Glenn Stevens is scheduled to deliver a speech at a function in Sydney, and the Housing Industry Association publishes its trades report for June quarter.

In company news, Woolworths will release its fourth quarter sales. Laboratory operator ALS holds its annual general meeting in Brisbane, Drillsearch Energy releases its quarterly report and education firm Navitas releases its full year financial results.

Close +/- % +/-S&P/ASX 200 INDEX 5046.33 4.30 0.09P/E (x) 20.59P/Bv (x) 1.99

5.78

STANDARD & POORS/ ASX 200 INDEX

Dividend Yield

3800

4000

4200

4400

4600

4800

5000

5200

5400

7/30 10/30 1/30 4/30

Source: Bloomberg

Hong Kong

HSI and CEI dropped 118 points or 0.54% to 21,850 and 114 points or 1.17% to 9,641 respectively. Trading volume further decreased to HKD42.1 billion.

Market concerns Central government to carry out audit and compliance measures on local debts and makes the debt’s non-performing risks emerge, SHCOMP and CSI300 lost 1.7% and 2.16% respectively, dragged HK market.

Kunlun Energy (135.HK), the worst performed HSI constituent stock, lost 6.1% due to concern of raising natural gas price hurts its margins. Lifestyle Int’l (1212.HK) gained 5.9% after interim results released, net profit surged 20% yoy to HKD1.2 billion.

Technically, HSI failed to close above 22,000 last week, which is the key resistance in short-term. Support will be at 21,734. Close +/- % +/-

HSI INDEX 21850.15 -118.80 -0.54P/E (x) 10.05P/Bv (x) 1.39

3.44Dividend Yield

HANG SENG INDEX

17000

18000

19000

20000

21000

22000

23000

24000

25000

7/30 10/30 1/30 4/30

Source: Bloomberg

Regional Market Focus

30 July 2013

5 of 14

Market News

US For the first time in three years, the U.S. Treasury will announce plans to begin reducing debt sales in a victory for stimulus over austerity,

the majority of Wall Street’s biggest bond dealers say. Government sales will be cut by $40 billion to $100 billion during the next year when the Treasury announces its quarterly funding needs July 31, a survey of the 21 primary dealers that are obligated to bid at U.S. bond auctions shows. About two-thirds of those responding, including Goldman Sachs Group Inc. and JPMorgan Chase & Co., see reductions this year, possibly as soon as next month. The U.S. issued $2.153 trillion in 2012. With borrowing needs waning as a growing economy boosts tax revenue, and said today it will borrow about 6.3 percent less in the July-to-September period than it projected three months ago as a stronger economy and job growth help narrow the nation’s budget deficit. (Source: Bloomberg)

U.S. financial companies, fueled by the fastest earnings growth in the Standard & Poor’s 500 Index, are poised to reclaim their position

as the market’s biggest industry for the first time since the credit crisis. Banks, brokers and insurance companies make up 16.8 percent of the S&P 500, almost double the level from 2009 and closing in on technology companies at 17.6 percent, according to data compiled by Bloomberg. Bank of America and Morgan Stanley are helping lead gains in the index this month after profits topped analyst estimates. Intel and Microsoft Corp. are among the worst after earnings trailed forecasts. For bulls, the change signals banks will lead the economy even after the Federal Reserve begins to reduce stimulus. Bears say S&P 500 profits would be down this quarter if not for banks. They note that the last time financials were the biggest industry was in 2008 and the consequences were disastrous. “The fact that we are seeing banks perform reasonably well provides a certain sense of confidence in the underlying economy,” Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which oversees about $130 billion, said in a July 25 phone interview. “Without the financials working, it would be hard to imagine that all the rest would be working at all.” (Source: Bloomberg)

Singapore Prices of completed private apartments and condos (excluding small units) in the Central Region slipped 1.5 per cent in June over May,

according to Monday's flash estimates of the Singapore Residential Price Index (SRPI). The revised figures for May show that the SRPI for Central Region rose 1.5 per cent in that month from April. Central Region is defined as districts 1-4 (including the financial district and Sentosa Cove) and the traditional prime districts 9, 10 and 11. Minted by the Institute of Real Estate Studies at National University of Singapore, the SRPI series tracks prices of completed non-landed private homes excluding executive condos. (Source: Business Times)

Thailand The Fiscal Policy Office (FPO) cut its 2013 economic growth forecast for the country to near 4% from a previous estimate of 4.5% as a

result of weaker-than-expected growth in the first half of the year. The country’s GDP growth was also expected to be below 4% in the second quarter of 2013 compared to the same period of 2012. (Source: Krungthep Turakij)

A survey by the Thai Chamber of Commerce (TCC) showed economies across all regions of the country show signs of slowdown except

the eastern region which has continued to see healthy growth. The TCC expects the country’s economy to grow near 4% this year while consumption, investment, manufacturing and trade are poised for a slowdown in 2H13. (Source: Krungthep Turakij)

Bank of Thailand Governor Prasarn Trairatvorakul said Thailand’s economy could maintain its growth momentum in the second half of

the year as a slowdown reflects the high base effect of last year. Commercial banks said they would not cut interest rates due to the need to maintain their client base and compete for deposit funding. (Source: Krungthep Turakij)

Turakij Bundit University said up to 80,000 SME businesses will likely go belly up by the end of this year after the government’s Bt300

daily minimum wage policy caused 50,000-70,000 SME businesses to go under in the first half of the year, urging the government to address long-term economic structural problems. (Source: Post Today)

Hong Kong Chinese cities seeking to cap home-price gains below income growth may need to tighten property curbs as the nation’s slowing

economic expansion makes their targets more difficult to meet. Hangzhou, the capital city of the eastern province of Zhejiang, will tighten approvals of pre-sale permits in the second half and may raise down payments for second homes to make sure its price-control target is met, according to a July 27 report by Today Morning Express, a Chinese-language newspaper affiliated with the provincial government. China’s economy slowed for a second quarter as the pace of factory output weakened, adding to risks that the government will miss its expansion target and cutting income growth excluding inflation to 6.5 percent in the first half, from 9.7 percent a year earlier. That leaves less room for the 35 provincial-level cities that have set annual home-price targets this year, mostly capping increases at local income growth. The bigger, first-tier cities such as Beijing, Shenzhen and Guangzhou, where home-price gains have been among the biggest this year, have already been rejecting pre-sale permits for projects whose target selling prices are deemed too high by local officials. Guangzhou plans to cap land prices at 145 percent of the auction’s starting price, Xinhua News Agency reported July 26, citing local draft rules. Hangzhou’s new-home price gains last month were “very close” to its urban income growth, the newspaper report said, citing a municipal government meeting analyzing half-year economic conditions. Income by the city’s urban residents increased by 6.5 percent in the first half, compared to last year’s 7.4 percent, according to its statistics bureau. China’s housing sales in the first six months jumped 46 percent from a year earlier as the property market recovered after the central bank cut interest rates last year to stem an economic slowdown. (Source: Bloomberg)

Four months after taking over as China’s top stock-market regulator, Xiao Gang showed up at a government meeting in July with gray

Regional Market Focus

30 July 2013

6 of 14

hair at his temples. Xiao, 54, is stuck between more than 700 companies waiting to raise funds and Chinese leaders led by Xi Jinping who have pledged to clean up corruption. The China Securities Regulatory Commission, under pressure from investors to avoid exacerbating a 25 percent slump in the Shanghai Composite Index (SHCOMP) since July 2010, is drafting rules to curb misconduct that would establish stiff penalties for investment banks before ending an almost 10-month freeze on initial public offerings. “He has to walk on a tightrope to balance it out,” said Fang Fang, JPMorgan Chase’s head of investment banking for China, in a July 17 interview in Beijing. “There’s fear that these listing candidates could potentially flood the market.” The 83 companies whose IPO applications have been cleared by the CSRC listing committee and are pending final approval may raise a combined 55.8 billion yuan ($9.1 billion), according to June estimates from Ernst & Young LLP. Those include Shaanxi Coal & Chemical Industry Group and China Postal Express & Logistics, the regulator’s website shows. (Source: Bloomberg)

Indonesia Bank Indonesia (BI) announced that 15% of the private sector's debt is not protected from exchange rate risks. BI reminded business

players to pay attention to the risk management of the exchange rate and not to gain profit from the Rupiah depreciation. Regarding the dollar demand to pay private debts, BI governor said that the amount is under control. The same way goes for the dollar need for dividend payments and profit repatriations. (Source: Tempo)

Data from the International Trade Centre (ITC) derived from UN COMTRADE statistics show that Indonesian furniture exports to the US

increased by 13.6 percent to USD 7.32 million in 2012. As a result, Indonesia has managed to be placed as the eighth largest furniture exporter to the US. In first place is China, which dominates 50 percent of the market. (Source: Tempo)

Based on Bank Indonesia’s survey result conducted in 20 cities in Indonesia, until the third week of July, inflation month-on-month

reached 2.77%, so inflation year-on-year to reach eight percent. The governor of Bank Indonesia said July inflation was driven by rising prices of food such as beef, onions and chili. The governor added that the Ministry of Commerce, Ministry of Agriculture and the Ministry of Transportation have conducted a variety of policies to reduce prices such as improving distribution channels and market operations. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka's loans to private business picked up in May as credit to both state enterprises and the central government from banks dropped

in May. Credit to the central government dropped to 845.7 billion rupees in May from 851.2 billion rupees a month earlier from rupee banking units of banks. Forex borrowings, which are also affected by valuation changes dropped to the equivalent of 138.1 billion rupees from 141.6 billion rupees. In the first four months of the year the state severely crowded out private business borrowing cash from banks and keeping lending rates high as the budget deficit deteriorated. State energy enterprises, which were also borrowing heavily benefitted from better rainfall, which increases hydro power generation. An electricity price hike and easing international oil prices are also helping. State enterprise borrowings from banks dropped to 333.2 billion rupees from 344.6 billion rupees, though rupee borrowings rose to 111.0 billion rupees from 110.6 billion rupees. Dollar borrowings however dropped to 222.3 billion rupees from 233.9 billion rupees. Total credit to the state dropped 6.2 billion rupees to 1555.6 billion rupees in May from a month earlier, which included an increase in central bank credit of 5.2 billion rupees to 1,222.4 billion rupees. Total credit to the private business and individuals rose 18.3 billion rupees to 2,421.5 billion rupees. (Source: lankabusinessonline.com)

Sri Lanka is hoping to cut the budget deficit to 4.0 percent of gross domestic product and generate a 2.0 percent revenue surplus. Sri

Lanka ran a 6.4 percent of gross domestic product overall deficit in the budget in 2012 and a 1.4 percent revenue deficit before capital spending. In 2013 the overall budget deficit is planned to be 5.8 percent of gross domestic product with 0.1 percent marginal revenue deficit. In the first four months of 2013 Sri Lanka ran a revenue deficit of 1.8 percent of GDP and an overall deficit of 3.9 percent of GDP. (Source: lankabusinessonline.com)

Regional Market Focus

30 July 2013

7 of 14

Australia Confidence in the mining sector is in "free fall", with top executives displaying a gloomy outlook and slashing capital expenditure, an

influential report has warned. The 2013 Mining Business Outlook report by Newport Consulting has revealed a sharp negative shift in sentiment among industry leaders over the past year. It is also the first time in the report's four-year history that miners have declared they are reducing capital expenditure - not just postponing or moderately increasing it. (Source: The Australian)

Woolworth recorded a strong lift in full-year sales, buoyed by the strength of its Australian food and liquor businesses. In the 12 months to

June 30, Woolworths' total sales from continuing operations came in at $58.516 billion, a 6.8 per cent increase on the previous year's $54.777 billion. Total group sales in the year were $59.158, a lift of 4.3 per cent from $56.7 million. The strong result was driven by a significant lift in fourth-quarter sales. In the 12 weeks to June 30, Woolworths' sales from continuing operations totalled $14.056 billion, a 12.7 per cent increase on the $12.476 billion recorded in the previous corresponding period. Woolworths chief executive Grant O'Brien said the group's progress on its program of transformation had been rewarded with strong sales in the full year. (Source: The Australian)

The New South Wales government has called for expressions of interest to privatise the bulk of its remaining power-generation assets in

what could be one of the O'Farrell government's biggest asset sales. NSW Treasurer Mike Baird has called for expressions of interest for the sale of Macquarie Generation's two coal-fired Hunter Valley power stations, Liddell and Bayswater. Included in the sale are two development sites, one adjacent to the Bayswater power station with planning approval for a coal or gas-fired generator. The government is hoping for more than $2 billion for the generators, which produced earnings before interest, tax, depreciation and amortisation of $191 million last financial year. This included carbon tax costs of $298m. The sale process is certain to extend over the period of the next federal government, giving potential buyers some certainty. (Source: The Australian)

Regional Market Focus

30 July 2013

8 of 14

81.68 +0.03% 283.63 -0.29%

107.27 +0.01% 2.602 +0.04%

1,328.03 -0.15% 15,521.97 -0.24%

519.33 -0.88% MSCI SEA 868.57 -1.09%

2,741.73 -0.01% 51.4

Dollar Index

Gold (US$/Oz)

ThomReuters/JefferiesCRB

DJI

Crude oil, Brent (US$/bbl) US Treasury 10yr Yield

Euro Stoxx 50

Source: Bloomberg

MSCI Asia x-Japan

JPM Global Composite PMI SA

1.201.401.601.802.002.202.402.602.803.00

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

Jun

-13

700

750

800

850

900

950

1,000

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

Jun

-13

11,000

12,000

13,000

14,000

15,000

16,000

Jul-1

2

Au

g-

12

Se

p-

12

Oct-1

2

Nov-

12

Dec-

12

Jan

-13

Feb-

13

Mar-

13

Ap

r-13

May-

13

Jun

-13

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

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

Jun

-13

48

49

50

51

52

53

54

55

56

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

Jun

-13

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

Jun

-13

78

80

82

84

Ju

l-12

Au

g-1

2

Se

p-1

2

Oct-1

2

No

v-1

2

De

c-1

2

Ja

n-1

3

Fe

b-1

3

Mar-1

3

Ap

r-13

May-1

3

Ju

n-1

3

260

280

300

320

340

Ju

l-12

Au

g-1

2

Se

p-1

2

Oct-1

2

No

v-1

2

De

c-1

2

Ja

n-1

3

Fe

b-1

3

Mar-1

3

Ap

r-13

May-1

3

Ju

n-1

3

90

100

110

120

130

Ju

l-12

Aug-1

2

Sep-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Ja

n-1

3

Feb

-13

Ma

r-13

Apr-1

3

Ma

y-1

3

Ju

n-1

3

440

460

480

500

520

540

560

580

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

Jun

-13

Regional Market Focus

30 July 2013

9 of 14

Valuations of Major Regional Markets

14.7 1.44

13.7 2.30

10.4 1.39

15.0 2.82

14.5 1.99

Source: Bloomberg

Jakarta Stock Exchange Composite Index, P/B (X)

Straits Times Index, Forward P/E (X)

Hang Seng Index, Forward P/E (X)

Straits Times Index, P/B (X)

Stock Exchange of Thailand, Forward P/E (X) Stock Exchange of Thailand, P/B (X)

Jakarta Stock Exchange Composite Index,

Hang Seng Index, P/B (X)

S&P/ASX 200 Index, Forward P/E (X) S&P/ASX 200 Index, P/B (X)

10

12

14

16

18

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

1.0

1.2

1.4

1.6

1.8

2.0

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

1.0

1.5

2.0

2.5

3.0

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

8

10

12

14

16

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

1.01.21.41.61.82.02.2

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

8

10

12

14

16

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

2.22.42.62.83.03.23.43.6

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

10

12

14

16

18

20

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

1.4

1.6

1.8

2.0

2.2

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

8

10

12

14

16

18

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Regional Market Focus

30 July 2013

10 of 14

Source: Bloomberg

World Index

JCI -1.68% 4,580.47

HSI -0.54% 21,850.15

KLCI -0.49% 1,798.78

NIKKEI -3.32% 13,661.13

KOSPI -0.57% 1,899.89

SET -1.52% 1,454.28

SHCOMP -1.72% 1,976.31

SENSEX -0.78% 19,593.28

ASX 0.09% 5,046.33

FTSE 100 0.08% 6,560.25

DOW -0.24% 15,521.97

S&P 500 -0.37% 1,685.33

NASDAQ -0.39% 3,599.14 COLOMBO 0.09% 6,056.92

STI 0.03% 3,236.97

Regional Market Focus

30 July 2013

11 of 14

Date Statistic For Survey Prior Date Statistic For Survey Prior

7/30/2013 S&P/CS 20 City MoM SA May 0.0145 0.0172 7/31/2013 Unemployment Rate 2Q P 1.90% 1.90%

7/30/2013 S&P/CS Composite-20 YoY May 0.124 0.1205 7/31/2013 Credit Card Bad Debts Jun -- 22.6M

7/30/2013

S&P/CaseShiller Home Price Index

NSA May -- 15237.00% 7/31/2013 Credit Card Billings Jun -- 3571.2M

7/30/2013 Consumer Confidence Index Jul 8100.00% 8140.00% 7/31/2013 M1 Money Supply YoY Jun -- 0.154

7/31/2013 MBA Mortgage Applications 41481 -- -1.20% 7/31/2013 M2 Money Supply YoY Jun -- 0.099

7/31/2013 ADP Employment Change Jul 180K 188K 7/31/2013 Bank Loans and Advances YoY Jun -- 18.80%

7/31/2013

Bureau of Economic Analysis

Release Annual Revisions of GDP 8/1/2013 Electronics Sector Index Jul -- 5120.00%

7/31/2013 Employment Cost Index 2Q 0.004 0.003 8/1/2013 Purchasing Managers Index Jul -- 5170.00%

7/31/2013 GDP Annualized QoQ 2Q A 0.01 0.018 05-16 AUG GDP SAAR QoQ 2Q F -- 0.152

7/31/2013 Personal Consumption 2Q A 1.60% 2.60% 05-16 AUG GDP YoY 2Q F -- 0.037

7/31/2013 GDP Price Index 2Q A 0.01 1.20% 41493 Automobile COE Open Bid Cat A 41493 -- 7398900.00%

7/31/2013 Core PCE QoQ 2Q A 0.011 0.013 41493 Automobile COE Open Bid Cat B 41493 -- 7638900.00%

7/31/2013 ISM Milwaukee Jul 5200.00% 5155.00% 8/7/2013 Automobile COE Open Bid Cat E 7-Aug -- 76802

7/31/2013 Chicago Purchasing Manager Jul 54 5160.00% 8/7/2013 Foreign Reserves Jul -- $259.82B

8/1/2013 FOMC Rate Decision 41486 0.0025 0.0025 8/15/2013 Retail Sales Ex Auto YoY Jun -- 0.031

Date Statistic For Survey Prior Date Statistic For Survey Prior

7/31/2013 Exports YoY Jun -- -0.051 7/31/2013 Budget Balance HKD Jun -- -7.8B

7/31/2013 Exports Jun -- $19494M 7/31/2013 Money Supply M1 HKD YoY Jun -- 18.90%

7/31/2013 Imports YoY Jun -- -4.90% 7/31/2013 Money Supply M2 HKD YoY Jun -- 11.10%

7/31/2013 Imports Jun -- $18959M 7/31/2013 Money Supply M3 HKD YoY Jun -- 11.20%

7/31/2013 Trade Balance Jun -- $535M 8/1/2013 Retail Sales Value YoY Jun -- 12.80%

7/31/2013 BoP Current Account Balance Jun -- -$1051M 8/1/2013 Retail Sales Volume YoY Jun -- 0.122

7/31/2013 Overall Balance Jun -- $355M 8/5/2013 HSBC/Markit PMI Jul -- 48.7

7/31/2013 Business Sentiment Index Jun -- 53.9 8/7/2013 Foreign Reserves Jul -- $303.5B

8/1/2013 CPI NSA MoM Jul 0.0025 0.0015 8/16/2013 GDP SA QoQ 2Q -- 0.20%

8/1/2013 CPI YoY Jul 0.022 0.0225 8/16/2013 GDP YoY 2Q -- 2.80%

8/1/2013 CPI Core YoY Jul 0.0098 0.88% 8/19/2013 Unemployment Rate SA Jul -- 3.30%

8/2/2013 Foreign Reserves 41481 -- -- 8/19/2013 Composite Interest Rate Jul -- 0.32%

8/2/2013 Forward Contracts 41481 -- -- 8/20/2013 CPI Composite YoY Jul -- 0.041

8/8/2013 Consumer Confidence Economic Jul -- 71.8 8/27/2013 Exports YoY Jul -- -0.002

8/8/2013 Consumer Confidence Jul -- 81.6 8/27/2013 Imports YoY Jul -- 1.40%

US Singapore

Economic Announcement

Thailand Hong Kong

Source: Bloomberg

Source: BloombergSource: Bloomberg

Source: Bloomberg

Regional Market Focus

30 July 2013

12 of 14

Date Statistic For Survey Prior Date Statistic For Survey Prior

8/1/2013 HSBC-Markit Manufacturing PMI Jul -- 51 7/31/2013

Bloomberg July Sri Lanka Economic

Survey

8/1/2013 CPI YoY Jul -- 5.90% 7/31/2013 CPI Moving Average YoY Jul -- 8.60%

8/1/2013 Inflation NSA (MoM) Jul -- 1.03% 7/31/2013 CPI YoY Jul -- 6.80%

8/1/2013 Core Inflation (YoY) Jul -- 3.98% 05-28 AUG Exports YoY Jun -- -1.50%

8/1/2013 Exports (YoY) Jun -- -4.50% 05-28 AUG Imports YoY Jun -- -1.70%

8/1/2013 Total Imports (YoY) Jun -- -2.20% 8/8/2013 CBSL Repurchase Rate 8-Aug -- 7.00%

8/1/2013 Total Trade Balance Jun -- -$590M 8/8/2013 CBSL Reverse Repo Rate 8-Aug -- 9.00%

01-12 AUG Danareksa Consumer Confidence Jul -- 90.4 8/30/2013 CPI Moving Average YoY Aug -- --

01-12 AUG Consumer Confidence Index Jul -- 117.1 8/30/2013 CPI YoY Aug -- --

01-12 AUG Money Supply - M1 (YoY) Jun -- 9.80% 05-28 SEP Exports YoY Jul -- --

01-12 AUG Money Supply - M2 (YoY) Jun -- 14.40% 05-28 SEP Imports YoY Jul -- --

02-12 AUG GDP YoY 2Q -- 6.02% 16-30 SEP GDP YoY 2Q -- 6.00%

02-12 AUG GDP Constant Price (QoQ) 2Q -- 1.41% 9/17/2013 CBSL Repurchase Rate 17-Sep -- --

02-12 AUG Foreign Reserves Jul -- $98.10B 9/17/2013 CBSL Reverse Repo Rate 17-Sep -- --

02-12 AUG Net Foreign Assets (IDR Tln) Jul -- 940.33T 9/30/2013 CPI Moving Average YoY Sep -- --

Date Statistic For Survey Prior7/30/2013 Building Approvals MoM Jun -- -1.10%

7/30/2013 Building Approvals YoY Jun -- -3.20%

7/31/2013 Private Sector Credit MoM Jun -- 0.30%

7/31/2013 Private Sector Credit YoY Jun -- 3.00%

8/1/2013 AiG Perf of Mfg Index Jul -- 49.6

8/1/2013 RPData-Rismark House PX Actual Jul -- --

8/1/2013 HIA New Home Sales (MoM) Jun -- 1.60%

8/1/2013 Import price index (QoQ) 2Q -- 0.00%

8/1/2013 Export price index QoQ 2Q -- 2.80%8/1/2013 Commodity Index AUD Jul -- 88.9

8/1/2013 Commodity Index YoY Jul -- -10.50%

01-07 AUG Retail Sales Ex Inflation(QoQ) 2Q -- 2.20%

8/2/2013 Producer Price Index (QoQ) 2Q -- 0.30%

8/2/2013 Producer Price Index (YoY) 2Q -- 1.60%

8/5/2013 TD Securities Inflation MoM% Jul -- 0.00%

Source: Bloomberg

Indonesia

Australia

Sri Lanka

Source: BloombergSource: Bloomberg

PHILLIP RESEARCH STOPHILLIP RESEARCH STOPHILLIP RESEARCH STOPHILLIP RESEARCH STOCK SELECTION SYSTEMSCK SELECTION SYSTEMSCK SELECTION SYSTEMSCK SELECTION SYSTEMS

We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors like (but not limited to) a stock's risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final recommendation

GENERAL DISCLAIMERGENERAL DISCLAIMERGENERAL DISCLAIMERGENERAL DISCLAIMER

This publication is prepared by Phillip Securities (Hong Kong) Ltd (“Phillip Securities”). By receiving or reading this publication, you agree to be bound

by the terms and limitations set out below.

This publication shall not be reproduced in whole or in part, distributed or published by you for any purpose. Phillip Securities shall not be liable for any

direct or consequential loss arising from any use of material contained in this publication.

The information contained in this publication has been obtained from public sources which Phillip Securities has no reason to believe are unreliable

and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in this publication are based on such

information and are expressions of belief only. Phillip Securities has not verified this information and no representation or warranty, express or implied,

is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research

contained in this publication is subject to change, and Phillip Securities shall not have any responsibility to maintain the information or Research made

available or to supply any corrections, updates or releases in connection therewith. In no event will Phillip Securities be liable for any special, indirect,

incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of

the possibility of such damages.

Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this material are as of the date indicated and are subject to

change at any time without prior notice.

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 financial adviser regarding 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.

This publication should not be relied upon as authoritative without further being subject to the recipient’s own independent verification and exercise of

judgment. The fact that this publication has been made available constitutes neither a recommendation to enter into a particular transaction nor a

representation that any product described in this material is suitable or appropriate for the recipient. Recipients should be aware that many of the

products which may be described in this publication involve significant risks and may not be suitable for all investors, and that any decision to enter

into transactions involving such products should not be made unless all such risks are understood and an independent determination has been made

that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a

disclosure of all risks or a complete discussion of such risks.

Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of a security. Any decision to purchase securities

mentioned in this research should take into account existing public information, including any registered prospectus in respect of such security.

Disclosure of InterestDisclosure of InterestDisclosure of InterestDisclosure of Interest Analyst Disclosure: Neither the analyst(s) preparing this report nor his associate has any financial interest in or serves as an officer of the listed

corporation covered in this report.

Firm’s Disclosure: Phillip Securities does not have any investment banking relationship with the listed corporation covered in this report nor any

financial interest of 1% or more of the market capitalization in the listed corporation. In addition, no executive staff of Phillip Securities serves as an

officer of the listed corporation.

AvailabilityAvailabilityAvailabilityAvailability 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 to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction.

Information contained herein is based on sources that Phillip Securities (Hong Kong) Limited (“PSHK”) believed to be accurate. PSHK does not bear

responsibility for any loss occasioned by reliance placed upon the contents hereof. PSHK (or its affiliates or employees) may have positions in

relevant investment products. For details of different product's risks, please visit the Risk Disclosures Statement on http://www.phillip.com.hk.

© 2013 Phillip Securities (Hong Kong) Limited

Total ReturnTotal ReturnTotal ReturnTotal Return RecommendationRecommendationRecommendationRecommendation RatingRatingRatingRating RemarksRemarksRemarksRemarks >+20%>+20%>+20%>+20% BuyBuyBuyBuy 1111 >20% upside from the current price>20% upside from the current price>20% upside from the current price>20% upside from the current price

+5% to +20%+5% to +20%+5% to +20%+5% to +20% AccumulateAccumulateAccumulateAccumulate 2222 +5% to +20%upside from the curren+5% to +20%upside from the curren+5% to +20%upside from the curren+5% to +20%upside from the current pricet pricet pricet price ----5% to +5%5% to +5%5% to +5%5% to +5% NeutralNeutralNeutralNeutral 3333 Trade within ± 5% from the current priceTrade within ± 5% from the current priceTrade within ± 5% from the current priceTrade within ± 5% from the current price ----5% to 5% to 5% to 5% to ----20%20%20%20% ReduceReduceReduceReduce 4444 ----5% to 5% to 5% to 5% to ----20% downside from the current price20% downside from the current price20% downside from the current price20% downside from the current price

<<<<----20%20%20%20% SellSellSellSell 5555 >20%downside from the current price>20%downside from the current price>20%downside from the current price>20%downside from the current price

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

PhillipCapital Japan K.K.

Nagata-cho Bldg.,

8F, 2-4-3 Nagata-cho,

Chiyoda-ku, Tokyo 100-0014

Tel (81-3) 35953631

Fax (81-3) 35953630

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

PhillipCapital Australia

Level 37, 530 Collins Street, Melbourne, Victoria 3000, Australia

Tel (613) 96298380 Fax (613) 96148309

Website: www.phillipcapital.com.au