MCI (P) 137/11/2012 Ref No: RM2013_0073 1 of 16

Regional Market Focus

Phillip Securities Research Pte Ltd

17 April 2013

Singapore

M1 – Results Recommendation: Neutral Previous close: S$3.00 Fair value: S$2.58

1.7% y-y increase in Net Income, Service revenue healthy with 4.1% y-y growth

Positive on 11% of re-contracting customers upgrading to higher tiered postpaid plans

Maintain Neutral, with new TP of S$2.58. Wilmar International Ltd - Acquires 27.5% stake in Cosumar Recommendation: Neutral Previous close: S$3.27 Fair value: S$3.79

Acquisition of 27.5% stake in Cosumar for MA$2.3bn

Impact should remain insignificant in the near term

Maintain Neutral rating SGX– Results Recommendation: Accumulate Previous close: S$7.70 Fair value: S$8.00

SGX reported 5-year record high 3Q13 net profit of S$97.7 million and Total revenue of S$190.6 million.

Securities and Derivatives revenue positive on improved market sentiments, wide variety of attractive offerings, and solid infrastructure

Maintain “Accumulate” with TP of S$8.00, based on unchanged PE multiple of 26X FY13 earnings.

Thailand

Thai Tap Water – Company Preview Recommendation: ACCUMULATE Previous close: Bt10.60 Fair value: Bt11.10

TTW is expected to report a 14.37% y-y drop in 1QCY13 net profit due to the likely absence of tax refund from its subsidiary PTW. It remains unclear whether there would be such tax refund in 1QCY13.

The waste-to-energy power plant project is likely to be concluded in the middle of this year with an initial investment budget of around Bt1bn.

We rate TTW shares an ‘ACCUMULATE’ with a DCF-based target price of Bt11.10/share.

Regional Market Focus

17 April 2013

2 of 16

Hong Kong

NewOcean Energy (342 HK) Review of annual report Recommendation: Buy Previous Close: HKD 5.36 Fair Value: HKD 6.39

In 2012, the company earned HK$ 13.462 billion in revenues, a 33.1% increase compared to HK$10.117 billion in 2011. Net profit attributed to

shareholders reached HK$ 0.811 billion, up 164.9% from HK$ 0.306 billion in 2011.

LPG operating revenues in 2012 reached HK$ 11.57 billion, up 26.1% yoy. The gross profit increased to HK$ 0.923 billion from HK$ 0.557 billion in 2011.

On April 12, the management team revealed that the company had signed a cooperation agreement with SINOPEC Guangdong Oil Products Company to jointly establish SINOPEC NewOcean Energy Holdings Limited.

The favorable news that the company’s earnings per share substantially increased by 164.9% in year 2012 quickly reflected in its performance at the market, with share price of company continue to climb.

We raise the target price of the company to HK$ 6.39 with its 12-month integrated yield rate likely to reach 20.1%, and see the stock at buy rating.

Regional Market Focus

17 April 2013

3 of 16

Strategy

- Country Strategy: Thai, 5 Apr / S’pore, 8 Mar / China & HK, 28 Jan - Global Macro, Asset Strategy: 12 Apr, Update / US, 20 Mar / 4 Mar, Update / ASEAN, 5 Dec

Morning Commentary - STI: +0.22% to 3291.6 - SET: +0.69% to 1527.3 - JCI: +1.04% to 4945.3 - KLCI: +0.16% to 1700.53 - HSCEI: -0.14% to 10426.6 - Hang Seng: -0.46% to 21672 - Nikkei 225: -0.41% to 13221.4 - ASX200: -0.60% to 3323.5 - India NIFTY: +2.16% to 5688.95 - S&P500: +1.43% to 1574.6 MARKET OUTLOOK: By Ng Weiwen, Macro Analyst Black grizzly bears are still on the roam and we probably have not seen the last of them- yet- notwithstanding yesterday’s bargain hunting and bounce. Apart from a fragile economic recovery, geopolitical tensions are elevated. Specifically, North Korea has issued an ultimatum that a strike will occur without advance notice. Thinking aloud, with gold in the doldrums, which assets will be the new safe haven? The likes of SG sovereigns - which has a prized AAA rating- comes to mind. The next major event risk is the presidential election by Italian Parliament (this Thurs) to resolve the political gridlock. Already, centre-left Bersani (who fell short of attaining a majority in the recent elections) and tainted ex-PM Berlusconi have met to hammer out a deal. Without a proper government in place yet, we caution that Italy is not able to deal effectively with the crisis. On Tues, the S&P 500 and DJIA rebounded -partly paring Mon's losses- on the back of better-than-expected macro data (housing starts, industrial production) as well as stronger-than-expected earnings reported (by Goldman Sachs, BlackRock, Coca-Cola and Johnson & Johnson). The Nikkei slipped (albeit slightly) as USD/JPY likely succumbed to profit taking during Tues Tokyo session. Pullbacks will serve as an opportunity to accumulate long positions in Japan (Nikkei, Topix). Our base case has been that so long as the USDJPY continues to march towards (better if it clears above) the psychological 100 level, the Nikkei will continue to rise higher. Reckon USD/JPY is likely to retest the 99.95 level (11th Apr 2013 high) before challenging the psychological 100 level. Key support pegged at 95 psychological level. But it is important to remember that for a structural bull run in Japan, we need structural micro reforms! After clocking in weak economic growth for 1q13, the new Chinese leadership needs to translate rhetoric to concrete reforms, otherwise markets –if left disappointed- will certainly not spare the rod. Near-term downward bias for the HSI and HSCEI as both indices remain mired in a bearish moving average crossover. HSCEI has slipped below its 200dma support level (10.5k level). HSI is likely to challenge its key 200dma support at 21.5k level , with any upward bounce likely to be capped by the 10dma resistance level. STI has remained resilient and continued to consolidate in a tight range, consistent with our earlier guidance. We are cautiously optimistic that the STI will likely challenge the 3320 resistance (followed by the psychological 3400 hurdle) so long as it stays above key support at 3250. (All equity indices mentioned in this note are tradeable with Phillip CFDs or ETFs)

MACRO DATA: In US, industrial production rose 0.4% m-m sa in March. But details beyond the headline number were less favourable. The stronger industrial production growth was largely due to the boost from weather-related gain in utilities. In fact, manufacturing inched down 0.1%. On the housing front, housing starts surged above 1mn units (almost a 5yr high) during March. Separately, consumer prices declined eased from 2.0% y-y in Feb to 1.5% y-y in March on account of lower energy and agriculture prices. (by Ng Weiwen) In Euro zone, CPI grew by 1.2% m-m in Mar, after the 0.4% gain in Feb. On y-y basis, CPI rose by 1.7% y-y in Mar, meeting the market expectation, the same pace as in Feb. ECB President Mario Draghi said on April 4 that “inflation expectations are firmly anchored and in line with price stability over the medium to long term.”A separate report shows that the economic sentiment for the region fell to 24.9 in Apr from 33.4 in Mar, indicating a worsening confidence. In Germany, Euro zone’s biggest economy, the sentiment index fell from 48.5 in Mar to 36.3 in Apr, trailing the market expected 41.0, stirring up some concern the region’s largest might have difficulty maintaining the recovery momentum. (by Roy Chen) In UK, PPI rose by 0.3% m-m in Mar, after the 0.8% m-m gain in Feb. On y-y basis, PPI rose by 2.0%, compared to the 2.3% y-y gain in Feb. Inflation stayed at 2.8% in Mar, the same as Feb. While the government has broadened the BOE’s scope to add to stimulus even as inflation remains above its 2% goal, a majority of the Monetary Policy Committee voted to maintain the size of the bond-purchase plan this month. (by Roy Chen)

Regional Market Focus

17 April 2013

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Singapore The benchmark STI closed +7.21 points higher to end at 3,291.58 (+0.22%).

There were 3.3bn shares traded worth S$1.6bn in value. The top active stocks include Singtel (+1.40%), DBS (-0.13%), GoldenAgr (-

1.80%), Kep Corp (-0.35%), and Ascendasreit (-3.50%). Top picks for the year are Pan United (Buy, TP: S$1.21), SIAEC (Buy, TP:

S$6.10) & Boustead Singapore (Buy, TP: S$1.80). Pan United is a dominant supplier to the construction industry in Singapore and we expect the company to perform well given the strong pipeline of infrastructure work over the next few years. SIAEC is a key beneficiary of the aviation growth story in the region and offers excellent dividend yields. There are hidden gems within Boustead Singapore and we believe that the stock would continue to re-rate as the market appreciates the economic moat in its businesses.

Close +/- % +/-FSSTI 3291.58 7.21 0.22P/E (x) 13.17P/Bv (x) 1.50

3.00Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

3500

4/16 7/16 10/16 1/16 4/16

Source: Bloomberg

Thailand Thai stocks traded choppy in a narrow range last Fri though the SET index spent

most of the session in positive rather than negative territory led by buying in telecoms counters.

Thai stocks are likely to continue a roller-coaster ride with a bearish bias after the long holidays Songkran Festival due to 1) a plunge in the broad US stock markets last Monday following China’s weaker-than-expected GDP and the dual explosions at Boston Marathon; 2) a tumble in commodities for a third consecutive day, particularly gold which bottomed in response to Cyprus gold selloff; and 3) a close watch on the court battle over the Preah Vihear dispute and a speed-up to vote for the amnesty bill by the Pheu Thai party which would trigger a mob from the opposing parties.

If the US stock markets and gold would stage a rebound today, Thai stock is likely to come under pressure of a downside risk. We advise investors to buy on weakness, particularly domestic plays.

Close +/- % +/-SET INDEX 1527.32 10.51 0.69P/E (x) 17.59P/Bv (x) 2.50

2.81Dividend Yield

STOCK EXCH OF THAI INDEX

900

1000

1100

1200

1300

1400

1500

1600

1700

4/17 7/17 10/17 1/17

Source: Bloomberg

Indonesia

The Jakarta Composite Index (JCI) pared early session loss on Tuesday (16/04), and closed significantly higher at 4,945.253, up 50.661 points, or 1.04% for the day. The increase was supported by all but two major sectors, with commodity sectors fared worst and infrastructure sector performed best. The index of Infrastructure sector surged 2.67%, Miscellaneous Industry gained 1.74%, and Basic Industry sector climbed 1.49%. The LQ45 index rose 12.823 points, or 1.55%, at 838.421, with 26 of the 45 blue-chip components closed in positive zone. 148 shares finished in red, 109 shares advanced, and 214 shares stagnated Tuesday on the Indonesia Stock Exchange. Regular market volume reached 3.94 billion shares valued at IDR 4.95 trillion. Foreign investors accumulated net sales of IDR 329.06 billion.

Indonesian stocks will likely climb today, on the back of global positive sentiments after a day of rallies on the US markets, and higher starts in Asia this morning. Upbeat US housing data would also lift sentiments in Asia and Indonesia today. We expect the Jakarta Composite Index (JCI) to trade higher, with support and resistance at 4,826 and 4,975, respectively.

Close +/- % +/-JCI Index 4945.25 50.66 1.04P/E (x) 19.25P/Bv (x) 3.13

1.89Dividend Yield

JAKARTA COMPOSITE INDEX

3400

3900

4400

4900

5400

4/17 7/17 10/17 1/17

Source: Bloomberg

Regional Market Focus

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Sri Lanka The bourse ended the day displaying an extended positive image continuing the

forward drive witnessed during the past three trading days. This attributed both indices to maintain its stay within the green spaces. The Benchmark All share price Index augmented 12.80 points or 0.22% to close at 5,852.68, the highest recorded index value after the 28th of January 2013. The S&P too comfortably ended within the green territory at 3,351.57 having gained 18.03 points or 0.54%. The Market Capitalization stood at LKR 2.24Tn at the closure, resulting YTD gain of 3.44%. The Market PER and PBV were noted as 15.81 and 2.15 respectively. Crossings totaling up to LKR 1.27Bn were logged during the day while providing a circa of 80.63% to the daily summative turnover LKR 1.58Bn; additionally, the turnover was a massive increase of 447.75% against the previous trading day. BFI sector was most preferred during the day witnessing 2,042 trades out of the total 5,549 trades. DIV (Diversified Holdings) seized the second place having provided LKR 57.94Mn and both sectors BFI and DIV together accounted to a substantial 95.32% of the daily turnover. A total of 64.65Mn shares changed hands during the day resulting in a rise of 134.44% against the prior trading day. Price gainers outstripped the price losers by 115:67. Foreign participants appeared to be bullish for the 11th successive trading day recording purchases worth LKR 1.33Bn and sales worth 696Mn which in turn resulted in a net foreign inflow of LKR 637.87Mn; this extended the YTD net foreign inflow (LKR 7.11Bn) to cross the LKR 7Bn mark for the 1st time during the year. In regard to the local FOREX market the USD closed the day at LKR 127.04/- selling and LKR 124/- buying.

Close +/- % +/-CSEALL Index 5852.68 12.80 0.22P/E (x) 11.63P/Bv (x) 1.72

2.77

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

4700

4900

5100

5300

5500

5700

5900

6100

4/17 7/17 10/17 1/17

Source: Bloomberg

Australia The Australian stock market moved downwards on Tuesday, with the benchmark

S&P/ASX200 index dropping 0.34 per cent to 4,950.8 points. Today (17/04/12), the Australian market looks set to open firmer after a positive

finish on Wall Street and a rebound in commodities prices. The SFE Futures 200 is pointing upwards 48 points or 0.97 per cent to 4,994.

In economics news on Wednesday, the Australian Bureau of Statistics will release merchandise imports figures for March, while the Housing Industry Association is due to release its December quarter residential land report. The Westpac-Melbourne Institute's leading index of economic activity is also due out.

In company news, miner BHP Billiton releases its March quarter production report, while Atlas Iron will publish its March quarter results.

Close +/- % +/-S&P/ASX 200 INDEX 4950.85 -17.06 -0.34P/E (x) 20.56P/Bv (x) 1.96

5.76

STANDARD & POORS/ ASX 200 INDEX

Dividend Yield

3800

4000

4200

4400

4600

4800

5000

5200

5400

4/17 7/17 10/17 1/17

Source: Bloomberg

Hong Kong

Local stocks fell. The HSI and HSCEI dropped 101 points and 14 points to 21672 and 10427 respectively.

We believe the market is going to rebound due to China’s CPI in March is lower than market expected and stocks recovered, especially for the Mainland insurance and cement sectors, investors expected the level of tighten monetary policy will not be further enhanced, we believe HSI will start a wave of rebound in short term.

However investors are suggested to maintain attention to the development of two Korea conflicts, which is a major uncertainty to the market recently, we suggest a cautious bullish view in short term.

Technically, the HSI is expected to gain a support from 21500 level, major resistance will be 22300 level.

Close +/- % +/-HSI INDEX 21672.03 -100.64 -0.46P/E (x) 10.30P/Bv (x) 1.39

3.30Dividend Yield

HANG SENG INDEX

17000

18000

19000

20000

21000

22000

23000

24000

25000

4/17 7/17 10/17 1/17

Source: Bloomberg

Regional Market Focus

17 April 2013

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Market News

US New-home construction in the U.S. climbed in March to the highest level in almost five years, propelled by a surge in multifamily building

that will support economic growth. Starts (NHSPSTOT) climbed 7 percent to a 1.04 million annual rate, the most since June 2008, from a revised 968,000 pace in February that was larger than previously reported, according to Commerce Department figures issued today in Washington. Other reports showed consumer prices unexpectedly dropped last month and factory production cooled. Near record-low mortgage rates and pent-up demand for rental units will keep residential construction a pillar of the expansion as concern grows that mandated cuts in planned federal spending will slow the world’s largest economy. A lack of inflation also means the Federal Reserve can keep pumping money into financial markets to help stem any slackening. Stocks advanced, with the benchmark Standard & Poor’s 500 Index rebounding from its biggest drop since November, as the construction data and corporate earnings topped estimates. The S&P 500 added 1.4 percent, the most since Jan. 2, to 1,574.57 at the close in New York. Gold rebounded from the biggest drop in 33 years as BlackRock Inc. said the selling didn’t reflect fundamentals. Gold futures for June delivery rose 1.9 percent to close at $1,387.40 an ounce on the Comex in New York. (Source: Bloomberg)

Intel Corp. (INTC) (INTC), the world’s largest semiconductor maker, forecast second-quarter sales that may exceed some analysts’ estimates as strong demand for server chips helps make up for a slump in the personal-computer market. Revenue in the current period will be as much as $13.4 billion, the Santa Clara, California-based company said today in a statement. Analysts (INTC) on average had predicted sales of $12.8 billion, according to data compiled by Bloomberg. Intel dominates the market for chips that run corporate networks, and its introduction of more powerful products has squeezed Advanced Micro Devices Inc. (AMD), its only rival in that business, down to less than a 5 percent share. Those gains in processors for data centers have helped blunt the impact of declining PC sales, which caused Intel to report a third straight decline in quarterly revenue today. Intel shares, up 6.3 percent this year, rose in extended trading following the announcement. They had earlier closed up 2.5 percent at $21.92. (Source: Bloomberg)

Singapore Singapore's non-oil domestic exports (NODX)) fell again in March, though the decline has eased from a 30.6 per cent fall in February to

a 4.8 per cent year on year drop last month. But growth momentum may be picking up as the NODX in March rose a seasonally-adjusted 8.0 per cent from a month ago, according to the government's trade promotion agency International Enterprise this morning. Non-oil retained imports of intermediate goods (NORI), a leading indicator, also rose from S$5.5 billion in February to S$5.6 billion in March. IE Singapore said the year-on-year fall last month was due to the contraction in electronic NODX which outweighed the increase in non-electronic Nodx. (Source: Business Times Online)

MORE small and medium-sized enterprises (SMEs) are settling their debts on time, trade payment data for the first quarter released by DP SME Commercial Credit Bureau showed. The data, covering over 120,000 SMEs in Singapore, revealed that 15 per cent of debts went unpaid after 90 days last quarter. This compares with 29 per cent and 16 per cent in Q3 and Q4 last year, respectively. Explaining the decline in the level of severely delinquent debt, DP Information Group senior general manager Ong Siew Kim said companies "tended to be better payers towards the end of the financial year", and that such improvements were regular during this period. Aside from cyclical fluctuations, Ms Ong said SMEs were more active in pursuing debts, engaging either professional receivables firms or their in-house accounts staff. She noted that SMEs with constrained manpower were increasingly opting to outsource collections, in order to focus their limited talent on growing their business. (Source: Business Times Online)

Thailand

The Bank of Thailand last Fri raised its 2013 GDP growth forecast to 5.1% from 4.9%, citing better-than-expected economic expansion in 4Q12 and higher-than-expected public spending though it trimmed its 2013 export growth forecast to 7.5% from 9%. The central bank also cut its 2013 core and headline inflation forecasts to 1.6% and 2.7% from 1.7% and 2.8% respectively. (Source: Bisnews)

Kasikorn Research Center forecasts foreign tourism revenue will top Bt80bn in Apr 2013. Foreign tourists are expected to spend nearly Bt30bn during the Songkran period of Apr 12-16 with much of the spending going to accommodation, shopping as well as food and drink. (Source: Matichon Online)

Hong Kong

Chinese President Xi Jinping’s campaign to rein in lavish spending by officials and state-owned companies is proving so effective that it risks helping end the nation’s economic rebound after one quarter. Bank of America Corp. is among 11 of 40 respondents in a Bloomberg News survey who estimate first-quarter expansion was at or below the previous period’s 7.9 percent pace. The world’s second-largest economy probably grew 8 percent in the January- March period from a year earlier, according to the median forecast ahead of data due April 15 in Beijing, down from an 8.2 percent projection in February. (Source: Bloomberg)

Sands China Ltd. (1928), the Macau casino operator controlled by billionaire Sheldon Adelson, said it expects 2013 gaming revenue for

the Chinese territory to exceed last year, helped by more hotel rooms and rail services. Macau’s casino revenue growth rate should be in the “mid- teens” this year and higher than 2012, Chief Executive Officer Edward Tracy said in an interview in the city yesterday. (Source: Bloomberg)

Indonesia The Indonesian central bank (Bank Indonesia /BI) governor said the central bank has already prepared calculations for inflation in case

the government issued a decision on subsidized oil. His made the statement in response to the government`s plan to issue a decision on controlling the use of subsidized gasoline soon to reduce deficit. Meanwhile the government has set the oil subsidy at IDR 274.7 trillion in

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the 2013 budget consisting of IDR 80.9 trillion for electricity subsidy and IDR 193.8 trillion for fuel oil subsidy. The volume of subsidized fuel oils meanwhile has been set at 46 million kilo liters but it is predicted to reach 53 million kilo liters and therefore to affect fiscal conditions unless control is done. The government is still studying the options which a number of analysts have said would different impacts on inflation and budget reduction. (Source: Antara News)

Finance Minister said on Monday the government`s policy to control the use of subsidized fuels also had considered global economic uncertainty. Thus, he added that the government was careful in deciding the best option to control the use of subsidized fuels, the more so because the country`s current account and budget were still experiencing a deficit. The government would likely choose the option to reduce the use of subsidized fuels by affluent people and provide subsidy to those entitled to it. The subsidy for the poor will be maintained, while the subsidy for the rich or those that are not entitled to it will be reduced. (Source: Antara News)

Sri Lanka Sri Lanka held policy rates steady amid heavy demand for bank credit from the state but expected economic activity to pick up after state

borrowing reduce helped by an electricity tariff hike. The Central Bank in its April monetary policy review kept policy rates at 7.5 percent to 9.5 percent saying heavy state borrowing from the banking system was still crowding out private sector borrowings. In February 36.7 billion rupees had been borrowed from the banking system. Private businesses had also borrowed 18.7 billion rupees. A slowing economy and reduced imports had hit government revenues in the wake of a balance of payments crisis, triggered by central bank accommodated credit to fund losses in state energy utilities. Sri Lanka's power regulator is expected to raise tariffs later this week. Meanwhile better rains had also improved hydro power generation which would also help reduce losses in state energy enterprises. Keeping interest rates high enough to match credit demand, whether from the state or private sector would curb consumption and generate savings, keeping the economy, inflation, the balance of payments and the exchange rate stable. Inflation had eased to 7.5 percent in March as forecast. (Source: lbo.lk)

Australia Bhp Billiton held to production guidance for its biggest businesses as it continues to ramp-up operations spanning remote iron ore

deposits in Western Australia and shale oil fields in the southern US. BHP, the world's third-largest iron ore producer after Vale and Rio Tinto, said its output of the steelmaking commodity rose 6 per cent on year to 40.2 million metric tonnes in the three months through March. That was achieved in spite of tropical cyclones halting shipping from Australian ports. (Source: The Australian)

Incitec Pivot has approved construction of a $US850 million ($818.8 million) ammonia plant in Louisiana, taking advantage of low energy costs driven by a boom in US shale gas production. The company said its Dyno Nobel explosives division had entered into a contract with KBR for the engineering company to build the plant and licence to Dyno Nobel its ammonia technology. Ammonia is used in the production of explosives. (Source: The Australian)

The complexity of Labor's mining tax forced Treasury's brightest boffins to yell for help from consultants, who explained it with seven tangled "noodle nation" diagrams. The whiteboard diagrams, reminiscent of the "knowledge nation" diagrams that troubled Labor a decade ago, illustrate the bureaucratic pain behind the budget gain from the minerals resource rent tax. (Source: The Australian)

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17 April 2013

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81.75 -0.81% 283.23 +0.82%

100.36 -2.19% 1.722 +0.04%

1,367.89 +0.46% 14,756.78 +1.08%

532.31 +0.41% MSCI SEA 924.48 +0.35%

2,609.30 -0.59% 53.1

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

1.20

1.40

1.60

1.80

2.00

2.20

2.40

Ap

r-12

May-1

2

Jun

-12

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

700

750

800

850

900

950

Ap

r-12

May-1

2

Jun

-12

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

11,000

12,000

13,000

14,000

15,000

16,000

Ap

r-12

May-

12

Jun

-12

Jul-1

2

Au

g-

12

Se

p-

12

Oct-1

2

Nov-

12

Dec-

12

Jan

-13

Feb-

13

Mar-

13

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

Ap

r-12

May-1

2

Jun

-12

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

48

49

50

51

52

53

54

55

56

Ap

r-12

May-1

2

Jun

-12

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

1,500

1,600

1,700

1,800

Ap

r-12

May-1

2

Jun

-12

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

78

80

82

84

Ap

r-12

May-1

2

Ju

n-1

2

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

260

280

300

320

340

Ap

r-12

May-1

2

Ju

n-1

2

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

90

100

110

120

130

Apr-1

2

Ma

y-1

2

Ju

n-1

2

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

440

460

480

500

520

540

560

580

Ap

r-12

May-1

2

Jun

-12

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

Regional Market Focus

17 April 2013

9 of 16

Valuations of Major Regional Markets

14.8 1.50

14.1 2.50

10.4 1.39

15.8 3.13

15.3 1.97

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

De

c-…

Fe

b-1

0

Ap

r-10

Jun-1

0

Au

g-…

Oct-1

0

De

c-…

Fe

b-1

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Regional Market Focus

17 April 2013

10 of 16

Source: Bloomberg

World Index

JCI 1.04% 4,945.25

HSI -0.46% 21,672.03

KLCI 0.16% 1,700.53

NIKKEI -0.41% 13,221.44

KOSPI 0.09% 1,922.21

SET 0.69% 1,527.32

SHCOMP 0.59% 2,194.85

SENSEX 2.11% 18,744.93

ASX -0.34% 4,950.85

FTSE 100 -0.62% 6,304.58

DOW 1.08% 14,756.78

S&P 500 1.43% 1,574.57

NASDAQ 1.50% 3,264.63 COLOMBO 0.22% 5,852.68

STI 0.22% 3,291.58

Regional Market Focus

17 April 2013

11 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior

4/17/2013 MBA Mortgage Applications 12-Apr -- 4.50% 4/17/2013 Electronic Exports (YoY) Mar -8.50% -27.40%

4/18/2013U.S. Federal Reserve Releases

Beige Book4/17/2013 Non-oil Domestic Exports (YoY) Mar -5.40% -30.60%

4/18/2013 Initial Jobless Claims 13-Apr 350K 346K 4/17/2013 Non-oil Domestic Exp SA (MoM) Mar 4.00% -2.40%

4/18/2013 Continuing Claims 6-Apr 3075K 3079K 4/23/2013 CPI (MOM) - NSA Mar -- 1.00%

4/18/2013 Bloomberg Economic Expectations Apr -- -4 4/23/2013 CPI (YoY) Mar -- 4.90%

4/18/2013 Bloomberg Consumer Comfort 14-Apr -- -34 4/24/2013 Automobile COE Open Bid Cat A 24-Apr -- 61029

4/18/2013 Philadelphia Fed. Apr 3 2 4/24/2013 Automobile COE Open Bid Cat B 24-Apr -- 67010

4/18/2013 Leading Indicators Mar 0.10% 0.50% 4/24/2013 Automobile COE Open Bid Cat E 24-Apr -- 66989

4/22/2013 Chicago Fed Nat Activity Index Mar -- 0.44 4/26/2013 Industrial Production MoM SA Mar -- -0.70%

4/22/2013 Existing Home Sales Mar 5.01M 4.98M 4/26/2013 Industrial Production YoY Mar -- -16.60%

4/22/2013 Existing Home Sales MoM Mar 0.60% 0.80% 4/29/2013 Unemployment Rate (sa) 1Q P -- 1.80%

4/23/2013 Markit US PMI Preliminary Apr 54.5 -- 4/30/2013 M1 Money Supply (YoY) Mar -- 14.00%

4/23/2013 House Price Index MoM Feb -- 0.60% 4/30/2013 M2 Money Supply (YoY) Mar -- 9.70%

4/23/2013 Richmond Fed Manufact. Index Apr -- 3 4/30/2013 Credit Card Bad Debts Mar -- 19.3M

4/23/2013 New Home Sales Mar 420K 411K 4/30/2013 Credit Card Billings Mar -- 2953.2M

Date Statistic For Survey Prior Date Statistic For Survey Prior

17-19 APR Total Car Sales Mar -- 129910 4/18/2013 Unemployment Rate SA Mar -- 3.40%

4/19/2013 Foreign Reserves 12-Apr -- $177.9B 4/18/2013 Composite Interest Rate Mar -- 0.25%

41383 Forward Contracts 41376 -- $23.5B 4/22/2013 CPI - Composite Index (YoY) Mar -- 4.40%

25-27 APR Customs Exports (YoY) Mar -- -0.0583 4/25/2013 Exports YoY% Mar -- -16.90%

25-27 APR Customs Imports (YoY) Mar -- 0.0527 4/25/2013 Imports YoY% Mar -- -18.30%

25-27 APR Customs Trade Balance Mar -- -$1557M 4/25/2013 Trade Balance Mar -- -34.0B

41390 Foreign Reserves 41383 -- -- 4/30/2013 Govt Mthly Budget Surp/Def HK$ Mar -- -6.2B

41390 Forward Contracts 41383 -- -- 4/30/2013 Money Supply M1 - in HK$ (YoY) Mar -- 13.60%

4/26/2013Mfg. Production Index ISIC NSA

(YoY)Mar -- -1.2 4/30/2013 Money Supply M2 - in HK$ (YoY) Mar -- 8.50%

4/26/2013 Mfg. Production Index ISIC SA Mar -- 175.11 4/30/2013 Money Supply M3 - in HK$ (YoY) Mar -- 8.50%

4/26/2013 Total Capacity Utilization ISIC Mar -- 62.9 5/2/2013 Retail Sales - Value (YoY) Mar -- 22.70%

4/30/2013 Total Exports YOY% Mar -- -0.046 5/2/2013 Retail Sales - Volume (YoY) Mar -- 21.90%

4/30/2013 Total Exports in US$ Million Mar -- $17766M 5/3/2013 Purchasing Managers Index Apr -- 50.5

4/30/2013 Total Imports YOY% Mar -- 3.70% 5/7/2013 Foreign Currency Reserves Apr -- --

4/30/2013 Total Imports in US$ Million Mar -- $17191M 5/10/2013 GDP sa (QoQ) 1Q -- 1.20%

US Singapore

Economic Announcement

Thailand Hong Kong

Source: Bloomberg

Source: BloombergSource: Bloomberg

Source: Bloomberg

Regional Market Focus

17 April 2013

12 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior

11-22 APR Total Local Auto Sales Mar -- 103284 15-19 APR Exports YoY% Feb -- -18.20%

11-22 APR Total Motorcycle Sales Mar -- 649434 15-19 APR Imports YoY% Feb -- -21.30%

5/1/2013 HSBC-Markit Manufacturing PMI Apr -- 51.3 4/16/2013 Repurchase Rate 16-Apr 7.50% 7.50%

5/2/2013 Inflation (YoY) Apr -- 5.90% 4/16/2013 Reverse Repo Rate 16-Apr 9.50% 9.50%

5/2/2013 Inflation NSA (MoM) Apr -- 0.63% 4/24/2013Bloomberg April Sri Lanka Economic

Survey

5/2/2013 Core Inflation (YoY) Apr -- 4.21% 4/30/2013 CPI Moving Average (YoY) Apr -- 8.80%

5/2/2013 Exports (YoY) Mar -- -4.50% 4/30/2013 CPI (YoY) Apr -- 7.50%

5/2/2013 Total Imports (YoY) Mar -- 3.00% 06-20 MAY Exports YoY% Mar -- --

5/2/2013 Total Trade Balance Mar -- -$327M 06-20 MAY Imports YoY% Mar -- --

02-06 MAY Danareksa Consumer Confidence Apr -- 93.4 5/7/2013 Repurchase Rate 7-May -- --

02-10 MAY Consumer Confidence Index Apr -- 116.8 5/7/2013 Reverse Repo Rate 7-May -- --

02-10 MAY Money Supply - M1 (YoY) Mar -- 15.10% 5/31/2013 CPI Moving Average (YoY) May -- --

02-10 MAY Money Supply - M2 (YoY) Mar -- 15.00% 5/31/2013 CPI (YoY) May -- --

03-07 MAY Foreign Reserves Apr -- $104.80B 05-20 JUN Exports YoY% Apr -- --

03-07 MAY Net Foreign Assets (IDR Tln) Apr -- 985.39T 05-20 JUN Imports YoY% Apr -- --

Date Statistic For Survey Prior

4/17/2013Bloomberg April Australia Economic

Survey

4/17/2013 Westpac Leading Index (MoM) Feb -- 0.30%

4/18/2013 NAB Business Confidence 1Q -- -5

4/18/2013 RBA FX Transactions Other Mar -- --

4/18/2013 RBA Foreign Exchange Transactn Mar -- 328M

4/18/2013 RBA FX Transactions Govt. Mar -- --

4/23/2013 Conference Board Leading Index Feb -- 0.20%

4/24/2013DEWR Internet Skilled Vacancies

MoMMar -- -1.50%

4/24/2013 Consumer Prices (QoQ) 1Q -- 0.20%

4/24/2013 Consumer Prices (YoY) 1Q -- 2.20%

4/24/2013 CPI - Trimmed Mean (QoQ) 1Q -- 0.60%

4/24/2013 CPI - Trimmed Mean (YoY) 1Q -- 2.30%

4/24/2013 CPI - Weighted Median (QoQ) 1Q -- 0.50%

4/24/2013 CPI - Weighted Median (YoY) 1Q -- 2.30%

4/30/2013 Private Sector Credit MoM% Mar -- 0.20%

Source: Bloomberg

Indonesia

Australia

Sri Lanka

Source: Bloomberg Source: Bloomberg

PHILLIP RESEARCH STOCK SELECTION SYSTEMS

BUY >15% upside from the current price

HOLD Trade within ± 15% from the current price

SELL >15% downside from the current price

We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors

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

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Phillip Capital – Regional Member Companies

SINGAPORE

Phillip Securities Pte Ltd

Raffles City Tower 250, North Bridge Road #06-00

Singapore 179101 Tel : (65) 6533 6001 Fax : (65) 6535 6631

Website : www.poems.com.sg

MALAYSIA

Phillip Capital Management Sdn Bhd

B-2-6 Megan Avenue II 12 Jln Yap Kwan Seng 50450 Kuala Lumpur Tel : (603) 2166 8099 Fax : (603) 2166 5099

Website : www.poems.com.my

HONG KONG

Phillip Securities (HK) Ltd

11-12/F United Centre 95 Queensway, Hong Kong

Tel : (852) 2277 6600 Fax : (852) 2868 5307

Website : www.poems.com.hk

THAILAND

Phillip Securities (Thailand) Public Co Ltd

15/F, Vorawat Building 849 Silom Road

Bangkok Thailand 10500 Tel : (622) 635 7100 Fax : (622) 635 1616

Website : www.poems.in.th

JAPAN

The Naruse Securities Co Ltd

4-2, Nihonbashi Kabutocho Chuo Ku, Tokyo Japan 103-0026

Tel : (81) 03-3666-2101 Fax : (81) 03-3664-0141

Website : www.naruse-sec.co.jp

UNITED KINGDOM King & Shaxson Ltd

6th Floor, Candlewick House

120 Cannon Street London EC4N 6AS

Tel : (44) 207 426 5950 Fax : (44) 207 626 1757

Website : www.kingandshaxson.com