MICA (P) 081/12/2011 Ref No: RM2012_0101 1 of 16

Phillip Securities Research Pte Ltd

Regional Market Focus

28 May 2012

Morning Market Commentary - STI: -0.24% to 2772.75 - MSCI Far East ex-Japan: -0.25% to 441.5 - Euro Stoxx 50: +0.25% to 2161.9 - S&P500: -0.22% to 1317.8 China's industrial profit growth fell in April, -2.2%y-y, increasing the urgency that the economy needs intervention to guard against a hard landing. The result follows on the heels of the recent HSBC Mfg PMI preliminary results which showed a 7th month of contraction for China's SMEs. In Thailand, exports unexpectedly declined by 3.7% y-y in April after a contraction of 6.5% in the preceding month, on account of sluggish demand in the EU as well as lower Chinese demand. As we highlighted in our recent Thailand strategy report, though we project a strong economic rebound from 2011, weaker-than-expected external demand as well as a delay in the recovery of manufacturing production could crimp growth. In Singapore, industrial production unexpectedly contracted by 3.5% m-m sa in April, down from 2.6% growth in the preceding month, owing to weaker demand for electronics (specifically semiconductors) as well as pharmaceuticals. NODX and industrial production are likely to remain soft in the coming months on account of weaker (and hesitant) external demand - owing to increased uncertainties in the already fragile global macro environment. In Taiwan, the economy grew by 0.39% y-y (2.8% q-q saar) in 1Q12. While the economy avoided a technical recession, the growth outlook has dimmed. The government downgraded its full-year 2012 GDP forecast for the sixth consecutive time to 3.03% from the previous estimate of 3.38% in view of increased risks on the EU sovereign debt crisis as well as competition amongst other global high-tech producers which will weigh on exports. In Japan, core CPI -which exclude oil prices- rose 0.2% y-y in April, similar to the pace of increase in the preceding month. While inflation has remained positive for the fourth consecutive month, it has still remained below the 1% inflation target, signaling possible easing by the BoJ after have stood pat at the May monetary policy meeting. The Conference Board Leading Economic Index for the Eurozone declined by 0.8% m-m to a reading of 104.8 in April after registering modest growth since the start of this year, owing to weaker business confidence as well as stock prices. We opined that recent renewed uncertainties over the EU sovereign debt crisis will likely to weigh on sentiment as well as domestic demand and adversely affect EZ economic growth. EQUITY MARKETS: Risk of a Greek exit may just be receding as New Democracy leads Syriza in all SIX opinion polls, in one poll as high as 5.7%. Merkel is being ganged up upon at home and abroad for joint liability euro-bonds. Signs that the tide may be turning positive for Europe. We could have a near term rebound soon (longer term risks still remain, see general guidance below). In any case, Asian markets, the STI included, look like they may rebound this week, although having a negative weekly close on Friday, selling momentum is fading, markets look somewhat oversold, the dollar may have topped out its rally in the short term, and the S&P500 despite a negative Friday close actually closed the week higher. Further on the bright side, our thesis that policy might give us another short-term rally (barring a disorderly Greek exit) seems to be coming to pass. China has been posturing very heavily for a stimulus program, while a slowing US economy is raising the chorus for QE3. (Our general guidance in our morning notes and formal reports has been, as we weren't confident that econ/earnings data could outperform to drive markets, some combination of policy safety nets needs to occur to reverse consolidation/correction and push markets higher - QE3/Twist2, ECB intervention, further loosening by central banks to err on the side of growth as inflation recedes, a major China fiscal policy announcement. Longer term, we are still giving the heads up that post 6th November 12 USA presidential elections, markets could again be challenging going into 2013 - the US and EZ are under current law obliged to undertake tremendous fiscal tightening) For our larger trend outlook: Global Macro & Markets, 12 Apr 12. For Singapore Sector Strategy: Sector Strategy, 4 May 2012. Singapore Sector Reports: Banks / Transport / Telcos / Property / REITS / Thematic Regional Strategy: China, 24 May 12 / Thailand, 4 May 2012 / Indonesia, 29 March 2012 Regional Macro: Singapore

Regional Market Focus 28 May 2012

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Singapore STI lost 0.24% last Friday to end the week at 2772, little change from previous

week's closing of 2779. Traded volume was 1.2 billion shares with value of $820 million. Turnover value has moderated with the increasingly cloudy outlook as investors rationalized thier positions. There were 165 gainers vs 167 decliners. Commodities stocks Olam and Wilmar fell 1.8% and 1.1% respectively. Top index gainers GLP gained 2.3%.

Close +/- % +/-FSSTI 2772.75 -6.78 -0.24P/E (x) 9.09P/Bv (x) 1.26

3.94Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

5/28 8/28 11/28 2/28 5/28

Source: Bloomberg

Thailand Volatility was high throughout the session last Fri. The SET index fell as much as

10 points in early trading before it later recouped earlier losses in the afternoon to finish the session up by 7 points led by agri and food stocks and telecoms shares though foreign selling continued.

Pressure from Europe’s debt crisis continued especially after credit rating agencies Moody’s and Standard & Poor’s downgraded several Spanish banks. However much of the headlines from Europe had already been priced in by global equities markets. Sharp falls of nearly 150 points also set the stage for the SET index to see some rebound over the past two sessions. Some technical indicators also looked oversold. Under this circumstance, the rebound is likely to continue in the Thai stock market but upside may be limited as long as there will be no strong positive triggers to drive a strong rebound. Investors should continue to closely monitor any developments in Europe. In our view, any rebound would remain capped at resistance around 1155.

For short-term strategy, investors should remain cautious in trading and gradually book profits at resistance level of 1140-1155.

Resistance on the main index is pegged at 1140-1155 and support at 1126-1115 today.

Close +/- % +/-SET INDEX 1132.83 7.05 0.63P/E (x) 14.60P/Bv (x) 2.01

3.81Dividend Yield

STOCK EXCH OF THAI INDEX

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1200

5/28 8/28 11/28 2/28 5/28

Source: Bloomberg

Indonesia The Jakarta composite index lost 82.365 points or 2.07% to 3,902.508 Friday

(25/05). All main sectors in the JCI fell Friday, led by basic industry sector which index fell 2.84%, followed by miscellaneous industry sector which trimmed 2.52% and financial sector, also losing 2.52%. LQ 45, the blue-chip stock index, posted a 16.227 points or 2.41% decline to 657.876. Foreign investors accumulated a net sell worth IDR 971.803 billion throughout Friday’s session. As many as 226 shares fell, 43 shares gained, and the remaining 52 shares were unchanged Friday, where 2.706 billion shares worth IDR 4.189 trillion changed hands on the Indonesia stock exchange’s regular board.

The JCI would likely extend its decline today, as concerns over European debt crisis have been creating risk aversion from riskier assets in the past week. The composite index would likely find support at 3,868 and resistance at 3,970.

Close +/- % +/-JCI Index 3902.51 -82.37 -2.07P/E (x) 19.90P/Bv (x) 2.22

2.47Dividend Yield

JAKARTA COMPOSITE INDEX

30003200340036003800400042004400

5/28 8/28 11/28 2/28 5/28

Source: Bloomberg

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Sri Lanka Sri Lankan stocks closed on a negative note to end the week on Friday, as

investors are still uncertain on the depreciation pressure on the currency, rising interest rates and anticipated short term economic slowdown in the country. All Share Price Index dropped down by 9.45 points to 5,009.67, accounting the year to date loos of 17.53%. More liquid Milanka Price Index fell 19.55 points to close at 4,526.13. The day's turnover ended at 185 million rupees with foreign purchases at 61 million rupees over selling of 23 million rupees. Total market capitalization stood at LKR 1.8Tn, recording the year to date loss by 15.53%. Traded volume for the day was 12.2Mn with 234 traded counters. Negative contributors comfortably outnumbered positive contributors with 117:68. Market PE stands at attractive 11.54x while recording a market PBV of 1.57x.

Close +/- % +/-CSEALL Index 5009.67 -9.45 -0.19P/E (x) 10.67P/Bv (x) 1.63

2.45

Dividend Yield

SRI LANKA COLOMBO ALL SH

45005000550060006500700075008000

5/28 8/28 11/28 2/28 5/28

Source: Bloomberg

Australia The S&P/ASX200 finished the week lower, closing 26 points down to 4029. The

Australian markets were driven by the chronic theme around Greece uncertainty and the news of Chinese bank loan targets which prompted investors to avert risk over the weekend. Creeping into investors minds are the Spanish banks as Bankia, one of their largest, requested €19 billion in state aid while a report that Spanish municipalities are finding it difficult to raise funds didn’t help.

The Australian markets are expected to open in positive territory today, with the SPI Futures 200 indicating upward 29 points or (+0.5%). Commodities traded stronger over the weekend which should flow to the resource stocks which have experienced 10 days of selling. The market shouldn’t run away too much though as money will still stay on the sidelines due to the US markets being closed tonight for Memorial Day.

Close +/- % +/-S&P/ASX 200 INDEX 4046.80 17.55 0.44P/E (x) 13.67P/Bv (x) 1.61

6.71Dividend Yield

STANDARD & POORS/ ASX 200 INDEX

3500

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4500

5000

5/28 8/28 11/28 2/28 5/28

Source: Bloomberg

Hong Kong Local stocks climbed slightly. The HSI and HSCEI gained 47 points and lost 2

points to 18713 and 9539 respectively. Market volume was 46.008 billion. As some report indicated the lending target of China’s banks can’t be achieved in

this year, which is the first time within 7 years. With this news, the China banking sector dropped, ABCI (1288) dropped 1.6% and closed at HKD $3.11. CITIC Bank (998) dropped 3.9% and closed at HKD $3.97.

Investors are suggested to keep cash level and wait for a clear trading signal, due to the sovereign debt crisis continued.

We peg resistance for the HSI at 18800 and support at 18500

Close +/- % +/-HSI INDEX 18713.41 47.01 0.25P/E (x) 8.97P/Bv (x) 1.29

3.36Dividend Yield

HANG SENG INDEX

16000

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5/28 8/28 11/28 2/28 5/28

Source: Bloomberg

Regional Market Focus 28 May 2012

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Singapore Stamford Land – Initiation Recommendation: BUY Previous close: S$0.555 Target Price: S$0.795 ▪ Favourable hotel demand-supply situation. ▪ Hotels are valued at pre-2000 historical cost. ▪ Proven profitability. High %age payouts in dividends. ▪ Property development profits recognised in FY12. Thailand Thai Vegetable Oil – Company Update Recommendation: BUY Previous close: Bt20.60 Fair value: Bt25.75 ▪ Domestic and overseas industry outlooks are still conductive to earnings recovery. ▪ Earnings recovery is on the horizon. We leave our CY12 earnings outlook for TVO unchanged. ▪ We maintain a ‘BUY’ rating on TVO with a target price of Bt25.75/share. Hong Kong KWG (1813.HK) – Company Update Recommendation: Accumulate Previous close: HKD$ 4.27 Fair value: HKD$ 4.85 ▪ KWG’s sales in 2011 totaled RMB 11.5bn, rising by 5% YoY, but the performance didn’t hit the sales target of 15bn. As the reason, except for the

management’s over-positive forecast, many projects affected by buy limit policies and less decrease on ASP price cut are main reasons. On the whole KWG maintained growth on sales, and lowered influence of controlling policies. We expect that the two serviced apartment projects in Guangzhou will be sales core. And commercial properties will play more important role, its sales reached over 5.5bn, accounting for near 50% of totals.

▪ KWG’s debt scale kept increased in 2011. KWG’s liquidity risk rose at certain extent, because of increased inventories, rising short-term debt and under-expected cash of 4bn. For more than 21bn properties inventories, activating stocks and promoting liquidity are positive towards making financial status better. However, we think that there is not clear enough policy surrounding, net debt to equity ratio will rise in a narrow margin but with limited financial risk.

▪ We think that KWG’s strategy on focusing on commercial property can fit current market surrounding to lower negative affect of policies. The company may ensure continuous sales growth, and financial risk is under controlling in spite of tightened liquidity. In our opinion, the company’s valuation and dividend yield have enough attractive, loosening policies and good sales will be direct driver of share price. We give KWG “Hold” rating, 12m TP at HKD4.85, representing to 5.2times expected P/E in 2013.

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Market News

US Job growth probably picked up in May after the weakest gain in six months, and the U.S.unemployment rate held at a three-year low,

signs of gradual improvement in the labor market, economists said before reports this week. Payrolls climbed by 150,000 workers after a 115,000 gain in April, according to the median forecast of 68 economists surveyed by Bloomberg News ahead of Labor Department figures due June 1. Manufacturing cooled and household purchases increased, other data may show. (Source: Bloomberg)

Singapore CBS data shows that 58.3 per cent of the 15,410 Singaporeans/PRs granted private home mortgages (including refinancing cases) in

the first three months of 2012 did not have any outstanding home loans either for a HDB flat or private residential property. This figure is higher than the 56.4 per cent for full-year 2011 and 53 per cent for 2010. (Source: BT Online)

Singapore is still on track to cement its position as an Asian hub for major metals and minerals traders, despite fierce competition posed

by Hong Kong. Data by trade agency International Enterprise (IE) Singapore reveals that offshore trade turnover for the M&M sector here rose by 46 per cent over the past four years, from US$15.9 billion in 2007 to US$72.1 billion in 2011. Over the same period, the sector created 19 per cent more jobs, from 705 in 2007 to 1,418 in 2011. (Source: BT Online)

Hong Kong Chinese industrial companies’ profits fell in April, a government report showed, as the nation’s slowing economy curbed demand.

Earnings declined 2.2 percent from a year earlier to 407.6 billion yuan ($64.2 billion), the National Bureau of Statistics said on its website yesterday. That compared with a 4.5 percent gain in March. The deceleration in corporate profit growth underscores concerns that the slowdown in the world’s second-biggest economy is deepening. China’s State Council said on May 23 that downside risks to growth are increasing and the government will intensify “fine-tuning” policies as needed, signaling it may take more aggressive steps to support the nation’s expansion. (Source: Bloomberg)

Graff Diamonds Corp., the London- based jeweler founded in 1960, plans to open 11 new stores in Asia, including eight in China, in the

next two years after a $1 billion initial public offering in Hong Kong. Demand for high-end diamonds will grow in China and other Asian countries as the “super rich” increase, Chief Executive Officer Francois Graff said at a press conference in Hong Kong yesterday. Graff is offering as many as 311.2 million shares at HK$25 to HK$37 apiece, according to a sales prospectus. (Source: Bloomberg)

China will encourage greater private investment in banks as it seeks to fuel growth in an economy that’s losing steam and to aid small

businesses that are short of funds. Qualified companies can buy into lenders through private stock placements or new share subscriptions, equity transfers or mergers and acquisitions, according to guidelines released by the China Banking Regulatory Commission in a statement posted on its website today. The regulator also said it will encourage private investment in trust, financial leasing and auto- financing companies. (Source: Bloomberg)

Thailand Foreign investors remained net sellers of Thai shares worth Bt1,563.86mn last Fri. (Source: Bisnews) The Ministry of Commerce said Thailand’s exports in Apr 2012 unexpectedly fell 3.67% y-y to US$16,919mn, missing analysts’ forecast

for a 3.5% rise. The decline in exports reflected a fall in shipments to key markets and a recession in Europe. (Source: Bisnews) The Election Commission said if the parliament passes the draft constitutional amendment bill in the third reading on Jun 5, 2012, CDA

elections are expected to be held on Aug 19 or 26 with a budget of no more than Bt3bn. (Source: Bisnews)

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Indonesia The government will implement the export benchmark price (Harga Patokan Ekspor/HPE) on mineral commodities as the basis for

determining the application of 20 percent exit duty for all types of mineral commodities. The HPE on mineral commodities is to avoid the diversion of export data from businesses. With the HPE, the government could set a fair price. The HPE is based on FOB (free on board) as the basis to implement the exit duty. Reference will use the international exchange market, such as the London Metal Exchange (LME). The reference price from the LME index will be broken down again to the raw commodity (ore), because the index is already the price of metal, rather than ore. The Ministry of Trade will coordinate the details of the prices with the Ministry of Energy and Mineral Resources. The government has implemented three policies to control the export of mineral ores, namely the additional provisions in the Minister of Energy Regulation No. 11 of 2012, such as the mining license holders (IUP) of production operations and public mining permit (IPR) can sell mineral ores (raw material or ore) out of the country once it had obtained the recommendation of the Minister of Energy. The government also has set the Minister of Finance Regulation No. 75/PMK.011/2012 on May 16, 2012, on the Determination of Exported Goods Subject to Exit Duty and Exit Duty Tariff, which came into force on May 16, 2012. The regulations were issued because according to the government, after the issuance of Law Number 4 Year 2009 on mineral and coal mining, mineral ore exports increased significantly. Those mineral ores were nickel ore export which increased 800 percent, iron ore 700 percent, and bauxite ore 500 percent. (Source: Indonesia Finance Today)

The government relies on investment, consumption and government spending to pursue the economic growth target of 6.5 percent in

2012 amidst the global economic uncertainty. Deputy Minister of Finance said the weakening global economy – including in Asia Pacific, is one of the early warning sign for Indonesia's economic growth. The weakening global economic growth will impact export growth. However, other sources of growth, such as investment, private consumption and government spending can be optimized to cover the weakening exports. The Organization for Economic Cooperation and Development (OECD) revised its forecast for this year’s Indonesia's economic growth from 6.1 percent to 5.8 percent. Domestic demand is expected to remain high, but exports to Asian countries are projected to decline. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka's economy will expand around 7.0 percent in 2012, but a drought can hit agricultural output which may undermine growth,

Treasury Secretary P B Jayasundera said. "We think the economy will grow around 7.0 percent," Treasury secretary P B Jayasundera said."Nobody should under-estimate the prevailing drought conditions. That we have not calculated." Sri Lanka's tea exports have already fallen with production falling in the first quarter amid price weaknesses. But an economic growth of 7.0 percent or even lower, would be much higher than what most countries are expecting this year. Sri Lanka was originally expected to grow 8.3 percent in 2012 but large amounts of unproductive credit taken by state enterprises to manipulate energy prices put pressure on Sri Lanka's peg with the US dollar, pushing up interest rates and depreciating the currency. The rupee has since fallen to around 130 to the US dollar from around 110 in the first quarter and energy prices have been raised. Last year the central government budget deficit contracted to 6.9 percent of GDP in 2011 from 8.0 percent in 2010, but two energy utilities ran losses of 104 billion rupees or another 1.5 percent of gross domestic product.State energy price deceptions, which have been a key vote buying tactic of Sri Lanka's rulers for decades are also one of the main threats to economic stability and well-being of the people, as they trigger frequent balance of payments crises.Deceptive pricing were only abandoned for a brief period from 2001 to late 2003 through a price formula, following a balance of payments crisis in 1999/2000.Deceptive energy pricing pushes up credit demand, which are then accommodated with Central Bank credit (printed money) causing high inflation or currency depreciation or both. Deceptive pricing is eventually by non-energy taxes on citizens, which are then channeled to the energy enterprises, or by expanding the national debt which have to be repaid later, giving an impression to citizens that they are not actually paying for the energy. (Source: LBO)

State-run SriLankan Airlines said it had taken delivery of an Airbus A320 increasing the type to eight aircraft and the fleet to 21 and two

floatplanes for domestic services.The airline has seven A330s and six A340s, and two De Havilland Twin Otters. The new A320 will set 20 business class passengers and 120 in economy class. It has a video and audio on demand flight entertainment services with nine television channels and 15 audio channels. The airline said it was upgrading its long-haul fleet with flat-bed seat and flight entertainment systems. (Source: LBO).

Australia Prime Minister Julia Gillard pledged to protect Australian workers after labor unions criticized her government’s decision to let billionaire

mining magnate Gina Rinehart employ more than 1,700 overseas workers. “We are going to see amazing growth in our resources sector,” Gillard said in Canberra yesterday. “There will be some need for some foreign labor because of the sheer size and scale, but we’ll always put Australian jobs first.” The government on May 25 approved an enterprise migration agreement authorizing Rinehart’s Roy Hill mining project in Western Australia’s Pilbara region to sponsor as many as 1,715 overseas workers for its three-year construction phase because of a shortage of local employees. (Source: Bloomberg)

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Dollar Index 82.15 -0.30% Gold 1,573.03 +0.08%

Crude oil 90.66 -2.25% US Treasury 10yr Yield 1.738 +0.01%

DJI 12,454.83 -0.60% S&P 500 INDEX 1,317.82 -0.22%

SHCOMP 2,333.55 -0.74%

Source: Bloomberg

10000

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May-11

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Jul-11

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70

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85

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120

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Apr-121.51.71.92.12.32.52.72.93.13.3

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Regional Market Focus 28 May 2012

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Source: Bloomberg

Major World Indices

JCI -2.07% 3,902.51

HSI 0.25% 18,713.41

KLCI 0.19% 1,551.12

KOSPI 0.53% 1,824.17

NIKKEI 0.20% 8,580.39

SET 0.63% 1,132.83

SHCOMP -0.74% 2,333.55

SENSEX -0.03% 16,217.82

ASX -0.66% 4,029.25

FTSE 100 0.03% 5,351.53

DOW -0.60% 12,454.83 S&P 500 -0.22% 1,317.82 NASDAQ -0.07% 2,837.53

COLOMBO -0.19% 5,009.67

STI -0.24% 2,772.75

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Top Value & VolumeSingaporeTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)OLAM INTERNATION 1.66 -1.78 -0.030 54,232 GSH CORP LTD 0.08 +0.00 +0.000 44,427NOBLE GROUP LTD 1.08 +1.89 +0.020 44,850 TT INTERNATIONAL LTD 0.13 +0.76 +0.001 34,236GENTING SINGAPOR 1.50 -0.33 -0.005 39,990 ADDVALUE TECHNOLOGIES LTD 0.10 +0.00 +0.000 63,661SINGAP TELECOMM 3.08 -0.65 -0.020 67,090 SWEE HONG LTD 0.30 +5.26 +0.015 41,908DBS GROUP HLDGS 13.17 -0.38 -0.050 54,926 NOBLE GROUP LTD 1.08 +1.89 +0.020 45,638SEMBCORP MARINE 4.42 -0.90 -0.040 20,795 NEXT-GENERATION SATELLITE 0.01 +16.67 +0.002 114,418KEPPEL CORP LTD 10.03 +0.40 +0.040 17,697 GOLDEN AGRI-RESOURCES LTD 0.64 -0.78 -0.005 52,086WILMAR INTERNATI 3.71 -1.07 -0.040 26,896 SIN HENG HEAVY MACHINERY 0.27 +0.00 +0.000 45,189OCBC BANK 8.51 -0.23 -0.020 19,398 OLAM INTERNATIONAL LTD 1.66 -1.78 -0.030 35,668GOLDEN AGRI-RESO 0.64 -0.78 -0.005 31,657 GENTING SINGAPORE PLC 1.50 -0.33 -0.005 26,673

Hong KongTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)CHINA MOBILE 79.55 -0.56 -0.45 1,372,225 LUXEY INT'L 0.03 -24.44 -0.01 434,160AIA GROUP LTD 24.70 -0.80 -0.20 997,444 RENHE COMMERCIAL 0.41 +3.80 +0.02 211,408CHINA CONST BA-H 5.15 +0.78 +0.04 1,497,182 BANK OF CHINA-H 2.86 +0.70 +0.02 394,478IND & COMM BK-H 4.62 -0.22 -0.01 1,430,225 CHINA CONST BA-H 5.15 +0.78 +0.04 292,968TENCENT HOLDINGS 217.00 +1.21 +2.60 863,738 IND & COMM BK-H 4.62 -0.22 -0.01 311,992CHINA NATL BDG-H 9.19 -2.13 -0.20 529,225 CHINA 3D DIGITAL 0.14 +19.17 +0.02 212,360BANK OF CHINA-H 2.86 +0.70 +0.02 1,127,806 GOME ELECTRICAL 1.32 +2.33 +0.03 112,720HSBC HLDGS PLC 62.70 +0.88 +0.55 757,188 AGRICULTURAL-H 3.11 -1.58 -0.05 172,454ANHUI CONCH-H 22.85 +1.56 +0.35 627,913 CHINA NATL BDG-H 9.19 -2.13 -0.20 57,484CHINA LIFE INS-H 18.06 +0.56 +0.10 471,134 SEMICONDUCTOR MA 0.31 -3.17 -0.01 95,846

ThailandTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)PTT GLOBAL CHEM 56.00 -1.32 -0.75 1,627,977 THAI-GERMAN PRO 0.42 -2.33 -0.01 249,979BANPU PUB CO LTD 468.00 -0.43 -2.00 634,267 THREE SIXTY FIVE 0.43 -15.69 -0.08 369,191THAI OIL PCL 54.75 +0.00 +0.00 875,020 JASMINE INTL PCL 2.90 -0.68 -0.02 160,816PTT PCL 307.00 -1.92 -6.00 2,294,036 TRUE CORP PCL 3.72 +2.20 +0.08 68,919SIAM COMM BK PCL 139.50 +0.72 +1.00 633,547 BTS GROUP HOLDIN 0.76 +2.70 +0.02 84,951KASIKORNBANK PCL 150.00 +1.01 +1.50 1,599,612 NATURAL PARK PCL 0.02 +0.00 +0.00 126,601BANGKOK BANK PUB 178.50 -1.65 -3.00 1,052,294 TMB BANK PCL 1.50 -0.66 -0.01 28,447CHAROEN POK FOOD 37.75 +2.03 +0.75 641,562 KRISDA MAHANAKOR 0.75 +0.00 +0.00 72,492TRUE CORP PCL 3.72 +2.20 +0.08 254,959 NATION MULTIMEDI 1.06 -0.93 -0.01 63,012PTT EXPL & PROD 155.00 -1.27 -2.00 565,219 IRPC PCL 3.66 +1.10 +0.04 57,563

IndonesiaTop 10 Value Last % Chg Chg Value ('mn) Top 10 Volume Last % Chg Chg Volume ('k)TELEKOMUNIKASI 7,250 -3.33 -250.00 182,075 ENERGI MEGA PERS 157 -2.48 -4.00 264,495UNITED TRACTORS 23,900 -5.35 -1,350.00 247,498 SENTUL CITY TBK 260 -3.70 -10.00 181,489ASTRA INTERNATIO 65,850 -2.80 -1,900.00 335,719 TRADA MARITIME 850 -2.30 -20.00 143,231BANK RAKYAT INDO 5,800 -2.52 -150.00 328,348 BUMI RESOURCES 1,770 -3.28 -60.00 53,201BUMI RESOURCES 1,770 -3.28 -60.00 95,936 GARUDA INDONESIA 730 -1.35 -10.00 38,890JASA MARGA 5,100 -0.97 -50.00 59,492 BAKRIELAND DEV 103 0.98 1.00 120,576PERUSAHAAN GAS N 3,775 -1.95 -75.00 104,175 DELTA DUNIA MAKM 445 -4.30 -20.00 48,812TRADA MARITIME 850 -2.30 -20.00 122,859 BHAKTI INVESTAMA 445 0.00 0.00 77,156SEMEN GRESIK TBK 10,950 -3.52 -400.00 191,340 RICKY PUTRA 240 6.67 15.00 167,159ENERGI MEGA PERS 157 -2.48 -4.00 41,952 ADARO ENERGY TBK 1,620 -1.82 -30.00 35,630

Sri LankaTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)JOHN KEELLS HLDG 195.20 -0.86 -1.70 2,589 AMANA TAKAFUL 1.70 0.00 0.00 142DFCC BANK 113.90 -2.32 -2.70 1,006 JOHN KEELLS HLDG 195.20 -0.86 -1.70 13COMMERCIAL BK 105.00 0.00 0.00 37,517 PANASIAN POWER L 2.10 0.00 0.00 282MERCHANT BANK 20.00 -0.50 -0.10 2,290 DFCC BANK 113.90 -2.32 -2.70 9ROYAL CERAMICS 101.40 2.32 2.30 10 MERCHANT BANK 20.00 -0.50 -0.10 115NATL DVLP BANK P 116.00 0.00 0.00 13,077 FREE LANKA CAPIT 1.60 0.00 0.00 174HEMAS POWER CO L 19.10 0.00 0.00 425 SMB LEASING - NV 0.30 0.00 0.00 1,944PC PHARMA PLC 14.00 -1.41 -0.20 4 PC PHARMA PLC 14.00 -1.41 -0.20 0CARSON CUMBERBAT 468.30 0.11 0.50 9,790 SWARNAMAHAL FINA 7.60 0.00 0.00 941AITKEN SPENCE H 69.00 1.47 1.00 1,050 TEXTURED JERSEY 7.70 2.67 0.20 175Source: Bloomberg

Regional Market Focus 28 May 2012

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AustraliaTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)BHP BILLITON LTD 31.610 -1.19 -0.38 520,167 TAMASKA OIL & GAS LTD 0.001 0.00 0.00 66,500WESTPAC BANKING 20.120 -1.32 -0.27 313,255 TELSTRA CORP LTD 3.530 0.00 0.00 53,449RIO TINTO LTD 55.930 -0.76 -0.43 498,179 FORTESCUE METALS GROUP 4.310 -3.79 -0.17 39,234COMMONW BK AUSTR 48.720 -1.20 -0.59 404,275 FLINDERS MINES LTD 0.130 -18.75 -0.03 34,365AUST AND NZ BANK 20.380 -0.44 -0.09 230,072 INCITEC PIVOT LTD 2.800 2.56 0.07 28,503FORTESCUE METALS 4.310 -3.79 -0.17 177,872 BLUESCOPE STEEL LTD 0.330 1.54 0.01 18,298NATL AUST BANK 23.300 -0.77 -0.18 225,698 FAR LTD 0.037 0.00 0.00 17,098WESFARMERS LTD 29.000 -2.23 -0.66 120,618 MALAGASY MINERALS LTD 0.095 -17.39 -0.02 16,405TELSTRA CORP 3.530 0.00 0.00 186,342 ALUMINA LTD 0.895 0.00 0.00 16,326WOODSIDE PETRO 31.000 -0.35 -0.11 170,073 BHP BILLITON LTD 31.610 -1.19 -0.38 15,824Source: Bloomberg

Commodities % Chg Chg Last Price of S$1 Price of US$1GOLD SPOT (US$/OZ) +0.08 +1.30 1,573.03 0.7993 0.9774SILVER SPOT (US$/OZ) +0.40 +0.11 28.53 0.8042 1.0294WTI Cushing Crude Oil Spot Price (US$/bbl) +0.28 +0.25 90.66 0.6241 1.2515

0.4994 1.56450.7813 1.0000

Commodities % Chg Chg Last 4.9500 6.3367Malaysian Rubber Board Standard (MYR/kg) -1.09 -11.00 997.50 6.0648 7.7629PALM OIL (MYR/Metric Tonne) -1.00 -30.50 3,022.50 62.2200 79.6500

925.2120 1184.2200Index % Chg Chg Last 2.4641 3.1535 DOLLAR INDEX SPOT -0.30 -0.25 82.15 24.7324 31.6600Source: Bloomberg

CANADIAN DOLLAREUROBRITISH POUND

CurrenciesAUSTRALIAN DOLLAR

Commodities & Currencies

JAPANESE YENKOREAN WONMALAYSIAN RINGGITTHAI BAHT

US DOLLARCHINA RENMINBIHONG KONG DOLLAR

Maturity Today Yesterday Last Week Last Month3 Months 0.07 0.07 0.05 0.076 Months 0.12 0.13 0.13 0.122 Years 0.28 0.29 0.29 0.253 Years 0.40 0.41 0.40 0.395 Years 0.74 0.77 0.74 0.8410 Years 1.74 1.78 1.72 1.9830 Years 2.84 2.88 2.80 3.15

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

US Treasury Yields

1.671.46

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

Regional Market Focus 28 May 2012

11 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior5/29/2012 S&P/CS 20 City MoM% SA MAR 0.10% 0.15% 5/31/2012 Credit Card Bad Debts APR -- 17.7M5/29/2012 S&P/CS Composite-20 YoY MAR -2.70% -3.49% 5/31/2012 Credit Card Billings APR -- 3173.8M5/29/2012 S&P/Case-Shiller US HPI YOY% 1Q -- -4.03% 5/31/2012 Bank Loans & Advances (YoY) APR -- 26.00%5/29/2012 S&P/CaseShiller Home Price Ind MAR -- 134.2 5/31/2012 M1 Money Supply (YoY) APR -- 10.20%5/29/2012 S&P/Case-Shiller US HPI 1Q -- 125.67 5/31/2012 M2 Money Supply (YoY) APR -- 9.70%5/29/2012 Consumer Confidence MAY 69.8 69.2 6/5/2012 Electronics Sector Index MAY -- 51.55/29/2012 Dallas Fed Manf. Activity MAY 1.5 -3.4 6/5/2012 Purchasing Managers Index MAY -- 49.75/30/2012 MBA Mortgage Applications 25-May -- 3.80% 6/6/2012 Automobile COE Open Bid Cat A 6-Jun -- 580015/30/2012 Pending Home Sales MoM APR -0.10% 4.10% 6/6/2012 Automobile COE Open Bid Cat B 6-Jun -- 852165/30/2012 Pending Home Sales YoY APR -- 10.80% 6/6/2012 Automobile COE Open Bid Cat E 6-Jun -- 868895/31/2012 Challenger Job Cuts YoY MAY -- 11.20% 6/7/2012 Foreign Reserves MAY -- $246.11B5/31/2012 RBC Consumer Outlook Index JUN -- 47.6 6/12/2012 Singapore Manpow er Survey 3Q -- 20%5/31/2012 ADP Employment Change MAY 135K 119K 6/15/2012 Unemployment Rate (sa) 1Q F -- 2.10%5/31/2012 GDP QoQ (Annualized) 1Q S 1.90% 2.20% 6/15/2012 Retail Sales Ex Auto (YoY) APR -- 6.50%5/31/2012 Personal Consumption 1Q S 2.90% 2.90% 6/15/2012 Retail Sales (YoY) APR -- 9.10%

Date Statistic For Survey Prior Date Statistic For Survey Prior

5/28/2012 Mfg. Production Index ISIC NSA (YoY)

APR 3.5 -3.17 5/31/2012 Retail Sales - Value (YoY) APR -- 17.30%

5/28/2012 Total Capacity Utilization ISIC APR -- 68.1 5/31/2012 Retail Sales - Volume (YoY) APR -- 13.40%5/28/2012 Mfg. Production Index ISIC SA APR -- 175.17 5/31/2012 Money Supply M1 - in HK$ (YoY) APR -- 7.80%5/31/2012 Total Exports YOY% APR -- -6.80% 5/31/2012 Money Supply M2 - in HK$ (YoY) APR -- 7.50%5/31/2012 Total Exports in US$ Million APR -- $19661M 5/31/2012 Money Supply M3 - in HK$ (YoY) APR -- 7.30%5/31/2012 Total Imports YOY% APR -- 21.50% 5/31/2012 Govt Mthly Budget Surp/Def HK$ APR -- -10.8B5/31/2012 Total Imports in US$ Million APR -- $21062M 6/5/2012 Purchasing Managers Index MAY -- 50.35/31/2012 Total Trade Balance APR -- -$1401M 6/7/2012 Foreign Currency Reserves MAY -- $295.6B5/31/2012 Current Account Balance (USD) APR -$2000M -$1522M 6/12/2012 Hong Kong Manpow er Survey 3Q -- 8%5/31/2012 Overall Balance in US$ Million APR -- $766M 6/14/2012 Industrial Production (YoY) 1Q -- -2.20%5/31/2012 Business Sentiment Index APR -- 55.5 6/14/2012 Producer Price (YoY) 1Q -- 6.50%6/1/2012 Consumer Price Index (YoY) MAY 2.40% 2.47% 6/18/2012 Unemployment Rate SA MAY -- 3.30%6/1/2012 Consumer Price Index NSA (MoM) MAY 0.30% 0.42% 6/19/2012 Composite Interest Rate MAY -- 0.39%6/1/2012 Core CPI (YoY) MAY 2.00% 2.13% 6/21/2012 CPI - Composite Index (YoY) MAY -- 4.70%6/1/2012 Foreign Reserves 25-May -- $175.0B 6/21/2012 Bal of Paymts - Overall 1Q -- $49.75BSource: Bloomberg Source: Bloomberg

Source: Bloomberg

Thailand Hong Kong

US SingaporeEconomic Announcement

Source: Bloomberg

Regional Market Focus 28 May 2012

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Date Statistic For Survey Prior Date Statistic For Survey Prior6/1/2012 Inf lation (YoY) MAY -- 4.50% 28-30 MAY Exports YoY% MAR -- 7.60%6/1/2012 Inf lation NSA (MoM) MAY -- 0.21% 28-30 MAY Imports YoY% MAR -- 27.90%6/1/2012 Core Inflation (YoY) MAY -- 4.24% 5/31/2012 CPI Moving Average (YoY) MAY -- 5.70%6/1/2012 Exports (YoY) APR -- 5.50% 5/31/2012 CPI (YoY) MAY -- 6.10%6/1/2012 Total Imports (YoY) APR -- 13.40% 11-20 JUN Exports YoY% APR -- --6/1/2012 Total Trade Balance APR -- $840M 11-20 JUN Imports YoY% APR -- --6/1/2012 Consumer Confidence Index MAY -- 102.5 6/12/2012 Repurchase Rate 12-Jun -- 7.75%01-07 JUN Danareksa Consumer Confidence MAY -- 83.4 6/12/2012 Reverse Repo Rate 12-Jun -- 9.75%04-06 JUN Foreign Reserves MAY -- $116.41B 15-29 JUN GDP (YoY) 1Q -- 8.30%04-06 JUN Net Foreign Assets (IDR Tln) MAY -- 1020.77T 6/29/2012 CPI Moving Average (YoY) JUN -- --07-13 JUN Money Supply - M1 (YoY) APR -- 23.00% 6/29/2012 CPI (YoY) JUN -- --07-13 JUN Money Supply - M2 (YoY) APR -- 18.80% 7/10/2012 Repurchase Rate 10-Jul -- --6/12/2012 Bank Indonesia Reference Rate 12-Jun -- 5.75% 7/10/2012 Reverse Repo Rate 10-Jul -- --12-20 JUN Total Local Auto Sales MAY -- 87080 10-20 JUL Exports YoY% MAY -- --12-20 JUN Total Motorcycle Sales MAY -- 617508 10-20 JUL Imports YoY% MAY -- --

Date Statistic For Survey Prior5/29/2012 HIA New Home Sales (MoM) APR -- -9.40%5/30/2012 Construction Work Done 1Q -- -4.60%5/30/2012 Retail Sales s.a. (MoM) APR -- 0.90%5/31/2012 Private Capital Expenditure 1Q -- -0.30%5/31/2012 Private Sector Credit MoM% APR -- 0.40%5/31/2012 Private Sector Credit YoY% APR -- 3.40%5/31/2012 Building Approvals (MoM) APR -- 7.40%5/31/2012 Building Approvals (YoY) APR -- -15.00%6/1/2012 AiG Performance of Mfg Index MAY -- 43.96/1/2012 RPData-Rismark House PX Actual APR -- -0.80%6/1/2012 RBA Commodity Price Index Au MAY -- 99.56/1/2012 RBA Commodity Index SDR MAY -- -4.20%6/4/2012 TD Securities Inf lation MoM% MAY -- 0.30%6/4/2012 TD Securities Inf lation YoY% MAY -- 1.90%6/4/2012 Company Operating Prof it QoQ% 1Q -- -6.50%

Australia

Sri Lanka

Source: Bloomberg

Source: BloombergSource: Bloomberg

Indonesia

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