MCI (P) 137/11/2012 Ref No: RM2013_0050 1 of 15

Regional Market Focus

Phillip Securities Research Pte Ltd

14 March 2013

Thailand

Electricity Generating – Trade Flash Recommendation: REDUCE Previous close: Bt160 Fair value: Bt140

Management has set a CY13 investment budget of Bt16.4bn for new capacity additions in keeping with demand growth.

Full-year revenue contribution from Quezon Power and new capacity additions in solar power plant business would be key earnings drivers for EGCO this year.

We downgrade EGCO shares to ‘REDUCE’ with a CY13 target price of Bt140/share.

Hong Kong

GCL-POLY (3800 HK) Cautious to Operation Prospect Recommendation: Reduce Previous close: HK$1.77 Fair value: HK$1.48

The huge loss warn of GCL-Poly in 2012 FY means that the operation results may worse than the market expectation, and that will put great negative effects to its market performance.

The import amount of polysilicon in recent months has been increasing but its unit price has been decreasing since the end of last year, it’s huge blow to the domestic PV industry, the industry future may improve after March.

The subsidy policy of PV industry in 2013 is below market expectation, the Double-Anti policy of EU will be exercised in March, so the development of PV industry is still in dim.

According to recent information, the results decline is worse than our previous estimation and the decline will last in the 2H of 2012. We estimate that the EPS will decline to HKD -0.14 and the BVPS will decline to HKD 1.16. The data of 2013 will be HKD -0.18 and 0.98. Considering the bad market environment, the target price in next 6 months is HKD 1.48 under 1.5x P/B, the rating is Reduce.

Regional Market Focus

14 March 2013

2 of 15

Strategy Views

- Country Strategy: S’pore, 8 Mar / Thai, 8 Mar / China & HK, 28 Jan - Global Macro, Asset Strategy: 4 Mar, Update / 24 Jan, Update / 4 Jan / US, 21 Dec / ASEAN, 5 Dec

Morning Commentary - STI: -0.44% to 3288.5 - SET: +0.13% to 1578.7 - JCI: -0.39% to 4835.4 - KLCI: -0.62 to 1646.2 - HSCEI: -2.26% to 11037.4 - Hang Seng: -1.46% to 22556.6 - Nikkei 225: -0.61 to 12239.6 - ASX200: -0.14% to 5085.3 - India NIFTY: -1.06% to 5851.2 - S&P500: +0.13% to 1554.5 MARKET OUTLOOK: By Joshua Tan, Hd of Research The S&P500 continues to inch toward its all time highest close of 1565 (the DJIA, Russell have already broken thru), as latest retail sales was above expectations indicating that payroll tax hike or no, the consumer is spending. Probably spurred on by recent employment gains. Data sets out of the US have been good: employment, consumption, investment, housing, trade are doing well. We are inclined to upgrade the US to OW from MW. But in the short term, one does wonders if we are due a major pullback for the US (from the price action and MACD – no real signals yet). Greater China on the other hand continues to sell-off from the housing curbs, as Weiwen (Macro Analyst) warned in yesterday’s note. China A-shares (CSI300) has crashed thru 50dma, next stop is 2430 support. The HSCEI has fallen to 11k major support while Hang Seng is at 22.5k support. Price action suggests renewed selling. While this challenges our OW ratings for Greater China, which were successful to catch the initial rebound, we keep the ratings for now as this transition year may see a strong set of policy changes that may reignite the market. Nikkei 225 may correct as the opposition indicated it wouldn’t support pro-stimulus Iwata. Price action does now at least warn that a pause is likely. The STI (OW) continues to consolidate at the doorstep of its 3300 heavy resistance. ASEAN indexes – Thailand (OW), Indonesia (MW) and Philippine (OW) – still look relatively resilient, except that in a global context, major indexes are looking a tad tired. All indexes mentioned can be traded via a PhillipCFD or ETF (see Global Macro Asset Strategy reports) MACRO DATA: In US, better-than-expected Feb retail sales data suggest that consumers shrug off the drag from payroll tax hikes at the turn of this year as well as higher gasoline prices. Specifically, core retail sales -ex auto, gas and building materials-gained 0.4% m-m in Feb, following a 0.3% increase the preceding month. These encouraging data portend further upsides for consumption spending and consequently GDP growth in 1Q13. In Euro zone, industrial production fell by 0.4% m-m in Jan, after the revised 0.9% m-m gain in Dec, indicating the faltering industrial activities in the region, despite the improving confidence. In Australia, consumer sentiment rose to 110.5 in Mar, after the 108.3 reading in Feb, indicating an improving consumer confidence. The index for current conditions also picked up slightly to 113.8 in Mar, from 113.3 in Feb. A separate report shows that the number of housing loans decreased by 1.5% m-m in Jan, marking a fourth consecutive drop, after the 2.1% m-m drop in Dec. The central bank is holding the benchmark interest rate at 3%. With inflation staying within the target range, RBA still has scope for further interest rate cut.

Regional Market Focus

14 March 2013

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Singapore The benchmark STI closed 14.50 points lower at 3,288.52 (-0.44%). There were

5.3bn shares traded worth S$1.5bn in value. The top active stocks include Kep Corp (-1.10%), GoldenAgr (+1.67%), Singtel

(+0.85%), SingXpress (+55.0%), and THBEV (+0.81%). 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 3288.52 -14.50 -0.44P/E (x) 11.09P/Bv (x) 1.42

2.82Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

3500

3/13 6/13 9/13 12/13 3/13

Source: Bloomberg

Thailand Thai stocks traded sideways in a tight range on Wed. ICT and HELTH counters

led the market’s advance. Even though the composite SET index traded above 1580 during the session, it however failed to close above this level for the third day in a row.

The third failed attempt to close above 1580 yesterday with some technical indicators poised to flash sell signals on the bearish divergence conditions, the risks may be skewed to the downside more than the upside for Thai stocks today. However, we believe the market could swing up and down on sector rotation and selective plays. Even though the market may be due for a short-term correction, we think the downside will be limited by strong economic growth outlook driven primarily by domestic engines in the medium to long term, which could encourage buying on dips from time to time. Overall we expect the SET index to trade in a narrower range of 1571-1582 today.

For short-term trading strategy, we continue to recommend investors selectively buy stocks with more caution.

Today we peg resistance for the composite SET index at 1582-1586 and support at 1571-1563.

Close +/- % +/-SET INDEX 1578.70 2.02 0.13P/E (x) 18.15P/Bv (x) 2.56

2.63Dividend Yield

STOCK EXCH OF THAI INDEX

900

1000

1100

1200

1300

1400

1500

1600

1700

3/13 6/13 9/13 12/13 3/13

Source: Bloomberg

Indonesia

Most Indonesian stocks declined on Wednesday (13/03), as stock markets in Asia retreated on concerns about the region’s economic prospect. The Jakarta Composite Index (JCI) retreated to 4,835.439, down 18.873 points, or 0.39%. Wednesday’s decline included eight of the 9 main sectors, with construction, property and real estate sector lost 1.92%, miscellaneous industry sector shed 1.05%, and consumer goods sector fell 0.61%. The LQ45 index slipped 3.960 points, or 0.48%, at 827.748. More than 130 shares declined, 106 shares advanced, and 232 shares stagnated Wednesday on the Indonesia Stock Exchange, where 5.24 billion shares valued at IDR 5.53 trillion traded on the regular market. Foreign investors accumulated net sales with the total value of IDR 277.08 billion.

We estimate the JCI to be traded with support and resistance at 4,787 and 4,893, respectively.

Close +/- % +/-JCI Index 4835.44 -18.87 -0.39P/E (x) 19.15P/Bv (x) 3.08

1.88Dividend Yield

JAKARTA COMPOSITE INDEX

3400

3600

3800

4000

4200

4400

4600

4800

5000

3/13 6/13 9/13 12/13 3/13

Source: Bloomberg

Regional Market Focus

14 March 2013

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Sri Lanka The Colombo bourse ended the trading day on an negative sentiment resulting in

both indices closing within the negative terrain, amidst all three maturities yielding up for the second successive week by 5 basis points each at the Treasuries auction held today. The negative closures in the indices and the adverse market movements were as a result of the sluggish nature and the prevailed selling sentiments of the market participants. The benchmark ASPI Index closed negative at 5,685.82 losing 18.50 points or 0.32% having recorded a positive closure during the prior day. The S&P SL20 Index too closed within the red terrain at 3,235.24 a declining of 11.85 points or 0.36% having surged positive for 6 consecutive days. The market capitalization as at the day’s closure stood at LKR 2.19Tn resulting in a year to date gain of 0.82%. The market PER and PBV stood at 15.37 and 2.10 respectively. The turnover for the day amounted to LKR 447.02Mn indicating a drop of 33.44% against the previous trading day; Further, this was the lowest turnover value recorded since 22nd February 2013. Under the sectorial summary Bank Finance & Insurance and Diversified Holdings sectors stood out to be the top contributors for the day with subscriptions worth LKR 205.32Mn and LKR 127.07Mn respectively, Further the two sectors made a significant 74.4% contribution to the day’s aggregate turnover value. During the day, a total of 17.98Mn Shares changed hands resulting in a decrease of 9.31% against the previous trading day. Price losers surpassed the price gainers by 100:74. Foreign participants appeared to be bullish during the day resulting in a net foreign inflow of LKR 64.4Mn; which is an inflow for the 5th consecutive trading day; further this extends the year to date net foreign inflow to LKR 3.17Bn. In regard to the local FOREX market, the USD closed the day at LKR 127.91/- selling and LKR 124.76/- buying.

Close +/- % +/-CSEALL Index 5685.82 -18.50 -0.32P/E (x) 11.36P/Bv (x) 1.67

2.75

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

4700

4900

5100

5300

5500

5700

5900

6100

3/13 6/13 9/13 12/13 3/13

Source: Bloomberg

Australia The Australian share market on Wednesday closed lower, with the benchmark

S&P/ASX200 index down 25.5 points to 5,092.4. Today (14/03/13), the Australian market is set for a flat start despite an

unexpectedly strong increase in US consumer spending in February. Wall Street rose slightly, its ninth straight session of gains.

In local economic news, the Australian Bureau of Statistics (A.B.S) will release labour force data for February. Reserve Bank of Australia (R.B.A) assistant governor (Economic) Christopher Kent is scheduled to deliver a speech to an Australian Institute of Builders dinner in Sydney.

In company news, Myer (MYR.ASX) releases its first half financial results and Sigma Pharmaceuticals releases its full year results. Foxtel chief executive Richard Freudenstein is due to speak at the ASTRA 2013 Conference in Sydney. Close +/- % +/-

S&P/ASX 200 INDEX 5092.40 -25.47 -0.50P/E (x) 21.05P/Bv (x) 2.00

5.60

STANDARD & POORS/ ASX 200 INDEX

Dividend Yield

3800

4000

4200

4400

4600

4800

5000

5200

5400

3/13 6/13 9/13 12/13 3/13

Source: Bloomberg

Hong Kong

Local stocks swung between gain and loss. The HSI and HSCEI slumped 333 points and 254 points to 22556 and 11037 respectively. Market volume was73.66 billion.

We believe the market is going to consolidate, as some of the technical indicators is showing the HSI is overbuying, investors are suggested to stand on sideline and wait for a clear trading signal.

Technically, the HSI is expected to gain a support from 22500 level, major resistance will be 23300 level.

Close +/- % +/-HSI INDEX 22556.65 -333.95 -1.46P/E (x) 11.23P/Bv (x) 1.50

3.12Dividend Yield

HANG SENG INDEX

17000

18000

19000

20000

21000

22000

23000

24000

25000

3/13 6/13 9/13 12/13 3/13

Source: Bloomberg

Regional Market Focus

14 March 2013

5 of 15

Market News

US President Barack Obama, in his first meeting in three years with U.S. House Republicans, said he doesn’t support balancing the budget

over 10 years though he wants to find common ground on revamping the tax code. The president also signaled a willingness to look at changes to entitlement programs, including Social Security, according to lawmakers who described today’s session, which lasted a little more than an hour. Republican lawmakers said the meeting emphasized how far apart the parties are on tax increases and spending, even as Republicans and Democrats say deficit reduction is a priority. (Source: Bloomberg)

U.S. stocks rose, extending the longest rally for the Dow Jones Industrial Average since 1996, and the dollar strengthened as faster-than-forecast growth in retail sales bolstered optimism in the economy. Treasuries pared losses as an auction drew a lower-than-forecast yield. Commerce Department data showed sales at U.S. retailers rose 1.1 percent in February, the most in five months and more than twice the median estimate of economists. Industrial production declined 0.4 percent in January in the 17-nation euro area, exceeding a 0.1 percent decline forecast by economists, and adding to signs that the region’s recession extended into the first quarter. (Source: Bloomberg)

Singapore Certificate of entitlement (COE) premiums of big cars recorded the sharpest drop in the latest round of bidding, nosediving by nearly 40

per cent to $58,090 and emerging even lower than small-car premiums. This is the first bidding exercise since stricter car-financing measures and a new tiered car-tax structure were introduced last month, with the aim of discouraging over-leveraging and cooling the demand for vehicles. For cars above 1,600 cc, the premium plummeted from $92,667 to $58,090; the COE for small cars, that is those 1,600cc and under, declined by a more moderate 4.6 per cent to $74,689. Category E, the open category, also fell sharply, slipping 29 per cent from $91,910 to $65,001. (Source: BT Online)

Singapore marine fuel sales plunged to a three-year low in February, while vessel arrivals for the month fell to a one-year low, official data showed on Wednesday. Total volumes for January stood around 3.08 million tonnes, down 18.8 per cent from the previous month, according to data from the Maritime and Port Authority of Singapore (MPA). Sales of high-sulphur 180-centistoke (cst) marine fuel oil recorded the biggest drop of 29.9 per cent from the previous month. Sales of the 380-cst grade, which accounts for about 70-80 per cent of total sales, were 19.2 per cent lower at 2.37 million tonnes. (Source: BT Online)

Hong Kong

China, the world’s second-largest economy, will open its markets and allow its currency to float within five years, said Charles Li, chief executive officer of Hong Kong Exchanges & Clearing Ltd. “China has to reform its interest-rate system,” Li said yesterday during a panel discussion at the Futures Industry Association conference in Boca Raton, Florida. The value of the Chinese currency is limited by the government and is only allowed to rise or fall within a narrow range. Li said that system can’t last forever. (Source: Bloomberg)

HSBC Holdings Plc (HSBA) and Standard Chartered Plc raised Hong Kong mortgage rates for the first time since 2011, after the banking regulator tightened risk rules on concern a property bubble may undermine financial stability. The lenders will raise home loan charges priced at the best lending rate by 25 basis points, starting today, they said in two separate e-mailed statements yesterday. HSBC’s mortgage rate linked to the best lending rate will climb to a range of 2.85 percent to 3.15 percent, from 2.6 percent to 2.9 percent. (Source: Bloomberg)

Shanghai stepped up inspections and retrieval of dead pigs from its main river after the number of carcasses found in China’s largest

commercial city climbed to at least 6,600 today. The government pulled 685 hogs from the Huangpu river as of 3 p.m., adding to the 5,916 found up until yesterday, according to a statement on its microblog. The number of pigs found today fell almost 44 percent from yesterday even as responsible departments were told to increase checks and add to retrieval efforts following rains last night and early today, according to the statement. (Source: Bloomberg)

Thailand

Foreign investors turned net sellers of Thai shares worth Bt764.97mn on Wed. (Source: Bisnews)

The Board of Investment (BOI) approved 28 large-scale projects with a combined value of Bt129bn including those of major regional players such as Thai Airways International (THAI), AirAsia and Nissan Motor. In the first two months of 2013, the number of projects applying for BOI incentives jumped 50% to 384 but the value of investment however dropped 7%. (Source: Matichon)

TDRI warned Thailand’s public debt may exceed 70%-80% of GDP within five years if the government will continue its populist policies.

(Source: Post Today)

Indonesia February 2013’s Consumer Confidence Index (“IKK”) survey conducted by Bank Indonesia shows an increase to 116.8 level compared

to 116.2 in the previous month. This optimism is sustained by consumer confidence towards current economic conditions, particularly for durable goods purchases, Bank Indonesia’s official said. IKK increase in February was shadowed by consumer’s doubt towards domestic economic conditions in the next six months, including employment availability and primary necessity price hike following increasing demands for goods when nearing Ramadan and during preparation for Eid al Fitr. (Source: Indonesia Finance Today)

Growth of credit card transactions in January 2012-January 2013 slowed down significantly. Based on Bank Indonesia’s data, as of

Regional Market Focus

14 March 2013

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January 2013, credit card transactions volume only grew 6.96 percent (year-on-year) to 20.02 million transactions, while normal transactions rose 5.6 percent to IDR 17.96 trillion (USD 1.85 billion). During the period of 2011-2012, credit card transactions volume grew 11.6 percent, while the amount surged 21.5 percent. The slowdown was driven by the hampered growth of credit cards’ number. As of January 2013, the number of credit cards in circulation reached 14.59 million cards, increasing 0.8 percent year-on-year (YOY). In December 2012, the number of credit cards posted growth of 3.6 percent. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka's Treasuries yields edged up across maturities at Wednesday's auction with the three month yield rising 05 basis points to 9.16

percent. The 6-month yield rose 05 basis points to 10.15 percent and the 12-month yield rose 05 basis points to 11.19 percent, 16 billion bills matured and 12.44 billion rupees in bids were accepted from the market. It sold 2.9 billion rupees in three month bills, 1.0 billion rupees in 6-month bills and 8.4 billion rupees in 12-month bills. It is important to allow Treasury bill yields to go up and down depending on credit demand to keep inflation down and the exchange rate stable. Sri Lanka's central bank buys foreign exchange to prevent the rupee going up, creating liquidity, and when it also buys Treasury bills injecting rupee reserves to the banking system it generate pressure on the rupee peg and high inflation. (Source: lbo.lk)

Australia Australia’s unemployment rate stayed at 5.4 per cent in February, official figures show. Total employment was up 71,500 to 11.628

million in the month, according to seasonally adjusted figures released by the Australian Bureau of Statistics today. The forecast was for total employment to rise 8000 in February with the unemployment rate of 5.5 per cent, according to AAP's survey of 15 market economists. Full-time employment rose 17,800 to 8.117 million in February and part-time employment was up 53,700 to 3.511 million. The February participation rate was 65.3 per cent, up from 65.0 per cent in January. The February participation rate was forecast to be 65.0 per cent. (Source: The Australian)

Australia’s multi-billion-dollar a year liquefied natural gas export industry faces a new threat after its top customer - Japan - used groundbreaking technology to potentially unlock vast new subsea gas deposits just off its coast. Japan announced this week that it had successfully extracted gas from a deposit of methane hydrates - or fire ice - buried 1km beneath the sea in what's believed to be a world first. (Source: The Australian)

A senior regulator is urging the Chinese government to develop an iron ore futures market to help the nation control the rising price of the commodity. China is the world's largest consumer of iron ore and last year bought almost 60 per cent of the total global output. (Source: The Australian).

Regional Market Focus

14 March 2013

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82.89 +0.37% 294.81 -0.30%

110.14 +0.01% 2.021 +0.01%

1,587.70 +0.11% 14,455.28 +0.04%

548.70 -0.71% MSCI SEA 909.54 -0.40%

2,704.73 -0.26% 53.0

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

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

Feb

-13

700

750

800

850

900

950

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

Feb

-13

11,000

12,000

13,000

14,000

15,000

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

Feb

-13

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

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

Feb

-13

48

49

50

51

52

53

54

55

56

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

Feb

-13

1,500

1,600

1,700

1,800

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

Feb

-13

Mar-1

3

78

80

82

84

Ma

r-12

Apr-1

2

Ma

y-12

Jun-1

2

Jul-1

2

Aug-1

2

Sep-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan-1

3

Feb

-13

260

280

300

320

340

Ma

r-12

Apr-1

2

Ma

y-12

Jun-1

2

Jul-1

2

Aug-1

2

Sep-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan-1

3

Feb

-13

90

100

110

120

130

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug

-12

Sep

-12

Oct-1

2

Nov-1

2

Dec-1

2

Jan-1

3

Feb-1

3

440

460

480

500

520

540

560

580

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Nov-12

Dec-12

Jan-1

3

Feb

-13

Regional Market Focus

14 March 2013

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Valuations of Major Regional Markets

15.0 1.42

14.5 2.56

10.9 1.50

15.6 3.08

15.5 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

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

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

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

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

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

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

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

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

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

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2

Dec-1

2

Regional Market Focus

14 March 2013

9 of 15

Source: Bloomberg

World Index

JCI -0.39% 4,835.44

HSI -1.46% 22,556.65

KLCI -0.62% 1,646.22

NIKKEI 0.74% 12,330.34

KOSPI -0.26% 1,994.62

SET 0.13% 1,578.70

SHCOMP -0.99% 2,263.97

SENSEX -1.03% 19,362.55

ASX -0.50% 5,092.40

FTSE 100 -0.45% 6,481.50

DOW 0.04% 14,455.28

S&P 500 0.13% 1,554.52

NASDAQ 0.09% 3,245.12 COLOMBO -0.32% 5,685.82

STI -0.44% 3,288.52

Regional Market Focus

14 March 2013

10 of 15

Date Statistic For Survey Prior Date Statistic For Survey Prior

3/14/2013 Monthly Budget Statement Feb -$205.00B -$231.68B 3/15/2013 Unemployment Rate (sa) 4Q F -- 1.80%

3/14/2013 Producer Price Index (MoM) Feb 0.70% 0.20% 3/15/2013 Retail Sales Ex Auto (YoY) Jan -- -0.40%

3/14/2013 PPI Ex Food & Energy (MoM) Feb 0.10% 0.20% 3/15/2013 Retail Sales (YoY) Jan -0.30% -1.50%

3/14/2013 Producer Price Index (YoY) Feb 1.80% 1.40% 3/15/2013 Retail Sales (MoM) sa Jan 1.10% -0.90%

3/14/2013 PPI Ex Food & Energy (YoY) Feb 1.70% 1.80% 3/18/2013 Electronic Exports (YoY) Feb -- -5.60%

3/14/2013 Initial Jobless Claims 9-Mar 350K 340K 3/18/2013 Non-oil Domestic Exports (YoY) Feb -16.00% 0.50%

3/14/2013 Continuing Claims 2-Mar 3090K 3094K 3/18/2013 Non-oil Domestic Exp SA (MoM) Feb 13.00% -1.80%

3/14/2013 Current Account Balance 4Q -$112.5B -$107.5B 3/21/2013Bloomberg Mar. Singapore

Economic Survey

3/14/2013 Bloomberg Consumer Comfort 10-Mar -- -32.4 3/25/2013 CPI (MOM) - NSA Feb -- 0.20%

3/14/2013Bloomberg Mar. United States

Economic Survey3/25/2013 CPI (YoY) Feb -- 3.60%

3/15/2013 Empire Manufacturing Mar 10 10.04 3/26/2013 Industrial Production MoM SA Feb -- -9.20%

3/15/2013 Consumer Price Index (MoM) Feb 0.50% 0.00% 3/26/2013 Industrial Production YoY Feb -- -0.40%

3/15/2013 CPI Ex Food & Energy (MoM) Feb 0.20% 0.30% 3/27/2013 Automobile COE Open Bid Cat A 27-Mar -- --

3/15/2013 Consumer Price Index (YoY) Feb 1.90% 1.60% 3/27/2013 Automobile COE Open Bid Cat B 27-Mar -- --

3/15/2013 CPI Ex Food & Energy (YoY) Feb 2.00% 1.90% 3/27/2013 Automobile COE Open Bid Cat E 27-Mar -- --

Date Statistic For Survey Prior Date Statistic For Survey Prior

3/15/2013 Foreign Reserves 8-Mar -- $179.1B 3/14/2013 Industrial Production (YoY) 4Q -- -0.10%

3/15/2013 Forw ard Contracts 8-Mar -- $22.8B 3/14/2013 Producer Price (YoY) 4Q -- -1.50%

18-20 MAR Total Car Sales Feb -- 125817 3/14/2013 Hong Kong Manpow er Survey 2Q -- 12%

3/22/2013 Foreign Reserves 15-Mar -- -- 15-19 MAR Composite Interest Rate Feb -- 0.28%

3/22/2013 Forw ard Contracts 15-Mar -- -- 3/18/2013 Unemployment Rate SA Feb -- 3.40%

23-27 MAR Customs Exports (YoY) Feb -- 16.09% 3/21/2013Bloomberg Mar. Hong Kong

Economic Survey

23-27 MAR Customs Imports (YoY) Feb -- 40.87% 3/21/2013 CPI - Composite Index (YoY) Feb -- 3.00%

23-27 MAR Customs Trade Balance Feb -- -$5490M 3/21/2013 Bal of Paymts - Current A/C 4Q -- $29.21B

27-28 MARMfg. Production Index ISIC NSA

(YoY)Feb -- 10.1 3/21/2013 Bal of Paymts - Overall 4Q -- $37.86B

27-28 MAR Mfg. Production Index ISIC SA Feb -- 178.18 3/26/2013 Exports YoY% Feb -- 17.60%

27-28 MAR Total Capacity Utilization ISIC Feb -- 67 3/26/2013 Imports YoY% Feb -- 23.90%

3/29/2013 Total Exports YOY% Feb -- 15.60% 3/26/2013 Trade Balance Feb -- -27.5B

3/29/2013 Foreign Reserves 22-Mar -- -- 3/28/2013 Govt Mthly Budget Surp/Def HK$ Feb -- 41.9B

3/29/2013 Total Exports in US$ Million Feb -- $17924M 3/28/2013 Money Supply M1 - in HK$ (YoY) Feb -- 20.20%

3/29/2013 Forw ard Contracts 22-Mar -- -- 3/28/2013 Money Supply M2 - in HK$ (YoY) Feb -- 14.10%

Source: BloombergSource: Bloomberg

Source: Bloomberg

Thailand Hong Kong

Source: Bloomberg

US Singapore

Economic Announcement

Regional Market Focus

14 March 2013

11 of 15

Date Statistic For Survey Prior Date Statistic For Survey Prior

13-20 MAR Total Local Auto Sales Feb -- 96704 13-20 MAR Exports YoY% Jan -- -6.70%

13-20 MAR Total Motorcycle Sales Feb -- 646082 13-20 MAR Imports YoY% Jan -- -19.40%

4/1/2013 HSBC-Markit Manufacturing PMI Mar -- 50.5 15-28 MAR GDP (YoY) 4Q -- 4.80%

4/1/2013 Inflation (YoY) Mar -- 5.31% 3/28/2013 CPI Moving Average (YoY) Mar -- 8.60%

4/1/2013 Inflation NSA (MoM) Mar -- 0.75% 3/28/2013 CPI (YoY) Mar -- 9.80%

4/1/2013 Core Inflation (YoY) Mar -- 4.29% 05-19 APR Exports YoY% Feb -- --

4/1/2013 Exports (YoY) Feb -- -1.20% 05-19 APR Imports YoY% Feb -- --

4/1/2013 Total Imports (YoY) Feb -- 6.80% 4/9/2013 Repurchase Rate 9-Apr -- 7.50%

4/1/2013 Total Trade Balance Feb -- -$171M 4/9/2013 Reverse Repo Rate 9-Apr -- 9.50%

01-05 APR Danareksa Consumer Confidence Mar -- 92.3 4/30/2013 CPI Moving Average (YoY) Apr -- --

01-10 APR Consumer Confidence Index Mar -- 116.8 4/30/2013 CPI (YoY) Apr -- --

01-10 APR Money Supply - M1 (YoY) Feb -- 13.20% 06-20 MAY Exports YoY% Mar -- --

01-10 APR Money Supply - M2 (YoY) Feb -- 12.80% 06-20 MAY Imports YoY% Mar -- --

03-08 APR Foreign Reserves Mar -- $105.18B 5/7/2013 Repurchase Rate 7-May -- --

03-08 APR Net Foreign Assets (IDR Tln) Mar -- 983.19T 5/7/2013 Reverse Repo Rate 7-May -- --

Date Statistic For Survey Prior

3/14/2013 Consumer Inflation Expectation Mar -- 2.20%

3/14/2013 Employment Change Feb 10.0K 10.4K

3/14/2013 Unemployment Rate Feb 5.50% 5.40%

3/14/2013 Full Time Employment Change Feb -- -9.8K

3/14/2013 Part Time Employment Change Feb -- 20.2K

3/14/2013 Participation Rate Feb 65.00% 65.00%

3/18/2013 New Motor Vehicle Sales MoM Feb -- -2.40%

3/18/2013 New Motor Vehicle Sales YoY Feb -- 10.80%

3/19/2013RBA Policy Meeting - March

Minutes

3/20/2013Bloomberg Mar. Australia

Economic Survey

3/20/2013 Westpac Leading Index (MoM) Jan -- 0.20%

3/20/2013DEWR Internet Skilled Vacancies

MoMFeb -- -0.70%

3/21/2013 CBAHIA House Affordability 4Q -- 65.8

3/21/2013 RBA Foreign Exchange Transactn Feb -- 393M

3/22/2013 Conference Board Leading Index Jan -- -0.10%

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