MIC (P) 137/11/2012 Ref No: RM2012_0232 1 of 15

Regional Market Focus

Phillip Securities Research Pte Ltd

30 November 2012

Hong Kong

Henderson Land (0012.HK) Rating: Accumulate Previous close: HKD55.3 Fair value: HKD62 Valuation

We give Henderson Land "Accumulate" rating and a target price of HKD62. Current discount to NAV is about 35%. Because of government effort to prevent property bubble and already high levels of property prices, we believe discount to NAV will not return to ten years historical average of 10%. But due to Henderson Land's satisfying launch of the Reach and Double Cove this year and global economy stabilize causing investor sentiment increase, narrowing NAV discount to 30% is possible. Therefore, we give 30% discount on 12-month forward NAV of HKD88.6 and get a target price of HKD62.

Major risks

Great drop in property prices

HK Island office vacancy rate rise sharply

Government housing policies

Singapore

CapitaLand Ltd – Company updates Recommendation: Accumulate Previous close: S$3.50 Fair value: S$3.97

Emerged as the top bidder for a residential site at Bishan Street 14 with $505.1mn

Tender price of $853psf is 3.06% higher than the second highest bidder, but 1.9% lower than the price that it tendered for Sky Habitat

Maintain Accumulate with higher target price of $3.97

Thailand

Quality Houses – Company Update Recommendation: NEUTRAL Previous close: Bt2.20 Fair value: Bt2.20

SDH/TH presales recovered at a slow pace but condo presales fared better.

Earnings are expected to be strong this year on exceptional gains and better operating performance due to a low base of comparison in CY11.

Strong earnings growth momentum is set to continue well into next year driven by condo backlog to be realized as revenue in CY13 and favorable SDH/TH presales outlook.

Even if growth prospects are encouraging, QH however looks fairly valued at current trading levels as it is now trading near its historical P/E average. At the end of the day, we maintain a ‘NEUTRAL’ stance on QH with a target price of Bt2.20/share.

Regional Market Focus

30 November 2012

2 of 15

Strategy Views

- Country Strategy: China & HK, 23 Nov / Thai, 9 Nov / US, 24 Oct / Indon, 27 Sept / S'pore, 3 Sept / Malaysia, 31 Aug - Global Macro, Asset Strategy: 9 Oct / Update, 25 Oct Morning Commentary

- STI: +1.13% to 3045.9 - MSCI SE Asia: +0.84% to 841.2 - Hang Seng: +0.99% to 21922.9 - MSCI APxJ: +1.03% to 449.9 - Euro Stoxx 50: +1.37% to 2581.7 - S&P500: +0.43% to 1416.0 MARKET OUTLOOK: By Ng Weiwen, Macro Analyst US equity indices gyrated during the trading session but closed higher. Republican House Speaker Boehner expressed concern that there was no substantive progress on the fiscal cliff negotiations, implicitly rejecting Obama's opening bid in budget negotiations. Specifically, the White House -in its formal opening bid- is seeking US$ 1.6 trillion in tax hikes and will concede $400bn cuts in Medicare and other areas. Noteworthy, Obama has signalled that he will not insist a return to Clinton-era tax rates for the wealthy. In the weeks ahead, we expect markets to turn jittery, responding to every single headline on the fiscal cliff negotiations. Gyrations are likely to be the norm rather than the exception - unless we have a grand bargain with a blueprint (details included) on how the nation intends to tackle the impending fiscal cliff. With the year drawing to a close and talks being inconclusive at this juncture, will brinkmanship prevail? While one month might be too short to iron out fundamental differences between the Democrats and Republicans, a deal could still possibly be struck by the end of this year on preliminary measures or framework of deficit reduction to avert the cliff , leaving most of the heavy lifting -overhauling the tax code and healthcare entitlement - to 2013. Even if equities might retrace lower in the near term, a major sell-off is unlikely at this juncture (unless the US economy fails to avert the dreaded fiscal cliff) as markets are expecting some form of a deal by Christmas and markets do not want to miss out on the rally if the grand bargain materialises. So over the next few trading sessions, we could see the S&P 500 (SPX) flirting with the 50dma resistance level -which it will need to convincingly clear to go even higher. Meanwhile, at home, the STI gapped up during yesterday’s trading session, presenting a ‘window of opportunity’ for near-term trading -provided US fiscal budget negotiations continue to remain constructive and the bears don’t overwhelm the bulls & close the breakaway gap (formed to the upside). Thus, we suggest to long (with tight stops) Straits Times Index SGD5 CFD (STI) and Singapore Index SGD20 CFD (SMSCI). MACRO DATA In the US, 3Q12 real GDP was revised upwards from 2.0% (adv) to 2.7% (2nd est.) q-q saar on the back of upward revisions to exports and private inventories, which offset -to some extent- downward revisions to consumption spending and non-residential investment. On the labour front, unemployment claims declined 23,000 wk-on-wk to 393,000 for the week ending Nov 24, as the effect of Hurricane Sandy subsided. Meanwhile, pending home sales rose 5.2% m-m to 104.8 in Oct - the highest since 2007. In the EZ, economic sentiment rose 1.4 pts m-m to 85.7 in Nov, after 8 consecutive months of contraction. In Hong Kong, retail sales value grew by 4.0% y-y in Oct, slower compared to the 9.4% y-y growth in Sep. Retail sales volume rose by 3.6% y-y, compared to 8.5% y-y gain in Sep. The bolstering effect of China’s bottoming out toward Hong Kong’s economy is still likely to be very limited in the near term. In South Korea, manufacturers’ sentiment fell to 67 for Dec, from the Nov reading of 70, marking the lowest level since April 2009, as gains in the won threaten to slow a rebound in exports. In Japan, total store sales fell by 1.7% y-y in Oct, compared to 3.6% y-y drop in Sep. Retail sales fell by 1.2% y-y, compared to 0.4% y-y gain in Sep. Wholesale fell by 1.8% y-y, compared to 4.9% y-y drop in Sep. The government will announce a second round of stimulus today, tapping about 1 trillion yen ($12.2 billion) in reserve funds. The plan would follow about 750 billion yen of stimulus announced last month.Japan’s economy may fall into a recession in the three months ending December, based on the definition of a recession as two consecutive quarters of contraction. In Australia, new home sales rose by 3.4% m-m in Oct, the first monthly gain in 4 months, after the 3.7% m-m gain in Sep. led by apartments, indicating the central bank’s interest-rate reductions are luring buyers. A separate report shows that the nation’s business investment rose by 2.8% q-q in 3q12, after it advanced 3.4% q-q in 2q12. The RBA Governor Glenn Stevens held the key interest rate at 3.25% this month, having cut the benchmark five times since embarking on a series of reductions in November 2011 as the country’s resource boom cools. He said in minutes of the meeting that “further easing may be appropriate.”

Regional Market Focus

30 November 2012

3 of 15

Singapore The benchmark STI closed up to 3,045.9 (+1.13%). The 2.7bn shares traded

were worth S$1.6bn. SembCorp Marine rallied 4.1% after announcing a contract win for a 7th drillship

for Sete Brasil. Olam International closed up 4.0% as market participants took faith in additional disclosures presented by the management.

Our top picks for the Singapore Market are SIAEC, SATS & Capitaland. SIAEC & SATS are yield plays that benefit from strong underlying business trends. Capitaland would be a beneficiary of the stabilisation of property prices and bottoming out of economic conditions in China.

Close +/- % +/-FSSTI 3045.90 34.13 1.13P/E (x) 11.62P/Bv (x) 1.38

3.05Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

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

Source: Bloomberg

Thailand The composite SET index continued its rebound on Thu amid optimism that a

budget deal could be reached to avoid big spending cuts and tax hikes before the end of the year but the main index failed to retest the previous high as sporadic bouts of short-term profit taking set in along the way.

The Thai baht weakened slightly to 30.69 per US dollar (0800 hrs Thailand time). In view of a sustained strong rally in the Thai stock market throughout the week and return of some foreign buying with the SET index now inching closer to the previous high of the year around 1315, investors should be wary of profit taking. Overall we expect the SET index to trade in a narrower range of 1303-1315 points today.

The short-term strategy is still to be selective in stocks. For MSCI Nov 2012 semi-annual index review, all changes will be implemented as of today’s close which may affect shares to be deleted and added: (1) four securities will be added to the MSCI Global Standard Indices: AOT, BGH, CPN and MAKRO, (2) nine securities: BAFS, GOLD, LOXLEY, ROJNA, SRICHA, SITHAI, SVI, TK and VIBHA will be added to and five securities: EGCO, MINT, RATCH, ROBINS and TRUE will be deleted from the MSCI Global Small Cap Indices.

Resistance on the main index is pegged at 1315-1320 and support at 1303-1298 today.

Close +/- % +/-SET INDEX 1309.57 9.63 0.74P/E (x) 16.50P/Bv (x) 2.22

3.40Dividend Yield

STOCK EXCH OF THAI INDEX

900

1000

1100

1200

1300

1400

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

Source: Bloomberg

Indonesia

Composite index of Indonesian stocks moderately rebounded Thursday (29/11), as most Asian markets rose on optimism about a deal to avert the “fiscal cliff” in the US. The Jakarta Composite Index advanced 14.263 points, or 0.33%, to close at 4,319.086. The advance included five of the 9 major industry groups, led by basic industry sector which gained 2.28%, trailed by consumer goods sector that climbed 1.13%, and trade and services sector added 0.70%. Commodity stocks however remained pressured, with the mining sector slipped 0.47%, and agriculture sector trimmed 0.16%. LQ45 – the index tracking Indonesia’s blue-chip stocks – gained 2.578 points, or 0.35%, to close at 738.454. More than 131 shares advanced, 111 shares declined, and 227 shares remained unchanged Thursday on the Indonesia Stock Exchange, where 3.717 billion shares worth IDR 4.067 trillion traded on the regular board. Foreign investors posted net sales worth IDR 85.137 billion.

The JCI looked set for a positive move today, as markets in the US and Asia hold gains on hope about short-term fix to avert the so called “fiscal cliff” in the US. We expect the JCI to trade within 4,270 – 4,350 range.

Close +/- % +/-JCI Index 4319.09 14.26 0.33P/E (x) 16.90P/Bv (x) 2.85

2.14Dividend Yield

JAKARTA COMPOSITE INDEX

3400

3600

3800

4000

4200

4400

4600

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

Source: Bloomberg

Regional Market Focus

30 November 2012

4 of 15

Sri Lanka The Colombo bourse recorded positive closures on all 3 indices and closed the

day by retaining within the green territory. The benchmark ASPI stood at 5,363.60 after gaining 28.92 points and the MPI closed at 4,890.54, gained by 32.39 points. The S&P SL20 Price Index gained 17.39 points and closed at 2,952.16. The market capitalization was LKR 2.06Tn; this recorded a year to date loss of 6.97%. The reported turnover for the day stood at LKR 877.5Mn. Diversified Holdings (LKR 370Mn) and Bank Finance Insurance (LKR 195Mn) were the best performing sectors during the day. A total of 25.4Mn shares changed hands during the day; this was an Increase of 60.53% against the previous day. Price gainers outnumbered the price losers by 99:83. The day recorded a net foreign inflow of LKR 461.7Mn and extended the year to date net foreign inflow to LKR 35.46Bn.

Close +/- % +/-CSEALL Index 5363.60 28.92 0.54P/E (x) 11.14P/Bv (x) 1.60

2.69

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

5000

5500

6000

6500

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

Source: Bloomberg

Australia

The Australian share market on Thursday closed higher, buoyed by encouraging comments by US politicians about avoiding the "fiscal cliff". At close, the benchmark S&P/ASX200 index was up 30.4 points or 0.68 per cent to 4,477.7.

The Australian market is expected to open higher after gains on Wall Street overnight. The SFE Futures 200 is pointing upwards 22 points or 0.49 per cent to 4,511.

In economic news on Friday, the Reserve Bank of Australia to release financial aggregates for October.

Close +/- % +/-S&P/ASX 200 INDEX 4477.73 30.42 0.68P/E (x) 17.35P/Bv (x) 1.78

6.40

STANDARD & POORS/ ASX 200 INDEX

Dividend Yield

3800

4000

4200

4400

4600

4800

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

Source: Bloomberg

Hong Kong

Chinese stocks continued its downbeat trend, with the benchmark Shanghai Composite Index closing at 1,963.49, down 0.51 percent from the previous close, another recorded low in four-year. The search of the bottom continues.

Hong Kong shares ended higher on Thursday, tracking gains on Wall Street overnight. The benchmark Hang Seng Index gained 213.91 points to 21,922.89 points, trading range was between 21, 786.03 and 21,996.40 points. Turnover totaled 54.46 billion HK dollars, back to the HKD 50 billion level.

The market speculated on the rebound of retail sales in 4Q12, the luxury goods sector rally. Luk Fook Hold (590.HK) soared 10.2%, Chow Tai Fook (1929.HK) and Chow Sang Sang (116.HK) gained 5.4% and 2.8% respectively.

Technically, the HSI is expected to consolidate at around 22,000 with near term support and resistant at 21,700 and 22,000 respectively.

Close +/- % +/-HSI INDEX 21922.89 213.91 0.99P/E (x) 11.22P/Bv (x) 1.46

3.24Dividend Yield

HANG SENG INDEX

17000

18000

19000

20000

21000

22000

23000

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

Source: Bloomberg

Regional Market Focus

30 November 2012

5 of 15

Market News

US Foreign central banks' overall holdings of U.S. marketable securities at the Federal Reserve rose in the latest week, data from the U.S.

central bank showed on Thursday. The Fed said its holdings of U.S. securities kept for overseas central banks rose $9.4 billion in the week ended November 28, to stand at $3.20 trillion. The breakdown of custody holdings showed overseas central banks' holdings of Treasury debt rose by $11.5 billion to stand at $2.85 trillion. Foreign institutions' holdings of securities issued or guaranteed by the biggest U.S. mortgage financing agencies, including Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), fell by $2.4 billion to stand at $317 billion. The Fed said its holdings of so-called "other" securities held in custody and reported at face value rose $293 million to stand at $36.2 billion. These securities include non-marketable U.S. Treasury securities, supranationals, corporate bonds, asset-backed securities and commercial paper. (Source: Reuters)

The US economy expanded at a "measured pace" in recent weeks as gains in consumer demand and housing were tempered by a slowdown in manufacturing and the impact of superstorm Sandy, the Federal Reserve said on Wednesday. "Consumer spending grew at a moderate pace in most districts, while manufacturing weakened," the central bank said in its Beige Book business survey, which is based on reports from the Fed's 12 district banks. "Contacts in a number of districts expressed concern and uncertainty about the federal budget, especially the fiscal cliff." The report indicates that Fed policymakers are unlikely to curtail monthly purchases of US$40 billion in housing debt to boost the three- year economic expansion. It also bolsters Fed chairman Ben Bernanke's view that an agreement on reducing long-term federal budget deficits without abrupt tax increases and spending cuts would remove a barrier to growth. (Source: BT Online)

Singapore Singapore attracted close to 3.5 million visitors in the second quarter of this year, 8 per cent higher than the same period last year.

Together, these visitors brought in tourism receipts (TR) of $5.5 billion - a 4 per cent increase from last year. According to data released yesterday by the Singapore Tourism Board (STB), the numbers for Q2 mean that close to 7.1 million visitors came to Singapore for the first half of the year, while TR came in at $11.5 billion. Earlier this year, STB said it expects Singapore to see a total of 13.5 to 14.5 million visitors in 2012, and rake in $23 billion to $24 billion in TR. Malaysia saw the largest jump in TR growth in Q2 at 29 per cent, compared with the same period last year. This was driven by an increase in business traffic and higher shopping expenditure, said STB. (Source: BT Online)

The Republic has slipped from first to third place in the latest rankings of Asia-Pacific cities based on their prospects next year in two areas - real-estate investment and real-estate development. In the rankings published by Urban Land Institute (ULI) and PricewaterhouseCoopers (PWC), Jakarta emerged as the city with the most promising prospects in 2013 for both the rankings. It is the first time the Indonesian capital has topped the annual rankings, which are into their seventh year. On the investment scorecard, Shanghai was placed second. For development prospects, a group of "secondary cities" in China were ranked second. These are second or third-tier cities such as Chongqing, Tianjin and Shenyang. (Source: BT Online)

Hong Kong

The import and export value of the Chinese electronics and information technology industry reached 954.6 billion U.S. dollars in the first 10 months, up 3.3 percent from the same period last year, official data revealed on Thursday. Among the total, export of electronic goods grew 3.9 percent year on year to 559.7 billion dollars, which was 0.5 percentage points higher than that of the first three quarters, according to statistics released by the Ministry of Industry and Information Technology (MIIT). (Source: peopledaily.com.)

The People's Insurance Company (Group) of China (PICC) will increase its initial public offering (IPO) proportion from 5 percent to 7.5 percent in Hong Kong as its IPO has been oversubscribed by the city's investors, the company said on Thursday. The IPO of the mainland's second-largest insurer has been 15 times oversubscribed in Hong Kong as of noon on Thursday, so the company decided to give a greater percentage of the offering to Hong Kong investors in order to meet their strong demand for the shares, according to PICC. The insurer has set a 3.42-4.03 Hong Kong dollars indicative price range for the offering, meaning it could raise up to 3.6 billion U.S. dollars. That would make it the biggest IPO in Hong Kong this year and the largest by a Chinese state-owned company since 2010. (Source: peopledaily.com.)

The number of mobile phone users in China increased by 109.2 million in the first 10 months to reach 1.095 billion by the end of October, official figures showed Thursday. Meanwhile, the number of users of terminals based on third-generation technology increased 83.99 million during the 10-month period, reaching 212.4 million as of the end of October, according to data released by the Ministry of Industry and Information Technology. During the first 10 months, the country's telecom sector reported 893.7 billion yuan in main business revenues, up 9.2 percent year on year. Revenues from mobile telecommunication services grew 11.1 percent to 658.6 billion yuan, accounting for 73.7 percent of the sector's total revenues during the period, up from 72.4 percent in the equivalent spell last year, the data showed. (Source: peopledaily.com.)

Thailand Foreign investors remained net buyers of Thai shares worth Bt293.29mn on Thu. (Source: Bisnews)

Thailand’s economic growth is at risk of being derailed by overseas risk factors, Bangkok Bank executive chairman Kosit Panpiemras

said on Thu. He projected the country’s GDP growth for next year at 4%-5% and warned the government that the use of budget spending to spur the economy could push the country’s public debt levels higher. (Source: Krungthep Turakij)

Asia Investment International has launched a stake sell-down of up to 111.2mn shares of Thailand’s Robinson Department Store

Regional Market Focus

30 November 2012

6 of 15

(ROBINS) in a range of Bt59 to Bt61.50/share, according to a term sheet seen by Reuters on Thu. (Source: Reuters)

Indonesia The government must increase new entrepreneurship in Indonesia to boost high economic growth. National property tycoon, said the

raising of growth could be achieved by creating entrepreneurs at a total of two percent of total population. Entrepreneurs currently make up only one percent, and we must raise it to two percent. The government can allot one percent, or IDR 16 trillion (USD 1.66 billion) of the total 2013 State Budget to establish new entrepreneurs. Vice President of the Republic of Indonesia, said Indonesia’s economic growth was quite high, even in the midst of weakening global economic growth. Global economic turbulence was estimated to still occur in 2013, and Indonesia might still be affected by it. In order to lessen the global economic impact, the nation’s domestic political condition must be conducive. Economy-wise, supply must be improved, by conducting efficiency in logistics, which included improvements on transportation and infrastructure. Administration and permit issuance from these sectors also needed to be improved, in addition to increasing the yield for the agriculture sector—which would increase employment in this sector. According to data from the National Development Planning Agency (BPPN), the 2013 economic growth target of 6.8 percent would be supported by export and import growth of 11.7 percent and 13.5 percent, respectively. The three main sectors that contribute economic growth were transportation and communication at 11.1 percent, trade, hotel and restaurant at 8.9 percent and development sector of 7.5 percent. (Source: Indonesia Finance Today)

The government estimates to achieve the economic growth target of 7.7 percent – in accordance to the 2011 to 2014 National Medium Term Development Plan (RPJMN), the contribution of investment to gross domestic product (GDP) should reach 35-40 percent. Head of Investment Coordinating Board (BKPM), said based on the normal investment need for every one percent of economic growth an investment contribution of 5.2 percent to GDP is needed. Thus, if the government wants to increase economic growth at above seven percent, then investment should contribute 35-40 percent of GDP. (Source: Indonesia Finance Today)

Sri Lanka Containers handled at Sri Lanka's ports fell 3.3 percent to 329,199 in September 2012 from a year earlier, with domestic containers

falling 8.3 percent to 86,273 amid an economic slowdown, while transshipment volumes also fell. That 335 ships called at ports in the Indian Ocean island in September down 25 from a year earlier. Up to September 3,127 ships had called down 133 vessels or 4.1 percent. In September 79,106 domestic containers were handled, down 8.3 percent or 7,167 twenty foot equivalent units. In August also domestic volumes fell 9.8 percnet. Year to date volumes were still up 1.4 percent to 776,557. Transshipment volumes fell 2.1 percent to 242,454 TEUs in September with the total up to September down 1.5 percent to 2,293,967. Total containers handled up to September were down 0.4 percent, 3,151,804 TEUs. Bulk cargo handled was down 1.2 percent to 5.53 million metric tonnes, but from January to September volumes were up 1.6 percent to 49.04 million metric tonnes. (lbo.lk)

Australia While the costs of the massive Gorgon Australian natural-gas project have increased by an unspecified amount, the project remains

economical, Chevron's chief executive said. Chevron chief executive John Watson said the costs of the Australian project have grown from the original estimate of $43 billion, citing the effect of the escalation of the Australian currency and the impact of tropical cyclones that have delayed operations. Chevron has also struggled to find skilled labour amid the boom in the Australian energy and mining sector. Source: The Australian

RIO Tinto has set out to slice $US7 billion from its cost base in the next two years, with the knife to cut most deeply at its ailing global aluminium business and its Australian coal operations.The attack on costs is a response to what Rio chief executive Tom Albanese said was the "unsustainable cost increases of the past few years". He said that in addition to the "tough action" to roll back cost increases, Rio would also maintain a relentless focus on improving productivity. Source: The Australian

The Russian central bank is increasing its Australian-dollar purchases by at least $20 billion and could be seeking to allocate up to 10 per cent of its reserves, making it harder for the Reserve Bank to push down the currency. A source familiar with the Bank of Russia said it had already achieved a desired 1 per cent holding of its foreign exchange reserves in dollars and began buying late last year. Members of the BoR board declared their intention to buy that amount in 2011. The decision has been made, reportedly, to go beyond 1 per cent and the bank is targeting a holding between 5 per cent and 10 per cent of reserves. Australian Commonwealth government bonds are being bought in small tranches; semi-government bonds are as yet excluded. Russia’s foreign exchange reserves total $US522.2 billion. Each percentage point of the reserves translates into more than $US5 billion of Australian dollars. If the central bank reaches the 10 per cent target – although this is deemed unlikely by the source – it would have to buy about $US47 billion worth of dollars. Source: Financial Reivew

Regional Market Focus

30 November 2012

7 of 15

80.20 -0.16% 299.35 +0.89%

109.29 -1.13% 1.615 -0.01%

1,725.70 -0.03% 13,021.82 +0.28%

528.28 +1.19% MSCI SEA 841.17 +0.84%

2,581.69 +1.37% 52.4

Dollar Index

Gold (US$/Oz)

ThomReuters/JefferiesCRB

DJI

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

Euro Stoxx 50

Source: Bloomberg

MSCI Asia x-Japan

JPM Global Composite PMI SA

1.20

1.40

1.60

1.80

2.00

2.20

2.40

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

700720740760780800820840860880

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

11,000

12,000

13,000

14,000

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

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

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

48

49

50

51

52

53

54

55

56

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

1,500

1,600

1,700

1,800

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

78

80

82

84

Nov-1

1

Dec-1

1

Jan-1

2

Feb

-12

Ma

r-12

Apr-1

2

Ma

y-12

Jun-1

2

Jul-1

2

Aug-1

2

Sep-1

2

Oct-1

2

260

280

300

320

340

Nov-1

1

Dec-1

1

Jan-1

2

Feb

-12

Ma

r-12

Apr-1

2

Ma

y-12

Jun-1

2

Jul-1

2

Aug-1

2

Sep-1

2

Oct-1

2

90

100

110

120

130

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug

-12

Sep

-12

Oct-1

2

420

440

460

480

500

520

540

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Aug-12

Sep-12

Oct-1

2

Regional Market Focus

30 November 2012

8 of 15

Valuations of Major Regional Markets

14.2 1.38

14.6 2.22

11.5 1.46

16.0 2.85

13.7 1.79

Source: Bloomberg

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

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)

Hang Seng Index, P/B (X)

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

5

10

15

20

Dec-0

8

Ma

r-09

Ju

n-0

9

Se

p-0

9

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

0.5

1.0

1.5

2.0

2.5

Dec-0

8

Ma

r-09

Ju

n-0

9

Se

p-0

9

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

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Regional Market Focus

30 November 2012

9 of 15

Source: Bloomberg

World Index

JCI 0.33% 4,319.09

HSI 0.99% 21,922.89

KLCI 0.05% 1,607.32

NIKKEI 0.99% 9,400.88

KOSPI 1.15% 1,934.85

SET 0.74% 1,309.57

SHCOMP -0.51% 1,963.49

SENSEX 1.75% 19,170.91

ASX 0.68% 4,477.73

FTSE 100 1.15% 5,870.30

DOW 0.28% 13,021.82

S&P 500 0.43% 1,415.95

NASDAQ 0.68% 3,012.03 COLOMBO 0.54% 5,363.60

STI 1.13% 3,045.90

Regional Market Focus

30 November 2012

10 of 15

Date Statistic For Survey Prior Date Statistic For Survey Prior

11/30/2012 Kansas City Fed Manf. Activity Nov -1 -4 11/30/2012 Bank Loans & Advances (YoY) Oct -- 16.50%

11/30/2012 Personal Income Oct 0.20% 0.40% 11/30/2012 Credit Card Bad Debts Oct -- 20.1M

11/30/2012 Personal Spending Oct 0.00% 0.80% 11/30/2012 Credit Card Billings Oct -- 3096.2M

11/30/2012 PCE Deflator (MoM) Oct 0.10% 0.40% 11/30/2012 M1 Money Supply (YoY) Oct -- 3.20%

11/30/2012 PCE Deflator (YoY) Oct 1.80% 1.70% 11/30/2012 M2 Money Supply (YoY) Oct -- 6.10%

11/30/2012 PCE Core (MoM) Oct 0.20% 0.10% 12/4/2012 Electronics Sector Index Nov -- 47.5

11/30/2012 PCE Core (YoY) Oct 1.70% 1.70% 12/4/2012 Purchasing Managers Index Nov -- 48.3

11/30/2012 NAPM-Milw aukee Nov 47 43.3 12/5/2012 Automobile COE Open Bid Cat A 5-Dec -- 77291

11/30/2012 Chicago Purchasing Manager Nov 50.5 49.9 12/5/2012 Automobile COE Open Bid Cat B 5-Dec -- 93004

12/3/2012 Markit US PMI Final Nov 51.4 -- 12/5/2012 Automobile COE Open Bid Cat E 5-Dec -- 93990

12/3/2012 ISM Manufacturing Nov 51.3 51.7 12/7/2012 Foreign Reserves Nov -- $254.22B

12/3/2012 ISM Prices Paid Nov 54.5 55 12/11/2012 Singapore Manpow er Survey 1Q -- 19%

12/3/2012 Construction Spending MoM Oct 0.40% 0.60% 12-17 DEC Retail Sales (YoY) Oct -- 2.50%

12/4/2012 Total Vehicle Sales Nov 14.75M 14.22M 12-17 DEC Retail Sales (MoM) sa Oct -- -0.50%

12/4/2012 Domestic Vehicle Sales Nov 11.35M 11.10M 12/14/2012 Unemployment Rate (sa) 3Q F -- 1.90%

Date Statistic For Survey Prior Date Statistic For Survey Prior

11/30/2012 Foreign Reserves 23-Nov -- $180.6B 11/30/2012 Money Supply M1 - in HK$ (YoY) Oct -- 10.30%

11/30/2012 Forw ard Contracts 23-Nov -- $25.0B 11/30/2012 Money Supply M2 - in HK$ (YoY) Oct -- 11.00%

11/30/2012 Total Exports YOY% Oct -- -0.10% 11/30/2012 Money Supply M3 - in HK$ (YoY) Oct -- 10.90%

11/30/2012 Total Exports in US$ Million Oct -- $20477M 11/30/2012 Govt Mthly Budget Surp/Def HK$ Oct -- -22.0B

11/30/2012 Total Imports YOY% Oct -- -7.20% 12/5/2012 Purchasing Managers Index Nov -- 50.5

11/30/2012 Total Imports in US$ Million Oct -- $17495M 12/7/2012 Foreign Currency Reserves Nov -- $301.7B

11/30/2012 Total Trade Balance Oct -- $2982M 12/11/2012 Hong Kong Manpow er Survey 1Q -- 12%

11/30/2012 Current Account Balance (USD) Oct $697M $1769M 12/13/2012 Industrial Production (YoY) 3Q -- -2.90%

11/30/2012 Overall Balance in US$ Million Oct -- $2171M 12/13/2012 Producer Price (YoY) 3Q -- -0.70%

11/30/2012 Business Sentiment Index Oct -- 49.9 12/18/2012 Unemployment Rate SA Nov -- 3.40%

12/3/2012 Consumer Price Index (YoY) Nov -- 3.32% 12/19/2012 Composite Interest Rate Nov -- 0.36%

12/3/2012 Consumer Price Index NSA (MoM) Nov -- 0.13% 12/20/2012 CPI - Composite Index (YoY) Nov -- 3.80%

12/3/2012 Core CPI (YoY) Nov -- 1.83% 12/21/2012 Bal of Paymts - Current A/C 3Q -- -$9.35B

12/4/2012 Consumer Confidence Nov -- 77.8 12/21/2012 Bal of Paymts - Overall 3Q -- -$7.11B

12/4/2012 Consumer Confidence Economic Nov -- 68.1 12/27/2012 Exports YoY% Nov -- -2.80%

Source: BloombergSource: Bloomberg

Source: Bloomberg

Thailand Hong Kong

Source: Bloomberg

US Singapore

Economic Announcement

Regional Market Focus

30 November 2012

11 of 15

Date Statistic For Survey Prior Date Statistic For Survey Prior

12/3/2012 Inflation (YoY) Nov 4.60% 4.61% 11/30/2012 CPI Moving Average (YoY) Nov -- 6.80%

12/3/2012 Inflation NSA (MoM) Nov 0.30% 0.16% 11/30/2012 CPI (YoY) Nov -- 8.90%

12/3/2012 Core Inflation (YoY) Nov 4.56% 4.59% 12/6/2012 Repurchase Rate 6-Dec -- --

12/3/2012 Exports (YoY) Oct -4.70% -9.40% 12/6/2012 Reverse Repo Rate 6-Dec -- --

12/3/2012 Total Imports (YoY) Oct 0.80% 1.20% 10-12 DEC Exports YoY% Oct -- -6.60%

12/3/2012 Total Trade Balance Oct $674M $553M 10-12 DEC Imports YoY% Oct -- -25.40%

03-07 DEC Danareksa Consumer Confidence Nov -- 93.2 14-31 DEC GDP (YoY) 3Q -- 6.40%

03-06 DEC Foreign Reserves Nov -- $110.30B 12/31/2012 CPI Moving Average (YoY) Dec -- --

03-06 DEC Net Foreign Assets (IDR Tln) Nov -- 1025.91T 12/31/2012 CPI (YoY) Dec -- --

03-04 DEC Consumer Confidence Index Nov -- 119.5

07-13 DEC Money Supply - M1 (YoY) Oct -- 21.30%

07-13 DEC Money Supply - M2 (YoY) Oct -- 18.20%

10-20 DEC Total Local Auto Sales Nov -- 106807

10-20 DEC Total Motorcycle Sales Nov -- 626901

12/11/2012 Bank Indonesia Reference Rate 11-Dec -- 5.75%

Date Statistic For Survey Prior

11/30/2012 Private Sector Credit MoM% Oct 0.30% 0.30%

11/30/2012 Private Sector Credit YoY% Oct 4.10% 4.00%

12/3/2012 AiG Performance of Mfg Index Nov -- 45.2

12/3/2012 TD Securities Inflation MoM% Nov -- 0.10%

12/3/2012 TD Securities Inflation YoY% Nov -- 2.40%

12/3/2012 RPData-Rismark House PX Actual Nov -- -1.00%

12/3/2012 Company Operating Profit QoQ% 3Q -- -0.70%

12/3/2012 Retail Sales s.a. (MoM) Oct -- 0.50%

12/3/2012 Inventories 3Q -- 0.60%

12/3/2012 ANZ Job Advertisements (MoM) Nov -- -4.60%

12/3/2012 RBA Commodity Price Index Au Nov -- 87.3

12/3/2012 RBA Commodity Index SDR YoY% Nov -- -16.00%

12/4/2012 Building Approvals (MoM) Oct -- 7.80%

12/4/2012 Building Approvals (YoY) Oct -- 12.40%

12/4/2012 Current Account Balance 3Q -- -11801M

Source: Bloomberg

Source: Bloomberg

Indonesia

Australia

Sri Lanka

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