MCI (P) 029/11/2013 Ref No: RM2013_0222 1 of 14

Regional Market Focus

Phillip Securities Research Pte Ltd

19 November 2013

Thailand

Samart I-Mobile – Trade Flash Recommendation: BUY Previous close: Bt1.70 Fair value: Bt5

SIM reported 3QCY13 profit of Bt221.05mn, up a whopping 531.66% y-y as smart phone sales rose to 0.41mn units in 3QCY13 from 0.17mn units in 3QCY12.

In 9MCY13, net profit swelled 763.78% y-y to Bt654.52mn.

We expect SIM to deliver CY13 net profit of Bt868.63mn, up as much as 423.8% y-y.

We call a ‘BUY’ on SIM shares with a CY14 target price of Bt5/share.

MCOT – Company Results Recommendation: BUY Previous close: Bt33.50 Fair value: Bt39.50

MCOT posted weaker-than-expected 3QCY13 net profit, falling 21.5% y-y. The quarterly net profit was a 4.4% below forecast.

The fourth quarter looks better sequentially on seasonally stronger demand and MCOT’s TV programs gathering popularity. However, on y-y basis, earnings would still soften.

We cut down our CY13-CY14 earnings projections. Assigning 15x P/E, we arrive at price target of Bt39.50/share. At current share price, we reiterate a ‘BUY’ call for MCOT.

Thai Airways – Company Results Recommendation: NEUTRAL Previous close: Bt17.70 Fair value: Bt18.10

THAI swung to a massive net loss of Bt6,195mn in 3QCY13 from a net profit in 3QCY12. The quarterly loss was 8.8% bigger than our forecast.

Our forecast also suggests 4QCY13 results will be weaker than 4QCY12 on expectations that passenger yield will remain lower than a year ago and aircraft impairment charges will be booked in 4QCY13.

We leave our CY13-14 estimates for THAI unchanged. In our view, third-quarter loss appears to have already been discounted into the share price. We reiterate a ‘NEUTRAL’ stance on THAI shares with a CY14 target price of Bt18.10/ share.

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19 November 2013

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Hong Kong

Bank of Chongqing – Stable performance growth with the good asset quality Rating: Neutral Closing price: 5.89 Target price: 5.61

BOCQ (or the Group) was listed in H Shares on 6th Nov 2013, which was the first domestic city commercial bank listed in Hong Kong, and the second local listed bank from Chongqing after CRCB. It provides the good beginning for other city commercial banks in future. BOCQ recorded 7.8 times oversubscription and the share price closed below the offering price of HK$6 slightly on the first trading day, but overall, it owns the good operating performance;

Chongqing is the largest in size and the most populous among the four directly administered municipalities in China. Meanwhile, it also designated as one of the five national central cities (including Beijing, Shanghai, Tianjin and Guangzhou). In 2011, the added value of Chongqing’s financial industry accounted for over 7% of Chongqing’s GDP, only after Beijing and Shanghai, and such portion increased to 8% in 2012. By the end of 2012, Chongqing’s banking penetration was 136%, the lowest among the Big-4, representing a significant growth potential in banking sector;

Among all Chinese banking institutions, the scales in both asset and profit of city commercial banks are smaller than middle and large-sized commercial banks, and according to total assets, their market shares only were 9.2% of total assets of all banking institutions. As at the end of 1H2013, the market share of total assets of city commercial banks recorded 10.4% in Chongqing. Total assets of BOCQ achieved to RMB188.428 billion, increased by 20.7% compared with the end of 2012, and ranked No.5 with the market share of 6.1% approximately. Additionally, BOCQ’s market shares of total loans and deposits were 4.4% and 5.4% respectively, both ranked No.6;

From 2010 to 2012, BOCQ’s operating income increased at a CAGR of 29.5% from RMB2.78 billion to RMB4.66 billion, with a CAGR of 32.1% in net profit. As at the end of Jun 2013, BOCQ’s net commission fees increased strongly by 263.37% y-y to RMB367 million, compared with CRCB’s growth rate of 69.18%;

As at the end of 1H2013, total assets of BOCQ increased by 20.66% to RMB188.428 billion compared with the end of 2012, and net assets grew 15.39% to RMB9.529 billion, with the BVPS of RMB4.71, up 15.39%;

The Group’s net loans increased by 10.9% to RMB83.469 billion compared with the end of 2012 while the deposits increased by 22.4%. The proportion of net loans to total assets dropped from 48% in 2012 to 44% in 1H2013. The loan-to-deposit ratio decreased from 65.99% to 59.79% during the same period. In recent years, BOCQ put some parts of funds into off-balance-sheet businesses to ensure the decrease of the loan-to-deposit ratio and the fully use of capital to gain the stable interest incomes, but the risks of such funds are more difficult to evaluate;

BOCQ owned quite good ability of risk control, and both ratio and the amount of the NPLs are much lower than the peers based on the small base. As at the end of 2010, 2011 and 2012 and 1H2013, the Group’s NPL ratio was 0.36%, 0.35%, 0.33% and 0.38%, with the ratio of allowance for impairment losses to NPLs of 534.0%, 526.7%, 537.7% and 458.3% respectively;

The funds of IPO are mainly used for increasing the bank’s capital, which will ease the capital pressure in the next two years. By the end of 1H2013, BOCQ’s CAR and Core CAR were 12.78% and 9.81%, up 0.42ppts and 0.15ppts compared with the end of 2012 respectively;

In all, BOCQ’s performance maintains stable growth, but the asset quality may trend to deteriorate in future. Additionally, under the current lower valuation of banking sector, according to 3-stage DDM and P/B method, we estimate the 12-m target price of BOCQ would be HK$5.61, around 4.8% lower than the latest closing price, equivalent to 6.9xP/E and 1.2xP/B in 2014 respectively, initially recommend Neutral rating.

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Macro Data

USA: U.S. interest-rate swaps fell to the least in more than a year relative to Treasuries as traders sought higher-yielding assets outside of government debt on bets Janet Yellen will keep borrowing costs down. The difference between the five-year Treasury rate and similar-maturity swap narrowed to 10 basis points, the least since Nov. 2, 2012, based on closing levels. The spread shrinks as investors seek to receive a fixed-interest rate on contracts backed by a bank over the relative safety of Treasuries. Singapore: Singapore’s non-oil domestic exports (NODX) rose 2.8 percent y-o-y in October, on the back of strong exports of petrochemicals and integrated circuit parts as it snapped its eight consecutive months downward trend, said the trade agency IE Singapore. NODX stood at 1.2 percent contraction in September. Across sectors, electronics exports fell 1.4 percent, however, this was outweighed by the 4.9 percent increase in non-electronic exports. On a month-on-month basis, NODX jumped 3.2 percent in October. Thailand: The July-September gross domestic product (GDP) rose 1.3 percent as compared to the revised flat reading in the second quarter of the year, the National Economic & Social Development Board said. GDP grew 2.7 percent year-on-year, after a revised 2.9 percent y-o-y expansion a quarter ago. According to Bloomberg, the state agency revised its full-year expansion forecast downwards to 3 percent from a range of 3.8 percent to 4.3 percent projected in August, and said the economy may grow 4 percent to 5 percent in 2014. The agency also slashed its expectations of export growth to zero this year, from an earlier estimate of 5 percent. China: Average new home prices in China continued its rising trend as the October home prices rose 9.6 percent, its tenth straight months of year-on-year increases, according to data from National Bureau of Statistics (NBS). New home prices in China’s four major cities posted the largest gains since January 2011. Hong Kong: Unemployment rate remains steady at 3.3 percent in the three-months to October, as resilient domestic demand kept the labor market stable, the Census and Statistics Department said. Source: Phillip Securities Research Pte Ltd

Strategy

SECTOR/STRATEGY REPORTS: - Sector Reports : Commodities,18 Sep / Banking, 9 Sep / Telecommunications, 9 Sep / Offshore & Marine, 26 Aug - Country Strategy : S’pore, 20 Sep / China & HK 1 Nov / Thai, 6 Nov - Macro Trader : 9 Sep, Update

Morning Commentary

STI: +0.05% to 3203.0 KLCI: +0.14% to 1792.4 JCI: +1.34% to 4393.6 SET: +0.23% to 1423.9 HSI: +2.73% to 23660 HSCEI: +5.65% to 11307 Nifty: +2.19% to 6189 ASX200: -0.31% to 5384.6 Nikkei: -0.01% to 15164 S&P500: -0.37% to 1791.5 MARKET OUTLOOK: This week’s webinar has been archived at www.uniphillip.com > education programs > Phillip Securities Research Webinar. In it, we feature Sin Heng Heavy Machinery, Boustead, Starhub and Genting. This webinar has been archived at www.uniphillip.com > education programs > Phillip Securities Research Webinar.

Regional Market Focus

19 November 2013

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Singapore The benchmark STI closed 1.76 points higher at 3.203.03 (+0.05%). The 2.4bn

shares traded were worth S$1.0bn in value. The FTSE ST Mid Cap Index gained +0.08% while the FTSE ST Small Cap Index

gained +0.17%. The top active stocks were DBS (-0.53%), SingTel (+0.27%), Noble Group (+3.37%), Global Logistic Properties (-1.92%) and CapitaLand (+0.98%).

We peg key near term support at 3,100 levels. Top Picks are DBS (Accumulate, TP: S$17.50), SingTel (Accumulate, TP:

S$4.06) and Keppel Corp (Accumulate, TP: S$12.07). Deep Value Plays are Amara (Buy, TP: S$0.74), and Boustead (Buy, TP: S$2.05).

Close +/- % +/-FSSTI 3203.03 1.76 0.05P/E (x) 13.71P/Bv (x) 1.42

3.25Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

3500

3700

11/19 2/19 5/19 8/19

Source: Bloomberg

Thailand Thai stocks traded to the upside on Mon on positive external factors after China

unveiled bold long-term economic reforms but domestic political worries in Thailand however limited gains to a mere 0.23%.

US equities gave up some earlier gains on overbought concerns after the Dow industrials broker through the 16,000-point barrier while several market participants kept a wary eye on US economic data and QE prospects.

In Thailand, the market continued to give much weight to domestic political factor. The second and third readings of the Bt2trn borrowing bill for infrastructure development scheme in the Senate enter the second day today while investors are eagerly awaiting the Constitutional Court’s ruling on Senate change due out tomorrow. In a worst case scenario, the court’s verdict may possibly lead to the dissolution of six ruling political parties.

Net foreign selling in Thai shares dissipated and foreign investors turned net buyers of Thai bonds for a second straight day. For this reason, the downside would be more limited. In our view, Thai stocks seem likely to be caught in a tug of war with limited upside and downside ahead of the court’s ruling on the senator related case but there is still room for short-term trading opportunities in companies expected to benefit from the Bt2trn infrastructure loan bill.

Resistance for the SET index is expected at 1435-1445 points and support at 1410-1400 points today.

Close +/- % +/-SET INDEX 1423.96 3.30 0.23P/E (x) 12.57P/Bv (x) 2.24

3.01Dividend Yield

STOCK EXCH OF THAI INDEX

900

1000

1100

1200

1300

1400

1500

1600

1700

11/19 2/19 5/19 8/19

Source: Bloomberg

Indonesia The Jakarta Composite Index (JCI) advanced Monday (18/11), as most stock

indexes in Asia traded higher after China announced new outlines for economic restructuring, and with Fitch ratings kept its investment grade for Indonesia. The JCI gained 58.144 points, or 1.34%, to close at 4,393.592. Shares in miscellaneous industry sector led gains that included eight of the 9 major industry groups, followed by basic industry sector and infrastructure sector. The LQ45 index added 14.647 points, or 2.03%, to 736.721. Debt ratings agency Fitch affirmed Indonesia’s debt rating as investment grade, expecting the country’s economy expansion to slow next year as it struggles to narrow the current-account deficit. Fitch maintained Indonesia’s BBB- rating, or the lowest investment grade level. 141 shares advanced and 99 shares declined Monday on the Indonesia Stock Exchange, where 3.02 billion shares worth IDR 3.58 trillion traded on the regular board. Foreign investors’ transactions accumulated to a net purchase of IDR 286.08.

Indonesian stocks will likely trade lower today, with negative leads from Wall Street overnight as well as weak start in Asia this morning. We expect the Jakarta Composite Index (JCI) to trade lower, with support and resistance at 4,342 and 4,429, respectively.

Close +/- % +/-JCI Index 4393.59 58.14 1.34P/E (x) 18.82P/Bv (x) 2.45

2.24Dividend Yield

JAKARTA COMPOSITE INDEX

3400

3900

4400

4900

5400

11/19 2/19 5/19 8/19

Source: Bloomberg

Regional Market Focus

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Sri Lanka The Colombo bourse re-entered into the green terrain and closed the trading date

on a positive note. The ASPI gained 13.51 points or 0.23% to enter the green terrain and settled the day at 5,824.48. The S&P SL20 gained 25.63 points or 0.81% to settle at 3,200.31. A total of 49 companies gained during the day whereas 108 companies posted drops in share prices. As at the daily closure, the total market capitalization as at the day’s closure moved up to LKR 2.42Tn, extending the year to date gain to 11.78%. The market PER and PBV were 15.26x & 2.01x respectively. The turnover for the day amounted to record LKR 936.4Mn, indicating a gain of 299.7% from its previously recorded. Under the sectorial round-up, Bank Finance and Insurance (BFI) sector topped the list providing LKR 715.7Mn and Diversified Holdings (DIV) sector stood next in line providing LKR 108.0Mn to the daily aggregate turnover. A total of 143.6Mn shares changed hands during the day resulting in a gain of 626.4% compared to the previous trading day. Foreign participants appeared to be bullish during the day resulting in a net foreign inflow of LKR 76.5Mn, resulted by foreign buying of LKR 134.6Mn and selling of LKR 58.1Mn. This assisted the year to date net foreign inflow to reach LKR 22.67Bn. Looking at the local FOREX markets, the USD is selling at 132.74/- and is buying at LKR 129.48/-.

Close +/- % +/-CSEALL Index 5824.48 13.51 0.23P/E (x) 12.21P/Bv (x) 1.58

2.78

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

5000

5500

6000

6500

7000

11/19 2/19 5/19 8/19

Source: Bloomberg

Australia Australian shares fell 0.3 percent on Monday, pulled down by blue-chip stocks in

a broad sell-off after a bullish October, though sentiment was buoyed by Wall Street hitting new highs and a surge in takeover target Warrnambool Cheese.

The S&P/ASX 200 index fell 17 points to finish at 5,384.7. The benchmark gained nearly 1 percent on Friday after dovish comments by U.S. Federal Reserve Chair nominee Janet Yellen.

Close +/- % +/-S&P/ASX 200 INDEX 5384.66 -17.01 -0.31P/E (x) 22.52P/Bv (x) 2.04

5.69

STANDARD & POORS/ ASX 200 INDEX

Dividend Yield

3800

4000

4200

4400

4600

4800

5000

5200

5400

5600

11/19 2/19 5/19 8/19

Source: Bloomberg

Hong Kong HSI climbed 627 points or 2.73% to 23,660. CEI surged 604 points or 5.65% to

11,307. Trading volume increased to HKD112.076 billion. HK market rose for a third day with high volume after China vowed to carry out

the broadest expansion of economic freedoms. HSI reached the highest point since 5 Feb 2013.

Baby related stock outperformed as policy makers said they would relax the one-child policy. Yashili Int’l (1230.HK), Biostime (1112.HK) and CH Modern D (1117.HK) gained 9.7%, 6.5% and 5.3% respectively.

Chinese brokerages led CEI up as government flagged policy changes that portend the end of a ban on IPO. Citic Securities (6030.HK) and Haitong Securities (6837.HK) gained 13% and 10.8% respectively.

China insurance sector also benefited from the ease of one-child policy due to expectation of more health and pension insurance. CPIC (2601.HK), Ping An (2318.HK) and China Life (2628.HK) gained 13.2%, 9.4% and 8.7% respectively.

HK telecom operators under-performed on 3G-spectrum auction. HKT-SS (6823.HK) and Hutchtel HK (215.HK) dropped 4.2% and 2.5% respectively.

Technically, HSI broke Sep high of 23,554 finally as we forecasted before and it stayed above 10-MA and 50-MA. The next resistance and support for HSI are 23,945 and 23,500 respectively.

Close +/- % +/-HSI INDEX 23660.06 627.91 2.73P/E (x) 10.70P/Bv (x) 1.47

3.27Dividend Yield

HANG SENG INDEX

17000

18000

19000

20000

21000

22000

23000

24000

25000

11/19 2/19 5/19 8/19

Source: Bloomberg

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Market News

US Investors got less bullish on gold as hedge funds doubled their short holdings just before prices erased a weekly loss and Janet Yellen

pledged to press on with economic stimulus if confirmed as Federal Reserve chairman. The net-long position in gold slumped 37 percent to 55,456 futures and options in the week ended Nov. 12, U.S. Commodity Futures Trading Commission data show, the biggest drop since February. Short bets climbed to 54,143, the highest since mid-August, from 26,490 a week earlier. Net-bullish wagers across 18 U.S.-traded commodities dropped 12 percent to 576,224 contracts as investors became more bearish on wheat and cut their silver holdings by the most in five months. (Source: Bloomberg)

The Senate Banking Committee has scheduled a Nov. 21 vote on the nomination of Janet Yellen to be chairman of the Federal Reserve.

The panel vote will set the stage for a full Senate confirmation vote later this year. If confirmed, Yellen, the Fed’s current vice chairman, will become the first woman to lead the U.S. central bank. Democrats hold a two-vote lead on the 22-member committee. Yellen, 67, would succeed Ben S. Bernanke, whose current term ends in January. Senator Sherrod Brown, an Ohio Democrat, led an effort with 20 Democrats to send President Barack Obama a letter in support of Yellen before she had been nominated. Yellen faces opposition from Republicans who disapprove of the Fed’s recent monetary policy. (Source: Bloomberg)

Singapore Economists now expect the government to upgrade its 2013 GDP growth forecast to as high as 4 per cent, when it announces third-

quarter figures on Thursday. Non-oil domestic exports (NODX) expanded for the first time since January, growing 2.8 per cent year-on-year in October - in stark contrast to market expectations of a contraction of 1.1 per cent. The pleasant surprise is the latest addition to recent positive economic indicators, including hearty showings in the purchasing managers' index and industrial production numbers. (Source: BusinessTimes)

The Public Transport Council (PTC) has started a fare review exercise for buses and trains, with a decision on adjustments set to be

announced some time in the first quarter of next year. In a statement released on Monday, the council said it is giving public transport operators until Dec 19 to submit their applications for fare adjustments. It added that this latest fare review would be for this year as well as last year, which was suspended pending the work of the Fare Review Mechanism Committee (FRMC). (Source: BusinessTimes)

Thailand Deputy PM and Finance Minister Kittirat Na-Ranong was disappointed about third-quarter GDP data, which fell short of expectations,

blaming delays in the government’s mega infrastructure projects including the likes of the Bt350bn water management projects and the Bt2trn infrastructure scheme. GDP was however expected to grow by 4.5% next year. Meanwhile, the Ministry of Commerce kept its 2013 export growth target at 1% but growth was expected to accelerate to 5% next year. (Source: Post Today)

The Bank of Thailand forecast bank loans to grow by 12% this year, a slowdown from a year earlier as shrinking purchasing power led to

a drop in personal and credit card loans. The growth rate was however expected to be better than an estimated GDP growth of 3% this year. NPLs might not be a cause for concern. The central bank further said that tight bank liquidity conditions may also intensify competition for deposits. (Source: Krungthep Turakij)

The National Economic and Social Development Board (NESBD) cut its 2013 economic growth forecast for the country for a third time to

3% from 3.8%-4.3% after a deepening slump in exports. This year export growth is expected to be flat against its previous forecast for a 5% growth. Deputy PM and Finance Minister Kittirat Na-Ranong however said Thailand has come back into balance as it reduces dependence on exports. (Source: Thai Rath)

Hong Kong

China’s planned economic reforms are poised to reshape the competitive landscape, allowing private companies such as Alibaba Group Holdings Inc. to compete with state-owned banks, and easing the one-child policy to bolster demand for products from Nestle SA (NESN) to General Motors Co. (GM). Plans to change the nation’s financial sector include a new registration system for initial public offerings and allowing qualified private investors to set up small-to-medium sized banks. Tencent Holdings Ltd. (700), Asia’s biggest Internet company, is part of a group applying for a banking license in China. President Xi Jinping’s reforms, which may be the most sweeping since Deng Xiaoping’s liberalization in 1978, are aimed at giving more influence to market forces and loosening government controls. The changes outlined in a 60-point document after a Communist Party meeting last week present opportunities -- and risks -- to companies in almost every segment of the world’s second-biggest economy, which is heading for its weakest annual expansion since 1999. (Source: Bloomberg)

Developers from China are committing billions of dollars to projects around the world, from apartment towers in Brooklyn, New York, and a

new business district in the U.K. to a residential redevelopment in Sydney and mixed-use buildings in downtown Los Angeles. Regulatory restrictions at home and concerns that the Chinese property market is overheating are spurring companies to venture outside their country for the first time and look far afield for construction opportunities. (Source: Bloomberg)

In China’s “Shipping Valley,” where the Yangtze River empties into the sea north of Shanghai, the once-bustling home of the nation’s

biggest private shipbuilder is deadly quiet on a recent morning. Rows of dilapidated five-story dormitories in the city of Nantong, previously housing China Rongsheng Heavy Industries Group Holdings Ltd.’s 38,000 employees, were abandoned after the shipbuilder teetering on

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collapse cut almost 80 percent of its workers over the past two years. Most video arcades, restaurants and shops serving them have closed. A $6.6 trillion credit binge during the past five years, encouraged by Beijing policy makers as stimulus to combat a global economic slowdown, now threatens to stoke a debt crisis. At stake are trillions of yuan in bank loans that companies producing everything from ships to steel to solar power are struggling to repay as the world’s second-largest economy heads for the weakest annual expansion since 1999.Rongsheng, which is seeking a government bailout after accumulating 25 billion yuan ($4.1 billion) in unpaid loans as of June, including to Bank of China Ltd., is a casualty of over-investment gone bust. In Nantong, the only remaining market is selling past-its-shelf-life bread, woolly shoe pads and other dusty items at a discount as shopkeeper Qiu Aibing prepares to wind down before winter. There’s no sign of a single customer. (Source: Bloomberg)

Indonesia Fitch Ratings maintained Indonesia’s BBB- rating. Fitch and Moody’s Investors Service are the two major debt rating agencies that

restored Indonesia’s investment grade status in 2011 and 2012 respectively. Fitch projected the country’s real gross domestic product to expand by 5.3% in 2014, slower than an estimated 5.5% pace this year. “It is due to the adjustment of the external finances, fading consumer confidence, and constrained income from commodities,” the agency said in a release on Friday. Indonesia has struggled to balance its current account - the widest record for a country’s goods and services trade- which has been in a deficit for the past eight quarters due to weak commodities export and strong import to state domestic demand. (Source: The Jakarta Globe)

Indonesian banks have responded positively to a call from the central bank to slow the pace of their lending growth next year, a move

aimed at cooling down a red-hot market and preventing a credit bubble in Southeast Asia’s largest economy. Executives from Bank Mandiri, the country’s largest lender by assets, Bank Central Asia, the biggest by market capitalization, and Bank OCBC NISP revealed lower lending growth targets on Thursday night, after Bank Indonesia Governor Agus Martowardojo urged lenders to scale back on issuing new loans in 2014. (Source: The Jakarta Globe)

Sri Lanka Sri Lankan tourism official confirmed that its tourist arrivals have topped 904,000 and is reaching towards a million tourists by the end of

November 2013. Sri Lanka is targeting 1.2 million tourist arrivals in 2013 up from a million in 2012. Accordingly, Sri Lanka had earned a billion US dollars in tourism revenues in 2012 and 1.5 billion US dollars is expected this year. The average stay has moved up to 10.5 nights this year from 10 days last year. The average spend per day was 109 US dollars compared to 65 in 2009. Sri Lanka's arrivals have been boosted by reasonably priced accommodation and internet booking engines which has brought price transparency. (Source: LBO)

Australia Australia’s central bank said there was “mounting evidence” interest-rate cuts were working, even as it retained the option of loosening

policy to support growth in an economy battling an “uncomfortably high” currency. Policy makers are balancing rising home prices against a high currency that’s weighing on industries such as manufacturing. GovernorGlenn Stevens and his board reduced borrowing costs by 2.25 percentage points in the past two years to a record-low 2.5 percent to boost employment-intensive parts of the economy outside of resources, where investment is waning. (Source: Bloomberg)

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80.83 -0.03% 272.92 -0.52%

108.36 -0.18% 2.666 +0.00%

1,275.40 -0.06% 15,976.02 +0.09%

555.55 +1.88% Straits Times Index 3,203.03 +0.05%

23,660.06 +2.73% 15,164.30 -0.01%

Source: Bloomberg

Gold (US$/Oz) DJI

MSCI Asia x-Japan

Hang Seng Index Nikkei 225 Index

Dollar Index ThomReuters/JefferiesCRB

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

1.201.401.601.802.002.202.402.602.803.00

Nov-1

2

Dec-1

2

Jan

-13

Fe

b-1

3

Ma

r-13

Ap

r-13

Ma

y-1

3

Jun

-13

Jul-1

3

Au

g-1

3

Se

p-1

3

Oct-1

3

Nov-1

3

2,600

2,800

3,000

3,200

3,400

3,600

Nov-1

2

Dec-1

2

Jan

-13

Fe

b-1

3

Ma

r-13

Ap

r-13

Ma

y-1

3

Jun

-13

Jul-1

3

Au

g-1

3

Se

p-1

3

Oct-1

3

12,000

13,000

14,000

15,000

16,000

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

Ma

y-1

3

Jun

-13

Jul-1

3

Au

g-1

3

Se

p-1

3

Oct-1

3

16,000

18,000

20,000

22,000

24,000

26,000

Nov-1

2

Dec-1

2

Jan

-13

Fe

b-1

3

Ma

r-13

Ap

r-13

Ma

y-1

3

Jun

-13

Jul-1

3

Au

g-1

3

Se

p-1

3

Oct-1

3

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

Ma

y-1

3

Jun

-13

Jul-1

3

Au

g-1

3

Se

p-1

3

Oct-1

3

1,100

1,400

1,700

2,000

Nov-1

2

Dec-1

2

Jan

-13

Fe

b-1

3

Ma

r-13

Ap

r-13

Ma

y-1

3

Jun

-13

Jul-1

3

Au

g-1

3

Se

p-1

3

Oct-1

3

Nov-1

3

76

78

80

82

84

86

No

v-1

2

De

c-1

2

Ja

n-1

3

Fe

b-1

3

Mar-1

3

Ap

r-13

May-1

3

Ju

n-1

3

Ju

l-13

Au

g-1

3

Se

p-1

3

Oct-1

3

260

280

300

320

340

No

v-1

2

De

c-1

2

Ja

n-1

3

Fe

b-1

3

Mar-1

3

Ap

r-13

May-1

3

Ju

n-1

3

Ju

l-13

Au

g-1

3

Se

p-1

3

Oct-1

3

80

90

100

110

120

130

No

v-1

2

De

c-1

2

Ja

n-1

3

Feb

-13

Ma

r-13

Apr-1

3

Ma

y-1

3

Ju

n-1

3

Ju

l-13

Aug-1

3

Sep-1

3

Oct-1

3

420

440

460

480

500

520

540

560

580

Nov-1

2

Dec-1

2

Jan

-13

Fe

b-1

3

Mar-1

3

Ap

r-13

Ma

y-1

3

Jun

-13

Jul-1

3

Au

g-1

3

Se

p-1

3

Oct-1

3

Regional Market Focus

19 November 2013

9 of 14

Valuations of Major Regional Markets

15.1 1.42

14.7 2.24

11.3 1.47

15.3 2.45

15.4 2.03

Source: Bloomberg

Hang Seng Index, P/B (X)

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

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,

10

12

14

16

18

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

1.0

1.2

1.4

1.6

1.8

2.0

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

1.0

1.5

2.0

2.5

3.0D

ec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

8

10

12

14

16

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

1.01.21.41.61.82.02.2

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

8

10

12

14

16

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

2.22.42.62.83.03.23.43.6

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

10

12

14

16

18

20

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

1.4

1.6

1.8

2.0

2.2

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

8

10

12

14

16

18

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

Ju

n-1

3

Se

p-1

3

Regional Market Focus

19 November 2013

10 of 14

Source: Bloomberg

World Index

JCI 1.34% 4,393.59

HSI 2.73% 23,660.06

KLCI 0.14% 1,792.39

NIKKEI -0.01% 15,164.30

KOSPI 0.54% 2,021.70

SET 0.23% 1,423.96

SHCOMP 2.87% 2,197.22

SENSEX 2.21% 20,850.74

ASX -0.31% 5,384.66

FTSE 100 0.45% 6,723.46

DOW 0.09% 15,976.02

S&P 500 -0.37% 1,791.53

NASDAQ -0.93% 3,949.07 COLOMBO 0.23% 5,824.48

STI 0.05% 3,203.03

Regional Market Focus

19 November 2013

11 of 14

Date Statistic For Survey Prior Date Statistic For Survey Prior

11/19/2013 Employment Cost Index 3Q 0.50% 0.50% 11/20/2013 Automobile COE Open Bid Cat A 20-Nov -- 7260900.00%

11/20/2013 MBA Mortgage Applications 15-Nov -- -1.80% 11/20/2013 Automobile COE Open Bid Cat B 20-Nov -- 8457800.00%

11/20/2013 Retail Sales Advance MoM Oct 0.00% -0.10% 11/20/2013 Automobile COE Open Bid Cat E 20-Nov -- 8900100.00%

11/20/2013 Retail Sales Ex Auto MoM Oct 0.10% 0.40% 11/21/2013 GDP SAAR QoQ 3Q F -0.30% -1.00%

11/20/2013 Retail Sales Ex Auto and Gas Oct 0.20% 0.40% 11/21/2013 GDP YoY 3Q F 5.30% 5.10%

11/20/2013 Retail Sales Control Group Oct 0.20% 0.50% 11/25/2013 CPI NSA MoM Oct -- 0.10%

11/20/2013 CPI MoM Oct 0% 0.20% 11/25/2013 CPI YoY Oct -- 1.60%

11/20/2013 CPI Ex Food and Energy MoM Oct 0.10% 0.10% 11/26/2013 Industrial Production SA MoM Oct -- 3.70%

11/20/2013 CPI YoY Oct 1.00% 1.20% 11/26/2013 Industrial Production YoY Oct -- 9.30%

11/20/2013 CPI Ex Food and Energy YoY Oct 1.70% 1.70% 11/29/2013 Credit Card Bad Debts Oct -- 19.8M

11/20/2013 CPI Core Index SA Oct 23492.90% 23458.90% 11/29/2013 Credit Card Billings Oct -- 3393.6M

11/20/2013 CPI Index NSA Oct 23360.00% 23414.90% 11/29/2013 Money Supply M1 YoY Oct -- 15.30%

11/20/2013 Existing Home Sales Oct 5.15M 5.29M 11/29/2013 Money Supply M2 YoY Oct -- 7.50%

11/20/2013 Existing Home Sales MoM Oct -2.70% -1.90% 11/29/2013 Bank Loans and Advances YoY Oct -- 15.70%

11/20/2013 Business Inventories Sep 0.30% 0.30% 12/2/2013 Foreign Reserves Nov -- $271.78B

Date Statistic For Survey Prior Date Statistic For Survey Prior

18-20 NOV Car Sales Oct -- -- 11/19/2013 Composite Interest Rate Oct -- 0.32%

11/22/2013 Foreign Reserves 15-Nov -- $170.5B 11/21/2013 CPI Composite YoY Oct 4.50% 4.60%

11/22/2013 Forw ard Contracts 15-Nov -- $22.2B 11/26/2013 Exports YoY Oct -- 1.50%

11/25/2013 Customs Exports YoY Oct -- -7.10% 11/26/2013 Imports YoY Oct -- 0.40%

11/25/2013 Customs Imports YoY Oct -- -5.20% 11/26/2013 Trade Balance Oct -- -42.0B

11/25/2013 Customs Trade Balance Oct -- $473M 11/28/2013 Retail Sales Value YoY Oct -- 5.10%

11/27/2013 BoT Benchmark Interest Rate 27-Nov -- 2.50% 11/28/2013 Retail Sales Volume YoY Oct -- 4.90%

11/28/2013 Mfg Production Index ISIC NSA Oct -- -290.00% 11/29/2013 Budget Balance HKD Oct -- -16.1B

11/28/2013 Mfg Production Index ISIC SA Oct -- 17118.00% 11/29/2013 Money Supply M1 HKD YoY Oct -- 14.50%

11/28/2013 Capacity Utilization ISIC Oct -- 6400.00% 11/29/2013 Money Supply M2 HKD YoY Oct -- 9.60%

11/29/2013 Foreign Reserves 22-Nov -- -- 11/29/2013 Money Supply M3 HKD YoY Oct -- 9.60%

11/29/2013 Forw ard Contracts 22-Nov -- -- 12/4/2013 HSBC/Markit PMI Nov -- 5010.00%

11/29/2013 Exports YoY Oct -- -6.30% 12/6/2013 Foreign Reserves Nov -- $309.6B

11/29/2013 Exports Oct -- $19169M 12/11/2013 Manpow er Survey 1Q -- 15.00%

11/29/2013 Imports YoY Oct -- -6.10% 12/12/2013 Industrial Production YoY 3Q -- 0.30%

US Singapore

Economic Announcement

Thailand Hong Kong

Source: Bloomberg

Source: BloombergSource: Bloomberg

Source: Bloomberg

Regional Market Focus

19 November 2013

12 of 14

Date Statistic For Survey Prior Date Statistic For Survey Prior

11-20 NOV Local Auto Sales Oct -- 115921 11/29/2013 CPI Moving Average YoY Nov -- --

11-20 NOV Motorcycle Sales Oct -- 67590200.00% 11/29/2013 CPI YoY Nov -- --

12/2/2013 HSBC/Markit Manufacturing PMI Nov -- 5090.00% 12/5/2013 Exports YoY Oct -- --

12/2/2013 CPI YoY Nov -- 8.32% 12/5/2013 Imports YoY Oct -- --

12/2/2013 CPI NSA MoM Nov -- 0.09% 12/10/2013 CBSL Repurchase Rate 10-Dec -- --

12/2/2013 CPI Core YoY Nov -- 4.73% 12/10/2013 CBSL Reverse Repo Rate 10-Dec -- --

12/2/2013 Exports YoY Oct -- -6.90% 12/13/2013 GDP YoY 3Q -- 6.80%

12/2/2013 Imports YoY Oct -- 0.80% 12/31/2013 CPI Moving Average YoY Dec -- --

12/2/2013 Trade Balance Oct -- -$657M 12/31/2013 CPI YoY Dec -- --

12/2/2013 Danareksa Consumer Confidence Nov -- 9120.00%

12/2/2013 Consumer Confidence Index Nov -- 10950.00%

12/2/2013 Money Supply M1 YoY Oct -- 8.70%

12/2/2013 Money Supply M2 YoY Oct -- 14.50%

12/3/2013 Foreign Reserves Nov -- $97.0B

12/3/2013 Net Foreign Assets IDR Nov -- 1051.2T

Date Statistic For Survey Prior

11/19/2013 Conf. Board Leading Index MoM Sep -- -0.20%

11/19/2013

RBA Policy Meeting - November

Minutes

11/20/2013 Westpac Leading Index MoM Sep -- -0.10%

11/20/2013 DEWR Skilled Vacancies MoM Oct -- 0.50%

11/21/2013 RBA FX Transactions Market Oct -- 663M

11/21/2013 RBA FX Transactions Government Oct -- -698M

11/21/2013 RBA FX Transactions Other Oct -- 12M

11/27/2013 CBA/HIA House Affordability 3Q -- 7280.00%

11/27/2013 Construction Work Done 3Q -- -0.30%

11/28/2013 Private Capital Expenditure 3Q -- 4.00%

11/29/2013 Private Sector Credit MoM Oct -- 0.30%

11/29/2013 Private Sector Credit YoY Oct -- 3.30%

12/2/2013 AiG Perf of Mfg Index Nov -- 5320.00%

12/2/2013 RPData/Rismark House Px MoM Nov -- 1.30%

12/2/2013 TD Securities Inflation MoM Nov -- 0.10%

Source: Bloomberg

Indonesia

Australia

Sri Lanka

Source: BloombergSource: Bloomberg

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

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

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

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