MICA (P) 081/12/2011 Ref No: RM2012_0011 1 of 15

Phillip Securities Research Pte Ltd

Regional Market Focus

17 January 2012

Singapore STI: -1.3% to 2756.5 MSCI Asia-Pac ex-Japan: -1.05% Euro Stoxx 50: +1.01% S&P500: closed for holiday Following the downgrades, Asian stocks sold yesterday... but as for Europe...

nothing! France refinanced at an even better rate. And yields ex-Germany did not rise, they fell! European stocks rallied. If markets want to go higher, they will go higher. Chances are Asia will rally today as well. Possible drag today could be China data, which is expected to slow further.

From market reactions, chances are to the upside over the short term, but its a low conviction call for us, as Greek haircut talks have broken down, US data has been below market expectations, and the prospect of China loosening is postponed. On the other hand, market supportive reasons like the rate of mfg contractions in Europe and Asia having eased somewhat, and unlimited liquidity by the ECB resulting in backdoor QE are still there. Electronics sector in Singapore could also be bottoming out if global sentiment improves, but headwinds are significant (see next para).

Over the larger trend for the STI and S&P500, we are still bearish: (a) we expect US growth to surprise on the downside due to incomes not rising fast enough to offset a fiscally tighter 2012, (b) EZ fiscal and debt-GDP targets will be missed, refinancing will be tough, exacerbated by on-going recession, (c) China will avoid hard landing but its slowdown will be a drag on Asian exports. Positive challenges to our view would be (1) the Eurozone process for fiscal integration actually addresses its suboptimal growth path, and (2) lead econ indicators globally corroborate resilience. We have some improvement in the latter already.

Close +/- % +/-FSSTI 2756.49 -35.05 -1.26P/E (x) 6.75P/Bv (x) 1.32

3.98Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

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

Source: Bloomberg

Hong Kong Local stocks slipped. The HSI and HSCEI lost 192.22 points and 147.44 points

to 19012.20 and 10489.59 respectively. Market volume was 38.804 billion. The trading turnover still low in this week, but the supporting from 19000

yesterday is stronger than our expectation. However, the downgrading action continues, it is not a high time to buy equities yet. Especially, the Greek Sovereign debt negotiation is facing risk of breaking up. Investors should pay attention to the sovereign debt auction results of Spain and Greek today. Apart from that, investors should also pay attention to the latest economics data of China today.

Technically, the benchmark index formed a peak on 19000 recently, even the 10 SMA breakthrough 100 SMA, a good signal for future trend, we do believe the HSI will maintain a downward trend in short term, investors are suggested to reduce the equities at 19000 level.

We peg resistance for the HSI at 19000 and support at 18700

Close +/- % +/-HSI INDEX 19012.20 -192.22 -1.00P/E (x) 8.61P/Bv (x) 1.36

3.60Dividend Yield

HANG SENG INDEX

16000

18000

20000

22000

24000

26000

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

Source: Bloomberg

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Thailand Thai stocks traded choppy with a downside bias on Mon pressured by S&P’s

credit rating downgrades of several euro-zone countries, uncertainty over the Financial Institutions Development Fund (FIDF)’s debt transfer plan and travel warnings issued by several countries over possible terrorist attacks in Thailand. Due to these negative factors, trading volume fell sharply to a mere Bt14b.

Sentiment in Asia is quite bullish in today’s early trade after yesterday’s weakness. Thai stocks are also likely to follow regional markets higher today but the upside will remain limited to 1045 as investors will closely monitor internal developments especially on how to tackle the Financial Institutions Development Fund (FIDF)’s debt in order to assess the impact on the banking sector. The Bank of Thailand is likely to conclude the FIDF debt issue within this week and the new rate to be levied on banks’ deposit bases to help pay off the FIDF’s debt is expected to be in force this Jul. In addition, cabinet reshuffle will also be in the spotlight after news reported that the new cabinet lineup with changes in more than 10 cabinet posts would be submitted for royal endorsement. On the external front, the focus will remain on Europe’s debt crisis and earnings results from several US big banks due out this week.

In the near term, the strategy is to sell into strength and buy on dips in a trading range of 1032 to 1045 until the SET index can decisively break above 1045 before raising equity exposure.

Today we peg resistance for the SET index at 1042-1045 and support at 1032.

Close +/- % +/-SET INDEX 1037.01 -7.80 -0.75P/E (x) 12.70P/Bv (x) 1.95

4.06Dividend Yield

STOCK EXCH OF THAI INDEX

800

900

1000

1100

1200

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

Source: Bloomberg

Indonesia European crisis ones again made an effect in Asian exchange, Yesterday The

Jakarta Composite Index (JCI) were down by 25.633 points or -0.65% , to close at 3,909.693. Seven sectors were red yesterday, led by Basic industry sector which wane 1.29%, followed by Basic Industries sector which sagged by 1.10% and Finance sector that declined -1.08%. The breadth of the market was negative with 139 shares declining as compared to 83 that go up and 85 shares unchanged. The total turnover on regular market was IDR 2.25 trillion (USD 246.710 million).

We expect the JCI to decline today, and set 3,850 and 3,950 as its’ support and resistance level.

Close +/- % +/-JCI Index 3909.69 -25.63 -0.65P/E (x) 17.31P/Bv (x) 2.90

2.03Dividend Yield

JAKARTA COMPOSITE INDEX

30003200340036003800400042004400

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

Source: Bloomberg

Sri Lanka Markets were closed on 16 Jan 2012 for public holiday.

Close +/- % +/-CSEALL Index 5929.34 -13.13 -0.22P/E (x) 12.89P/Bv (x) 2.15

1.98Dividend Yield

SRI LANKA COLOMBO ALL SH

5500

6000

6500

7000

7500

8000

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

Source: Bloomberg

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Singapore M1 Ltd – Company Results Recommendation: Reduce Previous close: S$2.56 Target Price: S$2.36 Profits missed, despite 4.5% growth Higher handset sales contributed to strong top line Consensus expectations could be too high Downgrade to Reduce with revised TP of S$2.36 Hong Kong Automobile Sector: Sales Slowed In 2011 As Expected, With Widening Gaps Between Segments （I）- Sector Update Rating: Market Perform Though positive, sales growth ratio hit a13-year low Due to the high base and austerity economic policies, plus the expiration of national stimulus policies for small emission vehicles and

limitation of car licensing implemented in some cities, in 2011 China's auto industry demand fell sharply, with the overall sales growth ratio hitting a 13-year low.

With 18,505,100 vehicles sold in 2011, China's auto market ended with a 2.45 percent yoy sales increase, compared with the 32.37% yoy growth in 2010, according to CAAC.

Specifically, the passenger vehicle (hereinafter referred to as PV) represented a y/y growth of 5.19% for the full year (dropped by 28 ppts compared to 2010’s 33.17% and 54 ppts compared to 2009’s 59.1%) to 14.4727million units.

The commercial vehicle (hereinafter referred to as CV) declined by a yoy growth of 6.31% to 4.0327 million units. The proportion of PV and CV are 78:22. Sort of consumer goods, the PV performed better than the CV which used as most capital goods

as we expected. Thailand Kiatnakin Bank – Company Results Recommendation: BUY Previous close: Bt30 Fair value: Bt38 KK posted a 4Q11 net profit of Bt682.78m, down 21.9% QoQ due chiefly to the flooding impact but tax savings led its 4Q11 results to

come in 20% better than our forecast. For the full year 2011, net profit was flat YoY as strong loan growth of as much as 26.5% and higher net fee income were offset by

mounting funding costs, the flooding impact, branch expansion expenses and flood-related expenses as well as higher provisions. This year hire purchase business is expected to be a key earnings driver for KK while the prospects for other businesses such as wealth

management and securities brokerage look unexciting. We upgrade KK shares to ‘BUY’ as our 2012 price target of Bt38/share now offers more than 15% from current trading levels.

Hemaraj Land and Development – Company Update Recommendation: HOLD Previous close: Bt2.44 Fair value: Bt2.50 Industrial land developer HEMRAJ reported that it sold 1,670 rai of land last year in line with our expectations and it has also initially set

its 2012 land sales target of 1,500 rai. Stellar profit growth is expected for HEMRAJ this year largely driven by industrial estate and power businesses. We downgrade HEMRAJ shares to ‘HOLD’ as current valuation offers limited upside to our price target of Bt2.50/share.

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Market News

US Hopefully, retailers liked 2011, because 2012 is looking like it will offer more of the same. A consensus is emerging that the new year will

again bring a slow but steady increase in business, after moderate growth last year that was capped by a holiday season that saw shoppers spend if stores gave out bargains. "Consumers are doing everything they can in light of the current environment to be consumers," Paul Hurley, founder and chief executive of Ideeli, a flash sales website. "We're not seeing a deflationary spiral where people are putting off purchases." The National Retail Federation at the start of its annual convention in New York said U.S. retail sales should rise 3.4 percent this year, down from an increase of 4.7 percent in 2011, which came after weak sales in 2010. (Source: Reuters)

Speculators increased wagers on rising commodities to the highest level since November just as prices headed for the biggest three-day

slide in almost a month. Money managers expanded combined net-long positions across 18 US futures and options by 7.2 per cent to 719,991 contracts in the week ended Jan 10, Commodity Futures Trading Commission data show. The Standard & Poor's GSCI Spot Index of 24 raw materials fell 2.5 per cent in the following three days. While the index rose 14 per cent from a 10-month low in October, prices dropped last week after the US government predicted that supplies of corn and soya beans that were bigger than anticipated by analysts. (Source: Bloomberg)

Singapore The introduction of the additional buyer's stamp duty (ABSD) last month sent developers' private home sales in December to their lowest

level in two years, latest official statistics showed, even though the figure for the full year was still a record. The number of private homes, excluding executive condos (ECs), sold by developers plunged to 632 units in December, down nearly 63 per cent month-on-month and 52.6 per cent year-on-year. Including ECs, a public-private housing hybrid, developers moved 670 units last month, reflecting declines of 63.9 per cent month-on-month and 60.6 per cent year-on-year. (Source: BT Online)

Singapore is pushing ahead with plans for an electricity futures market - involving the trading of derivatives and other financial products -

to boost the competitiveness of the power market here. The Energy Market Authority has called a tender for a consultant to study the implementation of such a market to complement the existing electricity spot market. It also wants the consultant to identify possible models for such a development. A futures market will support the trading of forward electricity products, where a price is agreed today for the delivery and payment of products occurring at a specified future date. (Source: BT Online)

Greater China Region Prices for new residential apartments in Beijing are estimated to have dropped by 11.3 per cent year on year in 2011, as the

government's policies to cool the sizzling property market took hold. The average price of new apartments in the Chinese capital dropped to 13,173 yuan (S$2,659) per square metre in 2011, when about 78,000 units were sold, the Beijing Real Estate Association reported. The decline means that Beijing fulfilled its 2011 goal of ensuring that housing prices remain steady or fall, said Chen Zhi, secretary-general of the association. (Source: BT Online)

Yuan loans and dim sum bond sales in Hong Kong will expand rapidly this year as appreciation of the currency is expected to slow and

China relaxes investment rules, the city's financial services secretary says. 'Yuan loan growth will be fast,' KC Chan said yesterday in an interview at the annual Asian Financial Forum here. The market for so-called dim sum bonds will also expand 'in all dimensions', with gains in issuers and amount, he said. Chinese companies are increasingly seeking to borrow in Hong Kong as unsettled equity markets deter stock sales. The Yuan will strengthen this year at the slowest pace since 2009 as shrinking economic growth curbs demand, according to the most accurate forecasters in analysis by Bloomberg Rankings. (Source: BT Online)

Thailand Foreign investors remained net sellers of Thai equities worth Bt581.6m on Mon. (Source: Bisnews) Several sources at the Puea Thai Party confirmed that PM Yingluck Shinawatra yesterday assigned the secretary-general of the cabinet

to submit the new cabinet lineup with changes of more than 10 cabinet posts for royal endorsement. (Source: Post Today) The Bank of Thailand denied to comment on the rumor it will raise the levy on commercial banks’ deposit base to 0.55% in fulfillment of a

mandate for paying off the Financial Institutions Development Fund (FIDF)’s debt but it said the issue is likely to be concluded this week. The new levy was also expected to take effect this Jul. Total deposits in the Thai banking system are now Bt7.7 trillion with another Bt2 trillion in B/Es. (Source: Post Today)

The Central Administrative Court turned down the Foundation for Consumers’ request for an injunction against the government's

decision to raise the prices of compressed natural gas (CNG) and liquefied petroleum gas (LPG), citing the evidence provided by the complainant was insufficient for the court to issue an injunction against the gas price increases. (Source: Bangkok Post)

US financial markets and NYMEX were closed yesterday for the Martin Luther King Jr. Day holiday. (Source: Bisnews)

Indonesia The Central Statistics Agency (BPS) estimates that Indonesia will start recording a higher trade surplus in the second semester. Deputy

of Distribution and Service Statistics of BPS, explained that the global economy will affect national exports from the fourth quarter of 2011 to the first semester of 2012. BPS explained that developments regarding the economy of the US and Europe will be the main variables influencing the national surplus in 2012, which Deputy of Distribution and Service estimates will be lower than last year's. He also sees that the national trade surplus in this first semester will be the same as last year’s USD 15.05 billion. Economic developments

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in China, India and Japan will also affect Indonesia’s economy. Deputy for Trade and Industry of the Coordinating Ministry for the Economy, estimates that the national trade surplus will increase five percent year-on-year (YOY) as exports will grow eight percent and imports, three percent. Bank Indonesia estimates that the national trade surplus will decline to USD 34.425 billion this year, from the USD 35.532 billion recorded in 2011. BI based its estimate on the continuing global economic slowdown. (Source: Indonesia Finance Today)

The global economic uncertainty caused foreign ownership of government securities to fluctuate, even though Indonesia has obtained

investment grade from Fitch Ratings. Director of Government Securities at the Directorate General of Debt Management in the Finance Ministry said that foreign ownership of government bonds will dynamically rise and decline. External factors such as conditions in Euro zone, the development of the economic recovery in the United States, the dynamic global political conditions and safety issues in other parts of the world affects sentiments in the government securities market. Another factor that caused foreign ownership of government securities to be turbulent is the profit taking acts of several investors. According to data from the Directorate General of Debt Management at the Finance Ministry, foreign ownership was at IDR 222.59 trillion (USD 24.48 billion) in January 6, 2012, or 30.79 percent of the total traded government securities of IDR 722.86 trillion. In January 9, foreign ownership declined to IDR 221.17 trillion, or 30.60 percent of the total traded government securities of IDR 722.86 trillion. When Indonesia’s debt rating was raised to investment grade (Fitch Rating) in December 15, 2011, foreign ownership was at IDR 223.85 trillion. This was 30.93 percent of the total traded government securities of IDR 723.76 trillion. (Source: Indonesia Finance Today)

Sri Lanka Markets were closed on 16 Jan 2012 for public holiday.

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Dollar Index 81.49 +0.01% Gold 1,643.80 +0.07%

Crude oil 98.70 -0.40% US Treasury 10yr Yield 1.865 +0.00%

DJI 12,422.06 -0.39% S&P 500 INDEX 1,289.09 -0.49%

SHCOMP 2,206.19 -1.71%

Source: Bloomberg

10000

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13000

Jan-11

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Mar-11

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70

75

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85

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Jan-11

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Regional Market Focus 17 January 2012

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Source: Bloomberg

Major World Indices

JCI -0.65% 3,909.69

HSI -1.00% 19,012.20

KLCI -0.92% 1,509.06

KOSPI -0.87% 1,859.27

NIKKEI -1.43% 8,378.36

SET -0.75% 1,037.01

SHCOMP -1.71% 2,206.19

SENSEX 0.22% 16,189.36

ASX 0.82% 4,243.60

FTSE 100 0.37% 5,657.44

DOW -0.39% 12,422.06 S&P 500 -0.49% 1,289.09 NASDAQ -0.51% 2,710.67

COLOMBO -0.22% 5,929.34

STI -1.26% 2,756.49

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Top Value & VolumeSingaporeTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)DBS GROUP HLDGS 12.55 -2.86 -0.370 69,436 NOBLE GROUP LTD 1.11 -1.77 -0.020 44,273GENTING SINGAPOR 1.52 -1.62 -0.025 60,586 GENTING SINGAPORE PLC 1.52 -1.62 -0.025 39,832SINGAP TELECOMM 3.12 -0.95 -0.030 54,529 GOLDEN AGRI-RESOURCES LTD 0.73 -2.03 -0.015 26,775UNITED OVERSEAS 16.18 -0.98 -0.160 40,894 SINGAPORE TELECOM LTD 3.12 -0.95 -0.030 18,012OCBC BANK 8.06 -1.23 -0.100 38,842 GMG GLOBAL LTD 0.12 -0.83 -0.001 14,888NOBLE GROUP LTD 1.11 -1.77 -0.020 35,171 YANGZIJIANG SHIPBUILDING 0.98 -1.01 -0.010 12,174KEPPEL CORP LTD 10.19 -0.78 -0.080 30,123 OLAM INTERNATIONAL LTD 2.27 +1.34 +0.030 11,012SEMBCORP MARINE 4.47 -0.67 -0.030 24,688 GENTING HONG KONG LTD 0.31 -1.59 -0.005 10,040OLAM INTERNATION 2.27 +1.34 +0.030 24,462 NEPTUNE ORIENT LINES LTD 1.24 -2.76 -0.035 8,905GOLDEN AGRI-RESO 0.73 -2.03 -0.015 19,332 FRAGRANCE GROUP LTD 0.33 -1.49 -0.005 7,509

Hong KongTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)IND & COMM BK-H 5.15 +0.00 +0.00 1,344,812 BANK OF CHINA-H 3.16 -0.32 -0.01 412,987BANK OF CHINA-H 3.16 -0.32 -0.01 1,298,284 IND & COMM BK-H 5.15 +0.00 +0.00 262,469CHINA CONST BA-H 5.73 -0.17 -0.01 1,239,365 CHINA CONST BA-H 5.73 -0.17 -0.01 216,920CHINA UNICOM HON 14.44 -4.75 -0.72 786,107 AGRICULTURAL-H 3.60 -0.83 -0.03 121,035CHINA MOBILE 75.05 -1.44 -1.10 629,927 CHINA TELECOM-H 4.04 -4.72 -0.20 113,814CHINA PETROLEU-H 8.68 -2.47 -0.22 562,994 EVERGRANDE REAL 3.28 -4.65 -0.16 67,388CNOOC LTD 14.84 -1.59 -0.24 509,227 CHINA PETROLEU-H 8.68 -2.47 -0.22 64,666HSBC HLDGS PLC 59.65 -0.83 -0.50 507,086 GCL-POLY ENERGY 2.35 -2.08 -0.05 62,075CHINA TELECOM-H 4.04 -4.72 -0.20 463,156 CHINA UNICOM HON 14.44 -4.75 -0.72 53,515AGRICULTURAL-H 3.60 -0.83 -0.03 434,217 CHINA SOUTHERN-H 3.95 -8.56 -0.37 47,983

ThailandTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)PTT EXPL & PROD 170.50 -2.29 -4.00 1,221,888 JASMINE INTL PCL 2.02 -2.88 -0.06 208,265BANPU PUB CO LTD 562.00 -1.75 -10.00 706,662 BTS GROUP HOLDIN 0.71 +0.00 +0.00 197,192CHAROEN POK FOOD 34.50 -0.72 -0.25 474,208 SANSIRI PUB CO 1.64 +3.14 +0.05 166,248KASIKORNBANK PCL 116.50 +0.00 +0.00 484,443 G STEEL PCL 0.34 -2.86 -0.01 68,769SIAM COMM BK PCL 112.00 -0.88 -1.00 454,912 TMB BANK PCL 1.56 -1.27 -0.02 65,195PTT GLOBAL CHEM 60.75 -0.41 -0.25 436,530 NATURAL PARK PCL 0.02 +0.00 +0.00 62,642PTT PCL 321.00 -0.31 -1.00 425,389 RAIMON LAND PCL 1.27 +0.00 +0.00 52,454JASMINE INTL PCL 2.02 -2.88 -0.06 421,267 IRPC PCL 4.22 -1.40 -0.06 47,057THAI OIL PCL 59.25 -2.07 -1.25 384,369 BANGKOK LAND PCL 0.70 -2.78 -0.02 44,176SIAM CEMENT PCL 318.00 -0.93 -3.00 357,116 RASA PROPERTY 2.28 +5.56 +0.12 43,012

IndonesiaTop 10 Value Last % Chg Chg Value ('mn) Top 10 Volume Last % Chg Chg Volume ('k)BANK RAKYAT INDO 6,800 -0.73 -50 226,966 ENERGI MEGA PERS 205 2.50 5 464,553BANK MANDIRI 6,700 -2.19 -150 116,838 PANIN FINANCIAL 143 6.72 9 325,024ASTRA INTERNATIO 76,200 -0.72 -550 114,537 BAKRIE & BROTHER 52 0.00 0 193,183AKR CORPORINDO 3,625 8.21 275 107,405 BAKRIELAND DEV 136 -1.45 -2 150,869ENERGI MEGA PERS 205 2.50 5 95,112 GARUDA INDONESIA 590 1.72 10 80,654BANK NEGARA INDO 3,700 -0.67 -25 85,364 NUSANTARA INFRAS 255 18.60 40 71,201TELEKOMUNIKASI 7,000 0.72 50 77,915 KAWASAN INDUS JA 190 -2.06 -4 70,315ADARO ENERGY TBK 1,780 -1.66 -30 57,444 TRADA MARITIME 950 -1.04 -10 52,863TRADA MARITIME 950 -1.04 -10 49,911 SURYA SEMESTA IN 930 3.33 30 39,768GARUDA INDONESIA 590 1.72 10 47,032 ALAM SUTERA REAL 475 -1.04 -5 36,191

Sri LankaTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)ENVIRONMENTAL RE 33.70 -2.03 -0.70 257,509 ASIA ASSET FINAN 5.80 38.10 1.60 40,938ASIA ASSET FINAN 5.80 38.10 1.60 226,637 ENVIRONMENTAL RE 33.70 -2.03 -0.70 7,322COMMERCIAL BK 100.10 -0.20 -0.20 131,611 BLUE DIAMONDS JE 8.40 3.70 0.30 3,807MARAWILA RESORT 10.40 1.96 0.20 32,851 MARAWILA RESORT 10.40 1.96 0.20 3,031BLUE DIAMONDS JE 8.40 3.70 0.30 32,088 SMB LEASING - NV 0.70 0.00 0.00 1,961TOKYO CEMENT NV 28.30 -0.35 -0.10 28,708 SMB LEASING PLC 1.80 0.00 0.00 1,595ASCOT HOLDINGS 151.30 -0.79 -1.20 25,490 FREE LANKA CAPIT 3.00 0.00 0.00 1,547CHEVRON LUBRICAN 172.00 1.18 2.00 19,240 TESS AGRO LTD 4.30 -4.44 -0.20 1,524JOHN KEELLS HLDG 164.60 0.43 0.70 17,324 COMMERCIAL BK 100.10 -0.20 -0.20 1,316COLOMBO LAND & D 54.10 -2.17 -1.20 16,094 AMANA TAKAFUL 2.20 -4.35 -0.10 1,145Source: Bloomberg

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Commodities % Chg Chg Last Price of S$1 Price of US$1GOLD SPOT (US$/OZ) +0.07 +1.13 1,643.80 0.7504 1.0327SILVER SPOT (US$/OZ) -0.03 -0.01 29.99 0.7881 1.0170WTI Cushing Crude Oil Spot Price (US$/bbl) -0.40 -0.40 98.70 0.6115 1.2673

0.5056 1.53250.7750 1.0000

Commodities % Chg Chg Last 4.8940 6.3130Malaysian Rubber Board Standard (MYR/kg) -0.48 -5.00 1,030.25 6.0201 7.7680PALM OIL (MYR/Metric Tonne) -1.49 -48.00 3,169.50 59.5100 76.7700

892.6013 1151.7500Index % Chg Chg Last 2.4331 3.1395 DOLLAR INDEX SPOT +0.01 +0.01 81.49 24.7074 31.8800Source: Bloomberg

JAPANESE YENKOREAN WONMALAYSIAN RINGGITTHAI BAHT

US DOLLARCHINA RENMINBIHONG KONG DOLLAR

CANADIAN DOLLAREUROBRITISH POUND

CurrenciesAUSTRALIAN DOLLAR

Commodities & Currencies

Maturity Today Yesterday Last Week Last Month3 Months 0.00 0.01 0.00 0.006 Months 0.04 0.04 0.03 0.032 Years 0.22 0.23 0.25 0.233 Years 0.33 0.34 0.37 0.365 Years 0.79 0.83 0.85 0.8510 Years 1.86 1.92 1.96 1.9030 Years 2.91 2.97 3.01 2.90

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

US Treasury Yields

1.861.64

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

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Date Statistic For Survey Prior Date Statistic For Survey Prior

1/17/12Revisions: Empire State Manufacturing Activity Index

1/17/12 Electronic Exports (YoY) DEC 0.4% 0.1%

1/17/12 Empire Manufacturing JAN 10.00 9.53 1/17/12 Non-oil Domestic Exports (YoY)

DEC 1.1% 1.6%

1/18/12 MBA Mortgage Applications 13-Jan - - 4.5% 1/17/12 Non-oil Domestic Exp SA (MoM)

DEC - - 5.9%

1/18/12 Producer Price Index (MoM) DEC 0.1% 0.3% 1/18/12 Automobile COE Open Bid Cat A

18-Jan - - 46889

1/18/12 PPI Ex Food & Energy (MoM)

DEC 0.1% 0.1% 1/18/12 Automobile COE Open Bid Cat B

18-Jan - - 65801

1/18/12 PPI Ex Food & Energy (YoY)

DEC 2.8% 2.9% 1/18/12 Automobile COE Open Bid Cat E

18-Jan - - 65700

1/18/12 Producer Price Index (YoY) DEC 5.1% 5.7% 1/25/12 CPI (MOM) - NSA DEC - - 0.6%

1/18/12 Total Net TIC Flow s NOV - - -$48.8B 1/25/12 CPI (YoY) DEC - - 5.7%

1/18/12 Net Long-term TIC Flow s NOV - - $4.8B 1/26/12 Industrial Production MoM SA

DEC - - -25.2%

1/18/12 Industrial Production DEC 0.5% -0.2% 1/26/12 Industrial Production YoY DEC - - -9.6%1/18/12 Capacity Utilization DEC 78.1% 77.8% 1/31/12 Credit Card Bad Debts DEC - - 13.2M

1/18/12 NAHB Housing Market Index

JAN 22 21 1/31/12 M1 Money Supply (YoY) DEC - - 16.8%

1/19/12 Consumer Price Index (MoM)

DEC 0.1% 0.0% 1/31/12 M2 Money Supply (YoY) DEC - - 10.10%

1/19/12 CPI Ex Food & Energy (MoM)

DEC 0.1% 0.2% 1/31/12 Unemployment Rate (sa) 4Q P - - 2.00%

1/19/12 Consumer Price Index (YoY)

DEC 3.1% 3.4% 2/1/12 Electronics Sector Index JAN - - 49.7

Date Statistic For Survey Prior Date Statistic For Survey Prior16-18 JAN Customs Exports (YoY) DEC - - -12.4% 1/19/12 Unemployment Rate SA DEC - - 3.4%16-18 JAN Customs Imports (YoY) DEC 4.7% -2.4% 1/19/12 Composite Interest Rate DEC - - 0.48%

16-18 JAN Customs Trade Balance DEC -$1141M -$1373M 1/20/12 CPI - Composite Index (YoY)

DEC - - 5.7%

16-18 JAN Total Car Sales DEC - - 25664 1/26/12 Exports YoY% DEC - - 2.0%1/25/12 Benchmark Interest Rate 25-Jan - - 3.25% 1/26/12 Imports YoY% DEC - - 8.8%

26-28 JAN Total Capacity Utilization ISIC

DEC - - 40.1 1/31/12 Money Supply M1 - in HK$ (YoY)

DEC - - 3.1%

26-30 JAN Mfg. Production Index ISIC (YoY)

DEC - - -48.59 1/31/12 Money Supply M2 - in HK$ (YoY)

DEC - - 3.6%

1/31/12 Business Sentiment Index DEC - - 39.0 1/31/12 Money Supply M3 - in HK$ (YoY)

DEC - - 3.5%

1/31/12 Current Account Balance (USD)

DEC - - -$136M 1/31/12 Govt Mthly Budget Surp/Def HK$

DEC - - -1.4B

1/31/12 Total Exports in US$ Million DEC - - $15287M 2/2/12 Retail Sales - Value (YoY) DEC - - 23.50%

1/31/12 Total Exports YOY% DEC - - -13.1% 2/2/12 Retail Sales - Volume (YoY)

DEC - - 16.90%

1/31/12 Total Imports in US$ Million DEC - - $15068M 03-06 FEB Purchasing Managers Index JAN - - 49.7

1/31/12 Total Imports YOY% DEC - - -1.9% 2/7/12 Foreign Currency Reserves JAN - - - -

1/31/12 Total Trade Balance DEC - - $218M 16-18 FEB Composite Interest Rate JAN - - - -

1/31/12 Overall Balance in US$ Million

DEC - - -$1506M 2/20/12 CPI - Composite Index (YoY)

JAN - - - -

Source: Bloomberg Source: Bloomberg

Source: Bloomberg Source: Bloomberg

Thailand Hong Kong

US SingaporeEconomic Announcement

Regional Market Focus 17 January 2012

11 of 15

Date Statistic For Survey Prior Date Statistic For Survey Prior23-27 JAN Total Local Auto Sales DEC - - 67656 16-27 JAN Exports YoY% NOV - - -4.9%23-27 JAN Total Motorcycle Sales DEC - - 642126 16-27 JAN Imports YoY% NOV - - 41.4%2/1/12 Total Trade Balance DEC - - $1526M 1/31/12 CPI Moving Average (YoY) JAN - - 6.7%2/1/12 Inflation NSA (MoM) JAN - - 0.57% 1/31/12 CPI (YoY) JAN - - 4.9%2/1/12 Inflation (YoY) JAN - - 3.79% 09-21 FEB Exports YoY% DEC - - - -2/1/12 Exports (YoY) DEC - - 8.3% 2/29/12 CPI Moving Average (YoY) FEB - - - -2/1/12 Core Inflation (YoY) JAN - - 4.34% 2/29/12 CPI (YoY) FEB - - - -2/1/12 Total Imports (YoY) DEC - - 18.4% 09-20 MAR Exports YoY% JAN - - - -

2/1/12 Consumer Confidence Index

JAN - - 116.6 09-20 MAR Imports YoY% JAN - - - -

01-07 FEB Danareksa Consumer Confidence

JAN - - - - 15-30 MAR GDP (YoY) 4Q - - 8.4%

01-15 FEB Annual GDP 2011 - - 6.10% 3/30/12 CPI Moving Average (YoY) MAR - - - -03-06 FEB Foreign Reserves JAN - - $110.12B 3/30/12 CPI (YoY) MAR - - - -

03-06 FEB Net Foreign Assets (IDR Tln)

JAN - - 965.87T 10-20 APR Exports YoY% FEB - - - -

07-10 FEB Money Supply M1 (YoY) DEC - - 16.9% 10-20 APR Imports YoY% FEB - - - -07-10 FEB Money Supply M2 (YoY) DEC - - 16.2% 4/30/12 CPI Moving Average (YoY) MAR - - - -

Source: Bloomberg

Sri Lanka

Source: Bloomberg

Indonesia

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