MICA (P) 081/12/2011 Ref No: RM2012_0053 1 of 16

Phillip Securities Research Pte Ltd

Regional Market Focus

19 March 2012

Singapore STI: -0.50% to 3011 MSCI Asia Pac ex-Japan: -0.09% Euro Stoxx 50: +0.55% S&P500: +0.11% to 1404 Singapore's non-oil domestic exports surged 30%y-y for Feb12, expansion was

broad based across countries with out-performance to the US, HK and Thailand. Electronics exports also advanced 23%. Evening out contractions in Jan, the two month performance was a good start for the year and 4q11 is the likely economic bottom for Singapore. Will this continue? We think we may still have a few more months to go of global economic expansion before we start worrying about a slowdown again in the second half of the year, as fiscal withdrawal pressures mount in the US and EZ.

China's property price data showed sequential contraction in most major Chinese cities, new home prices in Beijing fell 0.1%m-m and Shanghai, fell 0.2%m-m. Premier Wen has said that there will be no let up in policy to contain property prices. Our view of China is that hard landing risks have risen dramatically, we can expect fiscal loosening and reserve ratio cuts, but no interest rate cuts as inflation and property prices are not seen as contained yet.

Asian markets over the last two days have not further advanced to build on their bright mid week movements last week, while the US certainly has. We are hopeful that gains will start to be built over the course of this week as data maintains its expansionary momentum. Over the short to medium term, we have been saying that stocks face a strange win-win underlying scenario, with corrections likely used to add positions: if economic data is strong, stocks will of course rise; if economic data is weak, corrections will likely give way to a wave of policy induced buying. This policy safety net is still largely in place and accommodative: the Fed may start talking about QE3 again if econ data weakens, further operation twist is likely to boost housing, and the ECB we believe does not have much room to reverse its wave of liquidity due to EZ recession risk. China however remains the more likely near term prospect of a policy announcement, as the economy's last pillar of growth - consumption - put in a below expectations result.

For our larger trend market outlook, which is much less optimistic, see Strategy 15 Feb 2012.

For our Singapore Sector Strategy please see: Sector Strategy 5th Mar 2012.

Close +/- % +/-FSSTI 3010.68 -15.16 -0.50P/E (x) 9.96P/Bv (x) 1.41

3.64Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

3/16 6/16 9/16 12/16 3/16

Source: Bloomberg

Regional Market Focus 19 March 2012

2 of 16

Hong Kong Local stocks declined. The HSI and HSCEI dropped 35.68 points and 24.18

points to 21317.85 and 11216.39 respectively. Market volume was 60.798 billion. Without any significant news, the HSI swung between positive and negative. As

expected, the benchmark index gained a strong support from the 20 SMA (21290) and closed above that level.

Technically, the benchmark index performed a going down and down trend. Should the HSI close below the 10 SMA (21114) a deep consolidation is expected. We therefore suggest that investors pay attention to the risk control.

We peg resistance for the HSI at 21700 and support at 21300

Close +/- % +/-HSI INDEX 21317.85 -35.68 -0.17P/E (x) 9.98P/Bv (x) 1.53

3.25Dividend Yield

HANG SENG INDEX

16000

18000

20000

22000

24000

26000

3/16 6/16 9/16 12/16 3/16

Source: Bloomberg

Thailand The SET index surprisingly rallied sharply and outperformed its regional peers

driven by buying in big-cap energy, property and commerce counters. Foreign buying of Thai equities also topped Bt4.8bn last Fri.

Overall bullish bias remains intact as a sharp rise of 1.86% in global crude oil prices should help lift energy stocks though the Dow finished the session slightly lower last Fri. Heavy foreign buying of local shares to the tune of Bt4.8bn last Fri would also help big-caps to lead the market’s advances. However as the SET index pretty much outperformed its regional peers last Fri and short and medium term technical indicators showed a negative divergence, we reckon that gains will be gradual amid growing risks while there remains a lack of strong fresh catalysts to drive the market higher.

Even though we think the SET index could be headed for a test of 1200 in the near term, sector rotation would continue after an over-extended market rally. For short-term trading strategy, we therefore advise investors to gradually book profits around resistance levels. Today energy and auto stocks are likely to perform well.

Today we peg resistance for the SET index at 1200-1210 and support at 1180-1171.

Close +/- % +/-SET INDEX 1189.56 18.22 1.56P/E (x) 15.75P/Bv (x) 2.20

3.61Dividend Yield

STOCK EXCH OF THAI INDEX

800850900950

10001050110011501200

3/16 6/16 9/16 12/16 3/16

Source: Bloomberg

Indonesia JCI tumbled by 11.443 points or 0.28% to 4,028.537 on Friday (16/03). Four out

of nine sectors ended down yesterday, led by miscellaneous industry sector which fell 2.55%, followed by agriculture sector which shed 1.60% and basic industry sector which declined 1.52%. As many as 122 JCI’s constituents fell, 90 shares up, and 105 shares were unchanged yesterday, where the total turnover on regular market was IDR 3.938 trillion (USD 429.443 million)

We estimate the JCI, we are looking at 4,000 and 4,050 as JCI's support and resistance.

Close +/- % +/-JCI Index 4028.54 -11.44 -0.28P/E (x) 20.65P/Bv (x) 2.43

1.90Dividend Yield

JAKARTA COMPOSITE INDEX

30003200340036003800400042004400

3/16 6/16 9/16 12/16 3/16

Source: Bloomberg

Regional Market Focus 19 March 2012

3 of 16

Sri Lanka The Colombo Bourse noted huge privately negotiated deals on the Blue Chip

Company John Keels Holdings during the day for the value of LKR 14.3Bn; hence the day generated a total turnover of LKR 15.7Bn. These activities boosted the market today and enabled the main All Share Price index (ASPI) to gain 51.85 points and closed at 5, 449.05 points. The more liquid Milanka Price Index (MPI) gained 30.57 points to close at 4,864.25. The market capitalization stands at LKR 1.99Tn.

235 counters traded during the day to record that turnover of LKR 15.7Bn; out of which LKR 14.5Bn was generated through privately negotiated deals. The privately negotiated deals were on JKH.N, COMB.N, HNB.N and PCP.N for the values of LKR 14.3Bn, LKR 46.2Mn, LKR 150Mn and LKR 22.5Mn.

The market recorded 7,247 trades during the day, which resulted in 113.4Mn shares changing hands. The price losers outnumbered the price gainers by 154:53. The market recorded a net foreign inflow of LKR 14.5Bn.

Close +/- % +/-CSEALL Index 5449.05 51.85 0.96P/E (x) 11.48P/Bv (x) 1.76

2.32Dividend Yield

SRI LANKA COLOMBO ALL SH

45005000550060006500700075008000

3/16 6/16 9/16 12/16 3/16

Source: Bloomberg

Australia The ASX200 finished down 1.6 points (0.04%) on Friday to close out the week at

4276. The market continues to see the 4300 level as a bit of a barrier that’s putting a roof on things right now. Once again it was the banks in positive territory while the major resources companies were negative. For the week, the 200 rose 1.5%.

Overseas markets were mixed on Friday with uninspiring economic data limiting optimism. Comments from Christine Lagarde of the IMF over the weekend are sure to boost positivity today.

Australian futures were quite positive over the weekend and the market has been trading reasonably strong this morning. Insurance, property and iron ore stocks are stronger however Woolworths (WOW) and Newcrest (NCM) have gone ex div.

Close +/- % +/-S&P/ASX 200 INDEX 4276.16 -1.61 -0.04P/E (x) 14.27P/Bv (x) 1.72

6.31Dividend Yield

STANDARD & POORS/ ASX 200 INDEX

3500

4000

4500

5000

5500

3/16 6/16 9/16 12/16 3/16

Source: Bloomberg

Regional Market Focus 19 March 2012

4 of 16

Hong Kong China Life – Profits decreased sharply in 2011 and may rebound obviously in future Recommendation: BUY Previous close: $21 Fair value: $26 According to the data from CIRC, the premium incomes of China Life ( or the Group) reached RMB318.253 billion, and dropped 4.44% y-

y by the end of 2011, which had continued to decrease since July 2011; The Group’s total assets increased significantly by 7.99% to RMB1.52 trillion compared to the end of 2010, equivalent to BVPS of

RMB6.23, but 15.58% lower than that of 2010; By the end of Sep 2011, accumulated net profits of China Life recorded RMB16.717 billion, decreasing significantly by 32.98% y-y, much

lower than our expectation; Recently, China Life announced its net profits would decreased by 40%-50% y-y in 2011, therefore we reduce our previous estimation,

and forecast the Group’s net profits to decrease approximately by 43% y-y to RMB19.2 billion with an EPS of RMB0.68; Due to obvious slow-down of growth rates in both premiums incomes and investment returns, and large volatility in the market

environment, we believe the profits of the Group would face large challenges in the short run, and reduce its 12-month target price to HK$26.00, which is 24% higher than the latest closing price, and equivalent to 2012P/E21.8x and P/B2.7x respectively. Maintain Buy rating.

Thailand Khon Kaen Sugar Industry – Company Results Recommendation: TRADING BUY Previous close: Bt14.30 Fair value: Bt15.80 Sales volume growth and better selling prices across all product lines led KSL to report a significant earnings growth in 1QFY12

compared to the same period last year. In this period, a sharp rise in expenses was due chiefly to exceptional charges. We reiterate a ‘TRADING BUY’ rating on KSL with a target price of Bt15.80/share. Media and Publishing Sector – Sector Update Recommendation: NEUTRAL Total ad spending in Thailand rose by 6.61% in Feb 2012 from a year ago, marking the second straight month of recovery after a

contraction in Oct-Dec 2011 hit by floods. In our view, the ad industry now appears to have returned back to normal. Cinema ad spending grew the most among all media and MAJOR would be the prime beneficiary of a sharp rise in spending on cinema

ads. Spending on mass media also recovered at a healthy clip. BEC was the only TV broadcaster that saw ad expenditures rise in Jan 2012.

We maintain a ‘NEUTRAL’ position in the MEDIA space. For companies with much of the revenue coming from ad revenue, our top pick is MCOT with a target price of Bt35.25/share. For companies with revenue not tied to ad revenue, we like AS with a target price of Bt19.70/share.

Regional Market Focus 19 March 2012

5 of 16

Market News

US An unlikely leader is driving the US stock market toward record heights as the economy and the European financial system continue to

improve. At around 13,250 and 1,400, the Dow Jones Industrial Average and Standard & Poor's 500 respectively are both roughly 10 per cent from their historic highs of 14,164 and 1,565 reached in 2007. In 2007, the largest of the 10 sectors on the Standard & Poor's 500, and the one that invariably decided the market's course, was the financial sector. For five years, banks, lenders and brokerages have been a sort of stock-market leper colony, shunned by investors and addled by infirmities. After the Fed cleared most major banks in the latest 'stress test' last week and Greece skirted bankruptcy by receiving its second bailout, the sector finally looked healthy again. With housing data this week expected to be strong, the property-sensitive banks may continue their recovery, and investors may learn to love it again. (Source: BT Online)

Singapore Non-oil domestic exports (NODX) again confounded the market with a whopping year-on-year 30.5 per cent spike last month, double

what private-sector economists had expected. The surge was all the more dramatic because it came after a 2.4 per cent dip in January and is powered by an expansion in both electronic and non-electronic shipments. It led Leslie Tang, an economist at broking firm OSK-DMG, to pronounce that 'the worst could be over for the NODX', which wobbled through most of 2011. Compared to a month ago, the NODX recovered from a 0.5 per cent slip in January to post a seasonally adjusted 6.2 per cent jump in February, according to the latest trade figures unveiled yesterday by International Enterprise (IE) Singapore, the trade promotion agency. Robert Prior-Wandesforde, director of Asian Economics at Credit Suisse, calculated that the level of last month's NODX was up more than a seasonally adjusted 28 per cent from its recent low in October. Others played down February's NODX showing, pointing to 'seasonal distortions for earlier Lunar New Year holidays (versus February 2011)'. (Source: BT Online)

Greater China Region China’s statistics bureau said local officials forced some hotels, coal miners and aluminum makers to report false numbers, highlighting

flaws in data tracking the world’s second-largest economy. Statistics officials in Hejin city in northern Shanxi province gave companies “seriously untrue” numbers to submit for 2011, the Beijing-based National Bureau of Statistics said in a statement on its website dated March 12. Discrepancies between national and local numbers for gross domestic product indicate the task that remains for officials seeking to bolster confidence in the statistics system. So far, steps have included crackdowns on leaks of market-moving numbers and direct online reporting of data by companies to limit opportunities for provincial officials to massage the numbers. (Source: Bloomberg)

China, the largest foreign U.S. creditor, increased its holdings of U.S. government securities in January for the first time in six months as European leaders struggled to contain the region’s sovereign-debt crisis. Holdings rose by 0.7 percent to $1.16 trillion, the first growth in China’s stake since July, Treasury data released yesterday show. The report also showed that net foreign purchases of Treasuries (HOLDTOT) totaled almost $83 billion in January, compared with net selling of $14.9 billion the month before. (Source: Bloomberg)

Thailand Foreign investors remained net buyers of Thai equities to the tune of Bt4,810.30mn last Fri. (Source: Bisnews) Thailand’s economy is expected to return to normal and see growth in late 2Q12, according to NESDB, adding that current rising inflation

is due largely to the impact from last year’s floods. (Source: Bisnews) Japanese automakers plan to spend more than Bt64bn to boost capacity in Thailand. Toyota leads the pack with a plan to spend up to

Bt8.2bn on construction of its fourth plant in Thailand while Isuzu would build its new Bt6.5bn plant in Chachaengsao Province. Suzuki and Mitsubishi eco-car production lines are expected to be up and running at the end of Mar 2012. Nissan positions Thailand as its regional production hub and Bridgestone would spend Bt20bn to build a new plant. (Source: Krungthep Turakij)

Indonesia The government is preparing four models for the distribution of the IDR 4.8 trillion (USD 523.2 million) transportation subsidy as aid after

raising subsidized fuel oil price. Transportation Minister, said that this policy benefits legal public transportation entities. The first model is the addition of Public Service Obligation (PSO) for public transportation from Kereta Api Indonesia (land transportation) and Pelayaran Nasional Indonesia (Pelni) (sea transportation). The addition of the PSO is expected to maintain public transportation tariff at its current level. The second model is the provision of relief in spare parts prices, especially for imported parts. The third model is the acceleration of the provision of converter kits for public transport to hasten the conversion from fuel oil to gas oil. This will lower transportation expense. The fourth model is vehicle rejuvenation. The Transportation Ministry, along with banks and the Finance Ministry, are trying to provide tax and interest relief for rejuvenated vehicles. Motorized vehicle tax will be provided as compensation for a year. The bank loan interest relief will be in the form of compensation in interest payments for each vehicle rejuvenation. The addition of PSO will be given to economy class state-owned public transportation. This policy is expected to suppress the rise in public transportation fares after the fuel oil price is raised. (Source: Indonesia Finance Today)

The setting of Tanjung Lesung (Banten) and Sei Mangkei (North Sumatra) as special economic zone at the end of February 2012 is targeted to draw in investments amounting to IDR 65.3 trillion (USD 7.12 billion). Government Regulation Number 26 Year 2012 on Tanjung Lesung Special Economic Zone stated that the 1,500-hectare land is set as a tourism special economic zone. National Secretary of Special Economic Zone, said that the initial investment value targeted by the government for Tanjung Lesung is IDR 60 trillion. The setting of Sei Mangkei as special industry, logistics and tourism zone is regulated in Government Regulation No. 29/2012 on Sei Mangkei Special Economic Zone. The government estimates that the investment inflow to the 2,002.77-hectare land reaches IDR 5 trillion. To boost investment inflow, the government plans to provide fiscal facilities in the form of income tax incentives for investors in

Regional Market Focus 19 March 2012

6 of 16

the special economic zones. This incentive is stated in the Law on Special Economic Zone. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka's tourist arrivals increased 27 percent to 83,549 in February 2012, from a year earlier, and visitors during the first two months

were up 21 percent to 169,423, the state tourist promotion office said. South Asia, the second largest generating market, showed an increase of 14.1 percent with Indian arrivals up 12.6 percent to 11,342 and Maldives up 15.4 percent to 2,675. Arrivals from Western Europe rose 23.4 percent to 38,364, though UK visitors fell 9 percent to 8,746. German arrivals rose 42.6 percent to 7,654, arrivals from France increased 27.7 percent to 6,378 and those from the Netherlands rose 15 percent to 2,596. (Source: LBO)

Sri Lanka's tea industry has called for urgent improvements in productivity and new markets to ride out volatility in major Middle Eastern markets that continue to dampen tea export earnings. While there is strong demand for tea in global markets, price increases for Ceylon tea, to compensate for increased cost of production, is seen as unlikely, the Planters' Association said in a statement. Uncertainty in Middle Eastern countries, that account for a majority of Ceylon tea exports, continues to cloud industry earning prospects for the year, it said. Tea brokers and exporters said that about 55 percent of Sri Lankan tea is going into the Middle East. Out of this, Iran is the biggest buyer of Ceylon tea, followed by Syria. (Source: LBO)

Australia Troubled contractor Leighton (LEI) is in trouble with the Australian Securities and Investments Commission (ASIC). ASIC has determined

that LEI failed to inform investors in a timely manner of a A$907m reduction to profits early last year. The company announced to the market that it expected a A$427m profit but just one month later announced a A$480m loss. The Chairman of ASIC has called for an increase in penalties for violations of continuous disclosure rules and LEI was fined A$300,000. (Source: The Sydney Morning Herald)

Western Australian politicians have given a boost to the unconventional gas. WA’s Environment Minister Bill Marmion has decided to permit small-scale hydraulic fracturing in the Perth Basin without the need for environmental assessments. Norman Moore, state Minister for Mines, said it was too soon to determine what impact on exports the unconventional gas industry could have. (Source: The Sydney Morning Herald)

Brazilian iron ore giant Vale SA has shut a railroad that’s used to transport material from the world’s largest iron ore mine after a construction accident. The company shut the Carajas railroad in northern Brazil after a bridge it was building next to the rail line collapsed March 16. Vale has not provided an estimate for the when transportation is expected to resume. (Source: Bloomberg)

Regional Market Focus 19 March 2012

7 of 16

Dollar Index 79.76 -0.04% Gold 1,660.00 -0.06%

Crude oil 107.06 +1.86% US Treasury 10yr Yield 2.294 +0.01%

DJI 13,232.62 -0.15% S&P 500 INDEX 1,404.17 +0.11%

SHCOMP 2,404.74 +1.30%

Source: Bloomberg

10000

11000

12000

13000

14000

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

70

75

80

85

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

1200

1400

1600

1800

2000

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

70

80

90

100

110

120

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-121.5

2

2.5

3

3.5

4M

ar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

2000

2300

2600

2900

3200

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

1000

1100

1200

1300

1400

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Regional Market Focus 19 March 2012

8 of 16

Source: Bloomberg

Major World Indices

JCI -0.28% 4,028.54

HSI -0.17% 21,317.85

KLCI -0.51% 1,571.40

KOSPI -0.46% 2,034.44

NIKKEI 0.06% 10,129.83

SET 1.56% 1,189.56

SHCOMP 1.30% 2,404.74

SENSEX -1.19% 17,466.20

ASX -0.04% 4,276.20

FTSE 100 0.42% 5,965.58

DOW -0.15% 13,232.62 S&P 500 0.11% 1,404.17 NASDAQ -0.04% 3,055.26

COLOMBO 0.96% 5,449.05

STI -0.50% 3,010.68

Regional Market Focus 19 March 2012

9 of 16

Top Value & VolumeSingaporeTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)GENTING SINGAPOR 1.65 +0.61 +0.010 97,006 GOLDEN AGRI-RESOURCES LTD 0.75 +0.00 +0.000 67,949GLOBAL LOGISTIC 2.19 -0.90 -0.020 76,062 GENTING SINGAPORE PLC 1.65 +0.61 +0.010 58,674WILMAR INTERNATI 4.94 -0.40 -0.020 72,754 LIONGOLD CORP LTD 1.25 +32.28 +0.305 49,798DBS GROUP HLDGS 14.31 -0.42 -0.060 59,930 GLOBAL LOGISTIC PROPERTIES 2.19 -0.90 -0.020 38,156SINGAP TELECOMM 3.12 -0.32 -0.010 57,095 PSL HOLDINGS LTD 0.47 +5.68 +0.025 37,778LIONGOLD CORP LT 1.25 +32.28 +0.305 51,260 ARTIVISION TECHNOLOGIES LTD 0.27 +8.16 +0.020 36,780GOLDEN AGRI-RESO 0.75 +0.00 +0.000 49,734 UPP HOLDINGS LTD 0.27 +3.85 +0.010 33,148STX OSV HOLDINGS 1.78 +2.31 +0.040 42,945 YOMA STRATEGIC HLDGS LTD 0.46 +1.10 +0.005 33,106NOBLE GROUP LTD 1.42 +0.00 +0.000 40,558 NOBLE GROUP LTD 1.42 +0.00 +0.000 28,508YANGZIJIANG SHIP 1.39 +1.83 +0.025 38,657 YANGZIJIANG SHIPBUILDING 1.39 +1.83 +0.025 27,820

Hong KongTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)TENCENT HOLDINGS 217.00 +3.93 +8.20 1,740,433 BANK OF CHINA-H 3.31 -0.30 -0.01 270,302AIA GROUP LTD 28.40 +0.00 +0.00 1,618,732 GCL-POLY ENERGY 2.38 -4.80 -0.12 241,231CHINA OVERSEAS 14.64 -4.69 -0.72 1,536,718 CHINA CONST BA-H 6.27 +0.32 +0.02 184,842CHINA MOBILE 83.75 -1.06 -0.90 1,493,079 LUMENA NEWMAT 2.17 -1.81 -0.04 158,122CNOOC LTD 16.74 -1.06 -0.18 1,262,608 NAN HAI CORP LTD 0.03 -15.63 -0.01 157,840CHINA CONST BA-H 6.27 +0.32 +0.02 1,159,093 IND & COMM BK-H 5.28 -0.75 -0.04 144,238GALAXY ENTERTAIN 20.10 +6.57 +1.24 1,159,091 CHINA PUBLIC HEA 0.05 +0.00 +0.00 138,485CHINA UNICOM HON 13.74 -1.72 -0.24 1,156,657 QIN JIA YUAN 0.11 -8.87 -0.01 135,349BANK OF CHINA-H 3.31 -0.30 -0.01 892,730 CHINA TELECOM-H 4.53 -0.44 -0.02 120,001PING AN INSURA-H 62.20 -1.82 -1.15 873,290 G-RESOURCES GROU 0.53 +1.92 +0.01 115,352

ThailandTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)PTT GLOBAL CHEM 71.00 +4.03 +2.75 2,365,314 BTS GROUP HOLDIN 0.78 +4.00 +0.03 793,529INDORAMA VENTURE 39.25 +3.97 +1.50 2,270,317 PROP PERFECT PCL 1.04 +10.64 +0.10 406,043PTT PCL 354.00 +2.61 +9.00 1,875,408 JASMINE INTL PCL 2.78 -2.11 -0.06 398,774PTT EXPL & PROD 174.00 +0.58 +1.00 1,580,453 BANGKOK LAND PCL 0.73 +2.82 +0.02 269,028SIAM COMM BK PCL 143.50 +2.14 +3.00 1,404,642 TRUE CORP PCL 3.86 -0.52 -0.02 258,195BANGKOK BANK PUB 185.50 +0.27 +0.50 1,315,956 ITALIAN-THAI DVL 3.98 +3.11 +0.12 225,899KASIKORNBANK PCL 157.00 +1.62 +2.50 1,229,270 G STEEL PCL 0.49 +0.00 +0.00 224,853JASMINE INTL PCL 2.78 -2.11 -0.06 1,129,649 IRPC PCL 4.78 +3.91 +0.18 153,108CHAROEN POK FOOD 37.50 +1.35 +0.50 1,123,244 SANSIRI PUB CO 2.08 +1.96 +0.04 149,189ADVANCED INFO 171.50 -1.15 -2.00 1,056,973 TMB BANK PCL 1.76 +0.00 +0.00 145,665

IndonesiaTop 10 Value Last % Chg Chg Value ('mn) Top 10 Volume Last % Chg Chg Volume ('k)ASTRA INTERNATIO 71,000 -2.81 -2,050 488,678 SENTUL CITY TBK 260 6.12 15 486,297BANK MANDIRI 6,900 1.47 100 196,774 BHAKTI INVESTAMA 345 21.05 60 462,983MEDIA NUSANTARA 1,950 8.33 150 160,293 INTILAND DEVELOP 305 3.39 10 119,258BHAKTI INVESTAMA 345 21.05 60 149,264 BAKRIELAND DEV 131 -1.50 -2 112,556BANK RAKYAT INDO 6,800 0.00 0 130,662 ALAM SUTERA REAL 610 0.00 0 102,652PERUSAHAAN GAS N 3,800 3.40 125 128,176 MEDIA NUSANTARA 1,950 8.33 150 86,431SENTUL CITY TBK 260 6.12 15 122,899 TRADA MARITIME 960 1.05 10 82,688UNITED TRACTORS 29,400 -1.01 -300 122,434 GREENWOOD SEJAHT 265 33.17 66 81,524BANK CENTRAL ASI 7,900 1.28 100 104,894 ENERGI MEGA PERS 187 -0.53 -1 74,778JASA MARGA 4,975 2.58 125 100,991 LAGUNA CIPTA GRI 122 -3.17 -4 58,525

Sri LankaTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)JOHN KEELLS HLDG 195.10 -0.10 -0.20 14,905,150 JOHN KEELLS HLDG 195.10 -0.10 -0.20 76,819HATTON NATL BANK 153.90 2.60 3.90 150,054 KALPITIYA BEACH 9.50 0.00 0.00 5,880COMMERCIAL BK 100.00 0.00 0.00 131,063 WASKADUWA BEACH 10.00 5.26 0.50 4,058KALPITIYA BEACH 9.50 0.00 0.00 61,105 SOFTLOGIC HOLDIN 12.90 0.78 0.10 1,627WASKADUWA BEACH 10.00 5.26 0.50 42,601 ENVIRONMENTAL RE 16.60 5.73 0.90 1,592DIPPED PRODUCTS 90.00 -2.70 -2.50 41,890 COMMERCIAL BK 100.00 0.00 0.00 1,311ENVIRONMENTAL RE 16.60 5.73 0.90 26,402 BLUE DIAMONDS JE 6.00 5.26 0.30 1,178PC PHARMA LTD 23.00 0.88 0.20 22,946 FREE LANKA CAPIT 2.10 0.00 0.00 1,136VALLIBEL ONE LTD 20.80 1.46 0.30 22,228 VALLIBEL ONE LTD 20.80 1.46 0.30 1,054SOFTLOGIC HOLDIN 12.90 0.78 0.10 21,387 PC PHARMA LTD 23.00 0.88 0.20 1,019Source: Bloomberg

Regional Market Focus 19 March 2012

10 of 16

AustraliaTop 10 Value Last % Chg Chg Value ('k) Top 10 Volume Last % Chg Chg Volume ('k)BHP BILLITON LTD 34.97 -0.60 -0.21 402,975 APEX MINERALS NL 0.00 0.00 0.00 84,500COMMONW BK AUSTR 48.96 -0.04 -0.02 267,622 ABM RESOURCES NL 0.05 4.17 0.00 69,270WESTPAC BANKING 21.13 1.00 0.21 236,172 INCITEC PIVOT LTD 3.28 0.00 0.00 59,433FORTESCUE METALS 5.81 -2.84 -0.17 217,099 TELSTRA CORP LTD 3.26 0.31 0.01 52,808INCITEC PIVOT LT 3.28 0.00 0.00 195,552 TAMASKA OIL & GAS LTD 0.00 -50.00 0.00 50,500RIO TINTO LTD 65.12 0.29 0.19 187,144 METAL STORM LTD 0.00 0.00 0.00 47,468QR NATIONAL LTD 3.96 -0.50 -0.02 175,351 QR NATIONAL LTD 3.96 -0.50 -0.02 44,088NATL AUST BANK 24.18 1.00 0.24 173,618 CENTRAL PETROLEUM LTD 0.06 14.55 0.01 40,136TELSTRA CORP 3.26 0.31 0.01 172,345 KAGARA LTD 0.17 -2.94 -0.01 38,009QBE INSURANCE 13.14 1.08 0.14 170,315 FORTESCUE METALS GROUP 5.81 -2.84 -0.17 37,070Source: Bloomberg

Commodities % Chg Chg Last Price of S$1 Price of US$1GOLD SPOT (US$/OZ) -0.06 -1.08 1,660.00 0.7509 1.0590SILVER SPOT (US$/OZ) +0.01 +0.00 32.53 0.7887 0.9917WTI Cushing Crude Oil Spot Price (US$/bbl) +1.86 +1.95 107.06 0.6036 1.3175

0.5019 1.58440.7953 1.0000

Commodities % Chg Chg Last 5.0280 6.3229Malaysian Rubber Board Standard (MYR/kg) +0.22 +2.50 1,137.75 6.1732 7.7629PALM OIL (MYR/Metric Tonne) +0.50 +16.50 3,348.50 66.3600 83.4300

895.2546 1125.7800Index % Chg Chg Last 2.4214 3.0563 DOLLAR INDEX SPOT -0.04 -0.03 79.76 24.4211 30.7100Source: 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 0.06 0.06 0.06 0.096 Months 0.13 0.13 0.12 0.122 Years 0.36 0.36 0.31 0.263 Years 0.55 0.55 0.44 0.365 Years 0.99 1.07 0.88 0.7910 Years 2.29 2.28 2.03 1.9330 Years 3.40 3.41 3.18 3.09

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

US Treasury Yields

2.231.93

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

Regional Market Focus 19 March 2012

11 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior3/19/2012 NAHB Housing Market Index MAR 30 29 3/21/2012 Automobile COE Open Bid Cat A 21-Mar - - 565513/20/2012 Housing Starts FEB 695K 699K 3/21/2012 Automobile COE Open Bid Cat B 21-Mar - - 793043/20/2012 Housing Starts MOM% FEB -0.6% 1.5% 3/21/2012 Automobile COE Open Bid Cat E 21-Mar - - 768813/20/2012 Building Permits FEB 685K 676K 3/23/2012 CPI (MOM) - NSA FEB - - 0.9%3/20/2012 Building Permits MOM% FEB 0.4% 0.7% 3/23/2012 CPI (YoY) FEB - - 4.8%3/21/2012 MBA Mortgage Applications 16-Mar - - -2.4% 3/26/2012 Industrial Production MoM SA FEB - - 3.3%3/21/2012 Existing Home Sales FEB 4.60M 4.57M 3/26/2012 Industrial Production YoY FEB - - -8.8%3/21/2012 Existing Home Sales MoM FEB 0.7% 4.3% 3/30/2012 Credit Card Bad Debts FEB - - 16.1M3/22/2012 Initial Jobless Claims 17-Mar - - 351K 3/30/2012 Credit Card Billings FEB - - 3012.1M3/22/2012 Continuing Claims 10-Mar - - 3343K 3/30/2012 Bank Loans & Advances (YoY) FEB - - 28.4%3/22/2012 Bloomberg Consumer Comfort 18-Mar - - -33.7 3/30/2012 M1 Money Supply (YoY) FEB - - 13.1%

3/22/2012 Bloomberg Economic Expectations

MAR - - -7 3/30/2012 M2 Money Supply (YoY) FEB - - 9.9%

3/22/2012 House Price Index MoM JAN 0.2% 0.7% 4/3/2012 Electronics Sector Index MAR - - 51.03/22/2012 Leading Indicators FEB 0.6% 0.4% 4/3/2012 Purchasing Managers Index MAR - - 50.43/23/2012 New Home Sales FEB 325K 321K 4/4/2012 Automobile COE Open Bid Cat A 4-Apr - - - -

Date Statistic For Survey Prior Date Statistic For Survey Prior16-20 MAR Total Car Sales FEB - - 76246 3/19/2012 Unemployment Rate SA FEB - - - -19-23 MAR Current Account Balance (USD) JAN $1500M $1940M 3/19/2012 Composite Interest Rate FEB - - 0.49%19-21 MAR Customs Exports (YoY) FEB - - -6.0% 3/22/2012 Bal of Paymts - Overall 4Q - - $23.56B19-21 MAR Customs Imports (YoY) FEB - - -4.2% 3/22/2012 CPI - Composite Index (YoY) FEB - - 6.1%19-21 MAR Customs Trade Balance FEB - - -$1130M 3/27/2012 Exports YoY% FEB - - - -19-23 MAR Total Exports in US$ Million JAN - - $16856M 3/27/2012 Imports YoY% FEB - - -10.5%19-23 MAR Total Exports YOY% JAN - - -2.1% 3/27/2012 Trade Balance FEB - - -8.9B19-23 MAR Total Imports in US$ Million JAN - - $17094M 3/29/2012 Retail Sales - Value (YoY) FEB - - - -19-23 MAR Total Imports YOY% JAN - - 19.6% 3/29/2012 Retail Sales - Volume (YoY) FEB - - - -

19-23 MAR Total Trade Balance JAN - - -$238M 3/30/2012 Money Supply M1 - in HK$ (YoY) FEB - - 1.3%

19-23 MAR Overall Balance in US$ Million JAN - - -$1029M 3/30/2012 Money Supply M2 - in HK$ (YoY) FEB - - 5.6%

3/21/2012 Benchmark Interest Rate 21-Mar 3.00% 3.0% 3/30/2012 Money Supply M3 - in HK$ (YoY) FEB - - 5.5%

3/23/2012 Foreign Reserves 16-Mar - - $179.1B 3/30/2012 Govt Mthly Budget Surp / Def HK$

FEB - - 43.0B

3/23/2012 Forw ard Contracts 16-Mar - - $29.0B 4/5/2012 Purchasing Managers Index MAR - - 52.826-28 MAR Mfg. Production Index ISIC SA FEB - - 166.04 4/10/2012 Foreign Currency Reserves MAR - - $294.7B

US SingaporeEconomic Announcement

Source: Bloomberg Source: Bloomberg

Thailand Hong Kong

Source: Bloomberg Source: Bloomberg

Regional Market Focus 19 March 2012

12 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior12-20 MAR Total Local Auto Sales FEB - - 76435 20-29 MAR Exports YoY% JAN - - 24.3%12-20 MAR Total Motorcycle Sales FEB - - 645863 20-29 MAR Imports YoY% JAN - - 33.7%4/2/2012 Inf lation (YoY) MAR - - 3.56% 3/30/2012 CPI Moving Average (YoY) MAR - - 6.1%4/2/2012 Inf lation NSA (MoM) MAR - - 0.05% 3/30/2012 CPI (YoY) MAR - - 2.7%4/2/2012 Core Inflation (YoY) MAR - - 4.31% 10-20 APR Exports YoY% FEB - - - -4/2/2012 Exports (YoY) FEB - - 6.1% 10-20 APR Imports YoY% FEB - - - -4/2/2012 Total Imports (YoY) FEB - - 16.0% 4/18/2012 Repurchase Rate 18-Apr - - 7.500%4/2/2012 Total Trade Balance FEB - - $923M 4/18/2012 Reverse Repo Rate 18-Apr - - 9.000%4/2/2012 Consumer Conf idence Index MAR - - 111.7 4/30/2012 CPI Moving Average (YoY) APR - - - -

02-09 APR Danareksa Consumer Conf idence

MAR - - 93.5 4/30/2012 CPI (YoY) APR - - - -

03-06 APR Foreign Reserves MAR - - $112.22B 10-21 MAY Exports YoY% MAR - - - -

03-06 APR Net Foreign Assets (IDR Tln) MAR - - 991.69T 10-21 MAY Imports YoY% MAR - - - -

4/6/2012 Money Supply - M1 (YoY) FEB - - 15.0% 5/15/2012 Repurchase Rate 15-May - - - -07-13 APR Money Supply - M1 (YoY) MAR - - - - 5/15/2012 Reverse Repo Rate 15-May - - - -07-13 APR Money Supply - M2 (YoY) FEB - - 16.0% 5/31/2012 CPI Moving Average (YoY) MAY - - - -

Date Statistic For Survey Prior

3/20/2012 Conference Board Leading Index JAN - - 0.2%

3/20/2012 Reserve Bank Board March Minutes

3/21/2012 Westpac Leading Index (MoM) JAN - - 0.5%

3/21/2012 DEWR Internet Skilled Vacancies MoM

FEB - - -0.6%

3/28/2012 Reserve Bank Board Financial Stability Review

3/29/2012 Job vacancies FEB - - -3.3%3/30/2012 HIA New Home Sales (MoM) FEB - - -7.3%3/30/2012 Private Sector Credit MoM% FEB - - 0.2%3/30/2012 Private Sector Credit YoY% FEB - - 3.5%4/1/2012 AiG Performance of Mfg Index MAR - - 5130.0%

4/1/2012 RBA Commodity Index SDR YoY%

MAR - - 3.5%

4/2/2012 RPData-Rismark House PX Actual FEB - - 0.8%

4/2/2012 TD Securities Inflation MoM% MAR - - 0.1%4/2/2012 TD Securities Inflation YoY% MAR - - 2.0%4/2/2012 Building Approvals (MoM) FEB - - 0.9%Source: Bloomberg

Source: BloombergSource: Bloomberg

Indonesia

Australia

Sri Lanka

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

GENERAL DISCLAIMER

This publication is prepared by Phillip Securities (Hong Kong) Ltd (“Phillip Securities”). By receiving or reading this

publication, you agree to be bound by the terms and limitations set out below.

This publication shall not be reproduced in whole or in part, distributed or published by you for any purpose. Phillip

Securities shall not be liable for any direct or consequential loss arising from any use of material contained in this

publication.

The information contained in this publication has been obtained from public sources which Phillip Securities has no reason

to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”)

contained in this publication are based on such information and are expressions of belief only. Phillip Securities has not

verified this information and no representation or warranty, express or implied, is made that such information or Research

is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in this

publication is subject to change, and Phillip Securities shall not have any responsibility to maintain the information or

Research made available or to supply any corrections, updates or releases in connection therewith. In no event will Phillip

Securities be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of

the information or Research made available, even if it has been advised of the possibility of such damages.

Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this material are as of the date

indicated and are subject to change at any time without prior notice.

This material is intended for general circulation only and does not take into account the specific investment objectives,

financial situation or particular needs of any particular person. The products mentioned in this material may not be suitable

for all investors and a person receiving or reading this material should seek advice from a financial adviser regarding the

suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of

that person, before making a commitment to invest in any of such products.

This publication should not be relied upon as authoritative without further being subject to the recipient’s own independent

verification and exercise of judgment. The fact that this publication has been made available constitutes neither a

recommendation to enter into a particular transaction nor a representation that any product described in this material is

suitable or appropriate for the recipient. Recipients should be aware that many of the products which may be described in

this publication involve significant risks and may not be suitable for all investors, and that any decision to enter into

transactions involving such products should not be made unless all such risks are understood and an independent

determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein

with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.

Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of a security. Any decision to

purchase securities mentioned in this research should take into account existing public information, including any

registered prospectus in respect of such security.

Disclosure of Interest

Analyst Disclosure: Neither the analyst(s) preparing this report nor his associate has any financial interest in or serves as

an officer of the listed corporation covered in this report.

Firm’s Disclosure: Phillip Securities does not have any investment banking relationship with the listed corporation covered

in this report nor any financial interest of 1% or more of the market capitalization in the listed corporation. In addition, no

executive staff of Phillip Securities serves as an officer of the listed corporation.

Phillip Securities (HK)Phillip Securities (HK)Phillip Securities (HK)Phillip Securities (HK) Ltd Ltd Ltd Ltd

2

Availability

The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or

entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the

applicable law or regulation or which would subject Phillip Securities to any registration or licensing or other requirement,

or penalty for contravention of such requirements within such jurisdiction.

© 2011 Phillip Securities (Hong Kong) Limited

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