MCI (P) 137/11/2012 Ref No: RM2013_0119 1 of 13

Regional Market Focus

Phillip Securities Research Pte Ltd

24 June 2013

Thailand

GFPT – Company Update Recommendation: ACCUMULATE Previous close: Bt8.20 Fair value: Bt8.65

We expect 2QCY13 earnings to be better than 2QCY12 as higher average selling prices (ASPs) in core chicken business would offset weakness in feed business.

Japan’s decision to lift its ban on imports of Thai raw poultry is expected to be delayed to the end of the year from Jul-Aug 2013 as earlier noted in our previous report in the wake of the H7N9 bird flu outbreak in China though Japan had already sent officials to inspect Thai chicken farms and processing plants since Mar 2013.

In our view, strong exposure to chicken business against the backdrop of a recovery in ASPs and a fall in production costs should allow GFPT to deliver 2QCY13 earnings growth in both y-y and q-q terms. We maintain an ‘ACCUMULATE’ stance on GFPT shares with a target price of Bt8.65/share.

Singapore

Amara Holdings Limited - It’s Growing! Initiate with Buy (Joshua Tan) Recommendation: Buy Previous close: S$0.565 Fair value: S$0.74

Key assets Amara Singapore, Amara Sanctuary and 100 AM are estimated to provide a base load of recurring earnings (PATMI) of nearly S$26m a year.

Visible growth profile from a pipeline of assets under development: Amara Bangkok (hotel) and Amara Signature, Shanghai (hotel, retail, commercial mixed development)

The successful completion of the Shanghai mixed development and Bangkok hotel will be key factors to its expansion efforts, potentially adding up to S$327.3m in Gross Asset Value from the current estimated S$669.6m, an almost 50% increase.

Hong Kong

Agile Property（3383.HK）- Keeping launching projects in East China

Recommendation: Accumulate Previous close: HK$8.17 Fair value: HK$9.60

In the first five months of 2013, Agile realized CNY 12.9 billion of contractual sales with the total contractual sales area reaching 1.1 million square meters, up 18.3% and 7.1% respectively YOY. The average unit price of contractual sales stood at CNY 11,737 per square meter. Till today, Agile has had CNY 4 billion worth of products that have been subscribed but not yet contracted. So Agile has finalized about 40% of its sales target for 2013, which is quite a good result.

In 2013, Agile will launch 13 new projects and 62 projects will be available for sale. According to its plan, Agile will have 6.6 million square meters available in 2013, up 15% YOY. We expect that, as Agile adopts the new tactics of speeding up turnover, the development cycle will be shortened and the sales of newly-launched projects will exceed CNY 10 billion. As far as the 2013 sales target is concerned, we believe the sales prospect is optimistic and Agile will probably finalize its sales target for 2013.

We expect that in 2013 Agile will accelerate the turnover of assets and continue to expand new land reserve, which can enhance its competitiveness. We maintain the “accumulate” rating of Agile that the 12-month target price is HK$ 9.60, equivalent to 4.7 times of 2013 PE ratio.

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Strategy

SECTOR/STRATEGY REPORTS: - Sector Reports: Bank, 5 Jun / Telecommunications, 5 Jun / Commodities, 29 May / Offshore & Marine, 27 May - Country Strategy: Thai, 8 May / China & HK, 24 Apr / S’pore, 18 Jun - Global Macro, Asset Strategy: ASEAN, 8 May / 12 Apr, Update / US, 20 Mar / 4 Mar, Update

Morning Commentary - STI: -0.28% to 3124.5 - SET: -0.12% to 1400.5 - JCI: -2.48% to 4515.4 - KLCI: -0.37% to 1755.9 - HSCEI: -0.30% to 9237.5 - Hang Seng: -0.59% to 20263.3 - Nikkei 225: +1.66% to 13230.1 - ASX200: -0.72% to 3236.6 - India NIFTY: +0.21% to 5667.7 - S&P500: +0.27% to 1592.4 MARKET OUTLOOK: By Ng Weiwen, Macro Analyst Is cash king? Notwithstanding a seemingly dead cat bounce (in US markets) last Fri, equities and rates sold off (albeit at a slower pace last Fri) as deleveraging ensued after a hawkish shift in the Fed's stance last week. Markets are in a correction mode. We view the recent sell-off in markets as largely technical amid a still-healthy uptrend. Commodities -as an asset class- might be confronted with possibly structural headwinds. With possibly the renaissance of US manufacturing at the expense of China factories (which are weighed down by higher wage costs), the use of commodities in economic production will be used more efficiently and less intensively. Thus, even continued monetary easing might not be able to excite commodities bulls. Our UW for gold since Oct12 and it has proved to be a prescient call. Gold tumbled to multi-year lows last week. Notwithstanding a brief respite, we reckon the downward bias for gold is likely to continue to persist on account of the following: a) stronger USD on improved US trade balance (shale gas boom) as well as gradual pick up in economy b) receding tail risks on the EZ front (as reflected by the decline in 10yr yields of peripheral EZ sovereigns) c) awkward trend of disinflation worldwide (US, China and EZ) notwithstanding the synchronised monetary easing by major central banks. Subdued inflation diminish the importance of gold as a hedge against rising inflation Next key support for gold is pegged at 1157 (Jul 2010 low). No change to our broad asset allocation of OW equities, MW fixed income, MW commodities and UW gold. For the Nikkei, we might be at the tail end of the corrective wave and the index is forming a tentative support at 13k level. For the STI, the bulls have to defend 3100 level which was pierced thru’ on Fri. Downward bias will likely persist as long as it does not decisively clear above the 3230 resistance level. Near term support pegged at 3100. But amid the seemingly doom and gloom, there are still opportunities for bargain hunting, esp for our top picks (SGX , Keppel Corp, Pan United).

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Singapore We initiate coverage on Amara Holdings with a “BUY”. Our analyst is positive

due to stable recurring earnings with strong visible growth profile. We expect the STI to consolidate at current levels, with key near term support

at 3,100 levels. Top picks for the year are Pan United (Buy, TP: S$1.21), SGX (Accumulate,

TP: S$8.00) & Keppel Corp (Accumulate, TP: S$12.34). Pan United, a dominant supplier to the construction industry in Singapore, is expected to ride on the construction boom. We also note a near term catalyst from potential increase in PUC’s stake in the profitable Changshu Xinghua Port. SGX should post higher revenue from higher Securities and Derivatives trading volumes. Keppel Corp’s YTD order wins are high, while margins are expected to be attractive due to its better track record compared to global peers.

Close +/- % +/-FSSTI 3124.45 -8.81 -0.28P/E (x) 12.83P/Bv (x) 1.40

3.18Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

3500

3700

6/25 9/25 12/25 3/25

Source: Bloomberg

Thailand Thai stocks opened deep in the red, down nearly 50 points last Fri on persistent

concerns over the Federal Reserve’s plan to dial back on QE before the SET index recouped some of earlier losses to finish the session down a mere 1.69 points, helped by buying in energy counters.

The choppiness is likely to continue in the Thai stock market amid the extremely high level of intraday swings. Investors should keep an eye on portfolio rebalancing by foreign investors in the wake of the US Federal Reserve’s QE tapering plan. Currency weakness would be one of the catalysts for continued foreign sell-off after the strengthening of the US dollar put downward pressure on the Thai baht to above 31.1 to the dollar.

Institutional buying should however lend some support to the market due to end-of-quarter ritual of window dressing. Statistics over the past decade showed 70%-80% prevalence of window dressing rally in Thai stocks during the last five trading days of 2Q with average market gains of between 1.3-2.0%.

In current market conditions, we believe selective trading with the ‘sell the rallies and buy the dips’ strategy makes sense for the Thai stock market. Equity exposure should be capped at 25% of the short-term portfolio.

Resistance for the SET index is seen at 1440-1468 and support at 1380-1350 today.

Close +/- % +/-SET INDEX 1400.50 -1.69 -0.12P/E (x) 15.92P/Bv (x) 2.23

3.09Dividend Yield

STOCK EXCH OF THAI INDEX

900

1000

1100

1200

1300

1400

1500

1600

1700

6/25 9/25 12/25 3/25

Source: Bloomberg

Indonesia

The Jakarta Composite Index (JCI) tumbled Friday (21/06), extended losses to the third consecutive day as stock markets in Asia continued falling after the US Federal Reserve's plan to wind down bond purchases hit investors' confidence. The JCI lost 114.622 points, or 2.48%, to 4,515.372. The decline on Friday included all 9 major industry groups, with infrastructure sector fared worst with 3.78%-plunge, basic industry sector also fell 3.78%, and miscellaneous industry sector shed 3.14%. The LQ45 index slid 24.341 points, or 3.20%, to close at 736.263. On Friday, Indonesian government officially announced the increase in subsidized fuel prices, as expected. Price of subsidized gasoline rose 44% to IDR 6,500 a liter, and subsidized diesel fuel rose 22% to IDR 5,500. Bank Indonesia said it expects inflation to reach 2.2% - 2.4% (MoM), above the historical range of between 0.7% - 0.9%, after the administration raised subsidized fuel prices. Year-on-year, inflation is seen to reach 7.67% to 7.87%. 200 shares fell and 70 shares rose Friday on the Indonesia Stock Exchange, where regular market volume reached 4.88 billion shares worth IDR 8.38 trillion. Foreign investors' transactions netted in a net sale of IDR 2.25 trillion.

The Jakarta Composite Index (JCI) looked set for a moderate rebound today, after a steep decline last Friday (22/06) that brought the index to near 4,500. Modest gains on US markets on Friday and rally in Japan this morning may spur positive momentum for Indonesian market today. But gains may be capped by concerns about looming inflationary pressure after the government's plan to raise subsidized fuel price became official since the weekend. We expect the JCI to rise moderately, with range of movement between 4,429 and 4,605.

Close +/- % +/-JCI Index 4515.37 -114.62 -2.48P/E (x) 17.45P/Bv (x) 2.74

2.17Dividend Yield

JAKARTA COMPOSITE INDEX

3400

3900

4400

4900

5400

6/25 9/25 12/25 3/25

Source: Bloomberg

Regional Market Focus

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Sri Lanka The Colombo Bourse depicted a negative closure during the day whilst the

indices took a sharp dip dragging the ASPI and the S&P SL 20 by 56.17 and 25.57 points respectively, which was mainly triggered by the sluggish participation of the investors and continues selling. The daily turnover for the day was LKR 565Mn; this indicated a drop of 83.74% compared to the previous trading day. Distilleries Company PLC (DIST) stood out as the top subscriber for the day providing LKR 93.2Mn, accounting to 16.5% of the daily turnover; the counter reached an intraday high of LKR 193.00/- and a low of LKR 190.00/-, while closing the day at LKR 191.90/- . Additionally, off board activity was witnessed on DIST (LKR 60.2Mn) where 312K shares were blocked at price LKR 193/-. Under the sectorial summary, Bank Finance & Insurance (BFI) sector stood on top, providing LKR 312.38Mn and Beverage Food & Tobacco (BFT) sector emerged second, contributing LKR 97.31Mn. During the day, a total of 18.13Mn shares changed hands resulting in a decrease of 21.47% against the previous trading day.

Close +/- % +/-CSEALL Index 6155.27 -56.17 -0.90P/E (x) 12.37P/Bv (x) 1.71

2.55

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

5000

5500

6000

6500

7000

6/25 9/25 12/25 3/25

Source: Bloomberg

Australia The Australian share market on Friday suffered a second straight day of losses.

The benchmark S&P/ASX200 index was down 19.6 points or 0.41 per cent to 4,738.8 points.

Today (24/06/13), the local bourse looks set to open lower following a mixed performance on Wall Street as the fallout continues from the US Federal Reserve's signalling it could soon start winding back its stimulus measures. The SFE 200 is pointing downwards 51 points or 1.08 per cent to 4,637.

No major economic news is expected on Monday. In equities news, Metcash is due to post full year results.

Close +/- % +/-

S&P/ASX 200 INDEX 4738.80 -19.59 -0.41P/E (x) 19.22P/Bv (x) 1.86

6.32

STANDARD & POORS/ ASX 200 INDEX

Dividend Yield

3800

4000

4200

4400

4600

4800

5000

5200

5400

6/25 9/25 12/25 3/25

Source: Bloomberg

Hong Kong

HSI and CEI dropped 119 points and 27 points to 20,263 and 9,237 respectively. Volume increased to HKD97.17 billion.

Galaxy Entertainment (27.HK), after breaking listed record last week, dropped 8.38% last Friday to HKD39.35. China Coal (1898.HK) rebounded 4.6% to HKD4.55 after reaching 4-year low.

HSI and CEI declined 3.54% and 4.43% last week respectively, mainly due to concern Fed will reduce stimulus and HSBC China PMI trailed estimates.

Technically, 14-RSI is now at 22 low level, we expect a technical rebound. The support and resistance level will be at 20,000 and 20,800 respectively.

Close +/- % +/-HSI INDEX 20263.31 -119.56 -0.59P/E (x) 9.37P/Bv (x) 1.29

3.68Dividend Yield

HANG SENG INDEX

17000

18000

19000

20000

21000

22000

23000

24000

25000

6/25 9/25 12/25 3/25

Source: Bloomberg

Regional Market Focus

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Market News

US The dollar rose to a two-week high versus the yen before data that may add to the case for the Federal Reserve to pare back bond

purchases. The U.S. currency strengthened before reports due tomorrow that will probably show orders for durable goods grew and house prices continued to recover. Fed Bank of Dallas President Richard Fisher will speak on monetary policy in London today. The yen slumped against most of its 16 major peers as Japan’s ruling coalition won a majority in Tokyo elections, signaling support for Prime Minister Shinzo Abe’s quest to end deflation. The Dollar Index, which Intercontinental Exchange Inc. uses to monitor the greenback against the currencies of six U.S. trade partners, rose 0.3 percent to 82.531 and reached 82.591 earlier, the most since June 6. (Source: Bloomberg)

Major economies risk ballooning debt loads unless their growth can keep pace with increases in borrowing costs as spending on the

elderly rises, according to the Bank for International Settlements. Japan’s public debt would swell to 600 percent of gross domestic product by 2050 on a 2 percentage-point increase in funding costs, should its age-related government spending continue unchecked, the Basel-based BIS said in its 83rd annual report. In the U.S., the debt-to-GDP ratio would almost double to 200 percent under the same circumstances, it said. Treasury 10-year note yields rose past 2.5 percent for the first time in almost two years on June 21, having climbed from a record low of 1.379 percent set on July 25, 2012. The average yield to maturity on the more-than-20,000 securities in the Bank of America Merrill Lynch Global Broad Market Index rose to 2.03 percent on June 20, the highest since April 26, 2012. (Source: Bloomberg)

Singapore THE strata office market could see prices rise by 5 to 8 per cent as the buying momentum continues into this year. Transaction volumes

crossed a third of last year's levels in the first five months of 2013, in what is shaping up to be a year when sales volumes are unlikely to match 2012's peak, said CBRE. Last year, sales of new and resale strata-titled offices reached an all-time high of $2.29 billion, 81 per cent more than the $1.27 billion in 2011. The numbers of deals last year - 1,059 - were more than double the 508 in 2011. Even while volumes thin, prices are likely to see modest growth. (Source: BT Online)

Thailand The Stock Exchange of Thailand said the establishment of matching funds to shore up stock market prices is not necessary for now as

foreign capital outflows are not as worse as big fund exodus during the US sub-prime crisis and trading volumes remain high, adding that 20%-25% market correction is normal and Thailand has not been in economic crisis. (Source: Post Today)

The Board of Investment (BOI) and Bangkok Bank see economic slowdown in 2H13 as economic woes in Europe and China would hurt export revenue. The BOI said that Chinese automakers have shifted investments to Thailand to cash in on the upcoming launch of ASEAN Economic Community (AEC) while Bangkok Bank expects Thailand’s economy to grow by a mere 4% this year. (Source: Matichon)

Supachai Panitchpakdi, the secretary-general of the UN Conference on Trade and Development said he disagreed with the Bank of Thailand’s interest rate cut, citing that Thailand’s interest rates are comparatively low relative to its regional peers over the next 1-2 years. Meanwhile the World Bank sees an upward trend of inflation in Thailand as a result of higher oil prices and the baht’s weakness, raising the risk of bubbles. (Source: Krungthep Turakij)

Hong Kong China’s central bank said it may adjust monetary policy as needed, suggesting officials are more open to loosening policies as a cash

squeeze risks exacerbating an economic slowdown. The People’s Bank of China said the nation should “appropriately fine-tune” its policies, according to a statement yesterday that summarized the monetary policy committee’s second-quarter meeting in Beijing. It was the first time since September that the panel, led by Governor Zhou Xiaochuan, has used the “fine-tune” phrase. The comments were released following an easing of the cash crunch on June 21 after a gauge of interbank funding availability rose to the highest since at least 2003. Slowing growth in the world’s second-largest economy, a crackdown on illegal capital inflows and efforts to rein in shadow banking have contributed to increased borrowing costs. (Source: Bloomberg)

To offset falling PC sales and reduce its reliance on ThinkPad notebooks, Lenovo Group Ltd. (992) is adding a gaming service that the computer maker says can help it overtake Samsung Electronics Co. in smartphones in China. Lenovo Game World will include social-networking features, software reviews and gameplay tips when it starts in the third quarter, offering popular titles like “Fruit Ninja” for devices such as the computer maker’s Ideaphone K900 that run Google Inc. (GOOG)’s Android operating system. Software and services underpin Chief Executive Officer Yang Yuanqing’s push to sell more handsets as demand for personal computers slides. While Lenovo’s app store has logged more than 1 billion downloads since it opened in 2010, the company is looking to Game World for an edge in the biggest market for handsets, where mobile-game sales of $1.6 billion this year will rise about 50 percent annually for the next three years, researcher Analysys International predicts. Unlike the U.S., where Google and Amazon.com Inc. dominate sales of Android applications, China has hundreds of companies offering mobile software. Lenovo wants to set itself apart from that crowd with features like those available on Apple Inc. (AAPL)’s Game Center, such as global leader boards that let players see how they compare to the world’s best. (Source: Bloomberg)

The Shanghai Composite Index (SHCOMP) will jump about 12 percent in coming months as its June slump exhausts sellers, said Tom DeMark, the creator of indicators to show turning points in securities. The benchmark index for Chinese equities will climb to 2,323 after

Regional Market Focus

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producing a buy signal June 21 on the Combo chart, designed to identify market tops and bottoms, said DeMark, who has spent more than 40 years developing market-timing indicators. The Shanghai index has fallen 9.9 percent in June, poised for the worst month since August 2009, while the Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. lost 6.5 percent. Chinese stocks have plunged this month amid concern about a cash crunch in the nation’s interbank market, and as a preliminary reading of a manufacturing index showed output contraction worsened. The Hang Seng China Enterprises Index (HSCEI) of shares traded inHong Kong plummeted 13 percent to a nine-month low. American depositary receipts of online retailer Vipshop Holdings Ltd. led declines on the ADR gauge last week while mobile-chip maker Spreadtrum Communications Ltd. (SPRD) surged. (Source: Bloomberg)

Indonesia The finance minister sees stronger Rupiah and trade balance after the fuel-price increase this month, as imports of oil would fall. The

government estimates that energy subsidies would have ballooned to USD 30 billion this year if left unchanged, eating up funds that could instead be spent on benefits for the poor or infrastructure projects. The government intends to raise subsidized gasoline prices to 6,500 rupiah (USD 0.65) a liter and subsidized diesel to 5,500 rupiah, both from 4,500 rupiah. That compares with 9,800 rupiah a liter outside Indonesia. (Source: Bloomberg)

Indonesia's Investment Coordinating Board, “BKPM”, said the increase in subsidized fuel price would not prevent the country from achieving its investment target of IDR 390.3 trillion this year. The investment board also said that it is optimistic about achieving the second quarter target of IDR 97.5 trillion. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka rupee was quoted below 129.00 to the US dollar in the spot market Friday while bond yields were also elevated. The rupee

opened at 128.40/60 levels against the US dollar and weakened in mid-day trade. There were higher levels of forward covering in the market including by foreign investors in rupee bonds. Sri Lanka's bond yields have also edged up. A popular 5-year bond maturing on April 01, 2018 was quoted around 11.40/45 percent Friday up from 11.30/35 a day earlier. Last week the bond was trading at 11.10/15 levels. An 8-year bond maturing on May 01, 2021 was quoted at 11.75/85 percent, from around 11.50 levels on Monday, Foreign investors have cut their positions in many emerging markets and currencies have weakened. Fridays selling came mostly from domestic investors. Sri Lanka's rupee is loosely pegged to the US dollar and operates with less intervention than in the past. Despite having policy rate much higher than the US dollar, the rupee has tended to weaken because the central bank buys dollars, especially loans to the state, to generate liquidity. (Source: lankabusinessonline.com)

Australia Fortescue Metals Group awarded Leighton Holdings a $1.3 billion mining services contract for its Kings iron-ore project in Western

Australia's Pilbara region. The deal follows Leighton's appointment last year on the nearby Firetail mine, which started operations last month and will produce 20 million metric tonnes of iron ore a year at its peak. It takes the total value of work for Leighton Contractors, the contracting arm of Leighton, at Fortescue's Solomon Hub site to $2.8 billion. (Source: The Australian)

Rio Tinto said it had stopped looking to sell its diamonds division, after failing to attract a buyer during a year-long review of the business. The mining company said in a statement that it would retain the unit in the best interests of shareholders. Early last year, it said was looking for ways to offload the diamond business because of its limited contribution to overall revenue and earnings. (Source: The Australian)

Wholesale grocery retailer Metcash said its annual profit more than doubled after restructure and impairment charges weighed on the

previous year's result. Net profit for the year to June 30 of $206 million compared to a $90 million in the previous year. (Source: The Australian)

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82.55 +0.28% 278.08 -0.53%

103.52 -2.63% 2.527 -0.00%

1,296.40 +0.19% 14,799.40 +0.28%

492.12 -0.99% MSCI SEA 833.59 -0.86%

2,549.48 -1.43% 53.1

Source: Bloomberg

MSCI Asia x-Japan

JPM Global Composite PMI SA

ThomReuters/JefferiesCRB

DJI

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

Euro Stoxx 50

Dollar Index

Gold (US$/Oz)

1.20

1.40

1.60

1.80

2.00

2.20

2.40

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

700

750

800

850

900

950

1,000

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

11,000

12,000

13,000

14,000

15,000

16,000

Jun

-12

Jul-1

2

Au

g-

12

Se

p-

12

Oct-1

2

Nov-

12

Dec-

12

Jan

-13

Feb-

13

Mar-

13

Ap

r-13

May-

13

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

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

48

49

50

51

52

53

54

55

56

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

1,200

1,300

1,400

1,500

1,600

1,700

1,800

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

78

80

82

84

Ju

n-1

2

Ju

l-12

Au

g-1

2

Se

p-1

2

Oct-1

2

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

260

280

300

320

340

Ju

n-1

2

Ju

l-12

Au

g-1

2

Se

p-1

2

Oct-1

2

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

90

100

110

120

130

Ju

n-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Ja

n-1

3

Feb

-13

Ma

r-13

Apr-1

3

Ma

y-1

3

440

460

480

500

520

540

560

580

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

May-1

3

Regional Market Focus

24 June 2013

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Valuations of Major Regional Markets

14.1 1.40

12.8 2.23

9.6 1.29

14.5 2.74

14.2 1.84

Source: Bloomberg

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

Straits Times Index, Forward P/E (X)

Hang Seng Index, Forward P/E (X)

Straits Times Index, P/B (X)

Stock Exchange of Thailand, Forward P/E (X) Stock Exchange of Thailand, P/B (X)

Jakarta Stock Exchange Composite Index,

Hang Seng Index, P/B (X)

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

10

12

14

16

18

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

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

1.0

1.5

2.0

2.5

3.0

Dec-0

9

Ma

r-10

Ju

n-1

0

Se

p-1

0

Dec-1

0

Ma

r-11

Ju

n-1

1

Se

p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

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

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

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p-1

1

Dec-1

1

Ma

r-12

Ju

n-1

2

Se

p-1

2

Dec-1

2

Ma

r-13

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

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

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

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

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

Regional Market Focus

24 June 2013

9 of 13

Source: Bloomberg

World Index

JCI -2.48% 4,515.37

HSI -0.59% 20,263.31

KLCI -0.37% 1,755.85

NIKKEI 1.66% 13,230.13

KOSPI -0.41% 1,815.41

SET -0.12% 1,400.50

SHCOMP -0.50% 2,073.10

SENSEX 0.29% 18,774.24

ASX -0.41% 4,738.80

FTSE 100 -0.70% 6,116.17

DOW 0.28% 14,799.40

S&P 500 0.27% 1,592.43

NASDAQ -0.22% 3,357.25 COLOMBO -0.90% 6,155.27

STI -0.28% 3,124.45

PHILLIP RESEARCH STOPHILLIP RESEARCH STOPHILLIP RESEARCH STOPHILLIP RESEARCH STOCK SELECTION SYSTEMSCK SELECTION SYSTEMSCK SELECTION SYSTEMSCK SELECTION SYSTEMS

We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors like (but not limited to) a stock's risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final recommendation

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© 2013 Phillip Securities (Hong Kong) Limited

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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