20091113-daily News

DAILY

MALAYSIA

13 November 2009 CIMB Research Report

Daybreak

Terence Wong CFA +60(3) 20849689 – [email protected]

What’s on the table Malayan Banking 1QFY10 above – Making a whole lot of cents Index Chart FBMKLCI Index 1300 1250 1200 1150 1100 1050 1000 950 900 850 800 Nov-08

Feb-09

Source: Bloomberg

May-09

Aug-09

Nov-09

Maybank’s 1QFY6/10 net profit jumped 54.1% yoy to RM881.8m, accounting for 28% of our full-year forecast and 31% of consensus. The main source of the variance was a strong topline which benefited from robust growth of non-interest income and margin expansion. However, the group recorded 4% yoy loan growth in Sep 09, slower than the 13% yoy growth recorded three months ago. This was mainly due to a 1.4% slippage of overseas loans. Net NPL ratio improved slightly to 1.6% in Sep 09 from 1.64% in Jun 09. We are raising FY10-12 net earnings forecasts by 2-8% for lower NPL ratios and higher noninterest income. This increases our target price from RM7.55 to RM7.70 (pegged to 5% premium over the DDM value). Despite the positive earnings outlook, we remain NEUTRAL on Maybank as we believe the positives are already in the price given its aboveaverage CY10 P/E. We prefer Public Bank for a play on big-cap Malaysian banks. Quick takes – Axiata update – A short Dialog Quick takes – Media Prima update – Sweetening the NSTP deal Quick takes – NSTP update – A sweeter deal and bumper dividends

News of the Day – New fuel subsidy management system will be implemented in May-10 – DiGi.Com believes Internet division will act as a driver of growth in 2010-2011 – US initial jobless claims fell by 12,000 to 502,000 Nov-7 week, lowest level since Jan-3

MARKET INDICES FBMKLCI FBM100 Shanghai Dow Nasdaq FTSE-100 Nikkei 225 Hang Seng FSSTI

Close 1,271.75 8,283.08 3,172.95 10,197.47 2,149.02 5,276.50 9,804.49 22,397.57 2,726.24

KLCI STATISTICS % Change 0.1 0.2 (0.1) (0.9) (0.8) 0.2 (0.7) (1.0) (0.5)

Ytd (%Chg) 45.1 47.5 74.3 16.2 36.3 19.0 10.7 55.7 54.8

TOP ACTIVES HUBLINE-WA SINARIA HUBLINE XDL TALAM SCOMI AFFIN-WC SERNKOU

RM 0.130 0.510 0.245 0.580 0.110 0.530 0.155 0.365

KLCI 52-week range Total turnover (m units) Total value (RM m) 3-mth avg trading value (RM m) Number of gainers Number of losers Number of unchanged KLCI futures Nov 09 KLCI futures Dec 09

835-1280 991.9 1356.5 1161.3 287 379 244 1268.5 (-0.55%) 1269.5 (-0.47%)

ECONOMIC STATISTICS % change 18.2 (8.9) 6.5 (7.9) 4.8 (8.6) 14.8 4.3

Turnover (m) 48.5 42.1 25.9 25.4 24.7 20.3 18.0 17.0

US$/Euro RM/US$ (Spot) RM/US$ (12-mth NDF) OPR (%) BLR (%, Maybank) GOLD ( US$/oz) WTI crude oil US spot (US$/barrel) CPO spot price (RM/tonne)

Please read carefully the important disclosures at the end of this publication.

Close 1.4850 3.3810 3.3930 2.00 5.55 1,103.80 76.94 2,180

% Chg (0.91) (0.16) 0.25 0.00 0.00 (1.22) (2.95) 1.02

Global economic news US Treasury Secretary Timothy Geithner said Asia-Pacific nations need “marketoriented” currencies that are in line with their economic fundamentals to encourage new sources of growth. “Market-oriented exchange rates in line with economic fundamentals will be essential in assuring the resource and sectoral shifts to match and foster the new patterns of demand,” said Geithner. (Bloomberg)

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The US budget deficit widened in October from a year earlier, reaching a record for that month, as rising unemployment cut revenue at the start of the first full fiscal year under President Barack Obama.

• The excess of spending over revenue widened to US$176.4bn last month, compared with a deficit of US$155.5bn in the same month a year earlier. It was a record 13th consecutive shortfall and the fifth-largest monthly gap on record. • Economists surveyed forecast a deficit of US$165bn in October. The non-partisan Congressional Budget Office predicted a shortfall of US$175bn for the month. During the fiscal year that ended Sept. 30, the Treasury reported a record deficit of US$1.4tr. (Bloomberg)

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US initial jobless claims fell by 12,000 to 502,000 in the November 7 week. This is the lowest level since the Jan. 3 week, when 488,000 initial claims were filed. A consensus estimate anticipated 510,000 new claims. The 4-week moving average of initial claims was 519,750, down 4,500 from the previous week's revised average of 524,250. Continuing claims for jobless benefits fell by 139,000 to 5.63m in the week ended Oct. 31. (CNN Money)

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US foreclosure filings were down 3% in October, the third consecutive month-over-month dip, according to RealtyTrac, the online seller of foreclosed homes. To be sure, foreclosure rates are still elevated from a year ago: They're up 18% compared with October 2008. But the month-over-month decrease followed a 4% drop in filings during September and a 1% fall in August. (CNN Money)

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US mortgage applications to purchase homes plunged last week to the lowest level in almost nine years as Americans waited for the outcome of deliberations to extend a government tax credit. The Mortgage Bankers Association’s index of applications to buy a house dropped 12% in the week ended Nov. 6 to 220.9, the lowest level since Dec 2000. The group’s refinancing gauge rose 11% as interest rates decreased, pushing the overall index up 3.2%. (Bloomberg)

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The Federal Reserve released a new rule to prohibit banks from automatically enrolling customers in overdraft protection programs, which charge fees when consumers spend more than they have. "The final overdraft rules represent an important step forward in consumer protection," Fed Chairman Ben Bernanke said. "Both new and existing account holders will be able to make informed decisions about whether to sign up for an overdraft service." Currently, more than 75% of banks automatically sign customers up for overdraft programs. (CNN Money)

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Philadelphia Federal Reserve Bank President Charles Plosser said he sees no nearterm inflation threat, but warned the large volume of excess reserves created by the Fed as a result of its quantitative easing policy could become inflationary if those reserves start flowing rapidly into the economy. In that event, Plosser said the Fed would need to act "pretty quickly" to head off an inflation problem, either by raising interest rates or by draining reserves. (Xinhua)

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US Treasury Secretary Timothy Geithner said that inflation rates are still easing in the world's major economies and so fiscal stimulus policies are likely to remain in place for a while. Geithner said inflation remains low in major economies and is still "still moderating. (Xinhua)

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Chinese Premier Wen Jiabao said the world faces a gradual and uneven recovery from the worst financial crisis since the Great Depression. “The global economy is starting to recover but a total recovery will be a slow and bumpy process.”

• Risks include trade protectionism, the sustainability of fiscal stimulus measures, and “price uncertainties,” China’s central bank said.

• China will maintain a moderately loose monetary policy and a “proactive” fiscal stance and continue to fine-tune its 4tr yuan (US$586bn) stimulus plan, Wen said. He also reiterated that policy makers need to manage inflation expectations. (Bloomberg)

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Japan’s financial surveillance agency said it is investigating funds that bet on art and racehorses as regulators broaden their scope to protect individual as well as institutional investors. The Securities and Exchange Surveillance Commission is probing the activities of nine funds and brokers that sell so- called low-liquidity products to individuals. (Bloomberg)

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Japan’s producer prices fell for a tenth month in October, underscoring the risk that deflation may undermine the economic recovery. The costs companies pay for energy and unfinished goods tumbled 6.7% yoy in October after sliding a revised 8% in September. (Bloomberg)

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South Korea’s central bank kept its benchmark interest rate at a record low of 2% for a ninth month. Bank of Korea said it “will maintain an accommodative policy stance for the time being with an emphasis on sustaining the recovery of economic activity.” (Bloomberg)

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India’s industrial production grew more than economists forecast in September. Output at factories, utilities and mines rose 9.1% yoy after gaining a revised 10.96% in August. The latest increase was more than the median 7% forecast. (Bloomberg)

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Thailand’s consumer confidence fell for the first time in five months, dropping to 68 in October from 68.4 the previous month, the University of the Thai Chamber of Commerce said. “Consumers still feel that the economic recovery isn’t sustained,” Thanavath Phonvichai, an economist at the university, said. “Rising oil prices and the court case are among key negative factors. If the situation doesn’t improve, consumer confidence may fall further.” (Bloomberg)

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Indonesia’s economy is expected to expand 4.3% this year and exports may decline less than previously expected, Trade Minister Mari Pangestu said. (Bloomberg)

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The Asia-Pacific Economic Cooperation's (Apec) economies ministers painted an upbeat view on the world economy but in the same breath cautioned of its lingering frailness in its recovery. In a joint statement, the 21st Apec Ministerial Meeting (AMM) said the global economic situation has eased considerably but the recovery still remained fragile.

• The Apec ministers said that a pick-up in trade and investment was contributing to the

recent rebound in global economic activity, but evidence of an increasing use of trade remedies indicated that risks relating to protectionism and recovery remained. • The AMM said the world's growth profile over the next few quarters was also likely to be uneven. "Unemployment remains unacceptably high in many of Apec economies," the statement said. • The International Monetary Fund (IMF) has estimated that the world gross domestic product (GDP) will rise by nearly 3% in 2010, and that all Apec economies will shift to positive GDP growth in 2010. (Bernama)

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Indonesia expects to achieve economic growth of more than 7% by 2014, said Indonesian President Susilo Bambang Yudhoyono. He said economic growth of 4.3% is expected in 2009, which is much lower than before the economic crisis. To achieve the [ 3 ]

growth, a five-year action plan or blueprint had been drafted. The action plan is based on strengthening infrastructure such as roads, ports and power plants throughout Indonesia, Susilo said. (Bernama)

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Australia’s resources hiring boom underscores central bank Governor Glenn Stevens’s concern that the emergence of a “two-speed” economy may force policy makers to impose interest-rate gains that hurt slower-growing regions. Unemployment fell last month in Western Australia and Queensland, states rich in iron ore, coal and natural gas, while the jobless rate in New South Wales, the most populous state, climbed to 6.1%from 5.5%. (Bloomberg)

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The European Central Bank said professional forecasters have revised up their expectations for economic growth in the euro region. Forecasters surveyed by the central bank expect growth of 1%in 2010, up from the 0.3% predicted three months ago. The economy will shrink 3.9% this year, less than the 4.5% contraction forecast in August. (Bloomberg)

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European industrial output rose for a fifth month in September as the global recovery bolstered orders for goods ranging from steel to machinery. Production in the economy of the 16 nations using the euro increased 0.3% from August, when it gained 1.2%. Economists forecast an increase of 0.5%. From a year earlier, output fell 12.9%. (Bloomberg)

■ Asia-Pacific finance ministers and dodged a discussion on export. China has “played a Secretary Timothy Geithner yesterday. (Financial Daily)

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praised China’s part in reviving global economic growth whether the yuan’s weakness is damaging its neighbours’ major role in helping contribute to recovery” US Treasury said after meeting with his counterparts in Singapore

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South Korea's central bank maintains its benchmark interest rate at a record low for a ninth month, seeking to strengthen the economy's recovery before increasing the borrowing costs. Governor Lee Seong Tae left the seven-day repurchase rate at 2% in Seoul and the Bank of Korea said it "will maintain an accomodative policy stance for the time being with an emphasis on sustaining the recovery of the economic activity". (Financial Daily)

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Malaysian economic news About 65.9% or 54 of the projects under the East Coast Economic Region (ECER) have taken off the ground, said Deputy Minister in the Prime Minister's Department Datuk S.K Devamany. He said until Oct 1, the government had disbursed RM480m of the RM1.5bn allocation to ECER Development Council (ECERDC), which had been entrusted with the development of 82 projects. Devamany said they included high-impact projects such as the Kuala Krai (Kelantan)-Simpang Pelangai (Pahang) road widening project, the Kertih Polymer Industry Cluster and several agropolitan farms. • The Kertih Polymer Industry Cluster, which will be the first integrated plastic park in the country, is expected to attract RM2bn in investment and create 8,000 jobs by 2020, he said. (Bernama)

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The new fuel subsidy management system will be implemented in May-10, Deputy Finance Minister Datuk Chor Chee Heung said. He said the system's mechanism would be announced after a study on the subsidy distribution and target groups had been identified.

• In respect of the fuel subsidy borne by the government until September, Chor said it amounted RM3.54bn.

• "The fuel subsidy for 2010 will reach RM10bn if the present system is retained," he added. (Bernama)

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The government has taken over and completed 12 of 148 abandoned housing projects nationwide since 1990, the Dewan Rakyat was told. Deputy Housing and Local Government Minister Datuk Seri Lajim Ukin said of the total, 49 projects were being restored, while 87 others still abandoned.

• "We are in the midst of identifying and save more restorable projects. Yet, the RM200m allocated to the ministry is definitely insufficient to restore all 87 abandoned projects," he said. • Lajim said among the main criteria to be considered for the government to take over the project was that it should be almost 90 to 95% completed or had been abandoned for over 10 years. (Bernama)

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The Higher Education Ministry will focus more on intellectual development, rather than infrastructure development, in institutions of higher learning in the 10th Malaysia Plan (10MP). Minister Datuk Seri Mohamed Khaled Nordin said the move was in line with the government's aspiration to make Malaysia not only as a higher education hub, but also a major innovation centre in the region. (Bernama)

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Perlis could become the owner of a man-made island should it receive the approval of the government to build the island off the shores of the state, between Kuala Sanglang and Kuala Sungai Padang. The man-made island, touted as a potential driver of economy in the region, is expected to be built using a Korean technology.

• The project, worth more than RM20bn, would become a new catalyst for economic growth as its location was not too far from Thailand. The island is also expected to be developed as a container port of international standing. (Bernama)

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Malaysia needs to compete with countries with high technological capabilities to secure future growth and escape from a middle-income trap, says the Raja Muda of Perak, Raja Dr Nazrin Shah. He said this could be done only through innovation and technological breakthroughs to compete with countries like South Korea, Japan and even China.

• "The government is all set to provide the necessary assistance. The responsibility rests

with business entities to forge their paths to becoming more competitive in the global marketplace," he said. • "Today, Malaysia finds itself caught in a middle-income trap, squeezed between low-cost labour-intensive economies and technology-driven knowledge-intensive economies. Malaysia is fast losing its comparative advantage in the export of labour-intensive manufactured products and simply importing cheaper labour to feed this sector is doing nothing to propel the economy up the value chain," he said. (Bernama)

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Trade and investment ties between Malaysia and South Korea have room for expansion, says Deputy Foreign Minister Datuk Lee Chee Leong. Over the last 10 years, trade between the two countries has expanded by an average of over 10% annually, exceeding RM50bn in 2008. Based on the current growth trend, by 2015, trade between Malaysia and South Korea is poised to balloon to RM100bn.

• “The implementation of the Association of South East Asia Nations (Asean)-South Korea Free Trade Area, which will come into effect on January 1 2010, is expected to significantly help deepen the economic linkages”, Lee said. (NST)

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Malaysia may raise its economic growth forecast for 2010 as it expects more investments from the private sector, Second Finance Minister Datuk Seri Ahmad Husni Hanadziah says. Currently, the government expects gross domestic product (GDP) to expand by 2 to 3% in 2010 after contracting 3% in 2009. • The optimism stems from higher private sector investments. One example was a government-linked company that wants to develop a massive property project in Kuala Lumpur, Husni said. (NST)

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The government is expected to spend RM 10bn on the oil subsidy next year, said Deputy Finance Minister Datuk Chor Chee Heung. He said the estimate of oil subsidy is based on government’s current oil subsidy mechanism. “I can’t tell you the mechanism as government is still working out the details. It will be implemented in May 2010.” Chor said government could not give a 100% guarantee that only the deserving group would receive the subsidy but it would work to plug weakness. (Financial Daily) [ 5 ]

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Malaysia appears to face a setback in its effort to have a free trade area (FTA) agreement with the US as the world's biggest economy is keen on regional pacts instead. US Trade Representative Ron Kirk told Malaysia's Trade Minister Datuk Mustapa Mohamed that the US favours the Trans-Pacific Partnership (TPP), an existing regional trade deal involving New Zealand, Singapore, Brunei and Chile. The TPP could be expanded and the US, Peru, Australia and Vietnam have indicated interest to join the group. (BT)

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Political news MCA president Datuk Seri Ong Tee Keat should be held responsible for the tussle in the party for the No. 2 post, former party secretary-general Datuk Seri Ong Ka Chuan said. Tee Keat's failure to let the central committee know that he and Datuk Seri Dr Chua Soi Lek had been working on a unity plan had resulted in the committee's poorly informed decision to elect Datuk Seri Liow Tiong Lai as the new deputy president. Ka Chuan said Tee Keat deliberately hid details of the plan from the committee. Ka Chuan said the unity plan seemed good outwardly but he believed there was "something behind it". (NST)

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The High Court will decide on Monday whether a fresh election will be held for the Kota Siputeh state seat in Kedah after assemblyman Datuk Abu Hassan Sarif was absent from two assembly meetings this year. Justice Datuk Alizatul Khair Osman Khairuddin set the date after hearing a length submission by counsel Sulaiman Abdullah for Kedah Speaker Abdul Isa Ismail who is seeking judicial review of the Election Commission's decision to retain Abu Hassan as the assemblyman. (Star)

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Corporate news Heavy rains threaten to reduce November's palm oil output in Malaysia by a quarter as rising moisture levels sap yields and possible floods make tough the transport of the vegetable oil to refineries and ports.

• Estate owners and traders said that production could fall as low as 1.48m tonnes in

November from a month ago as monsoon rains approach southern Malaysia's key palm oil producing state of Johor. • "Production was unusually high last month and it is set to fall very steeply because rains will increase the moisture content of the palm fruits," said a plantation owner in Johor. "And judging by previous years, floods will definitely appear." • Sabah, which accounts for more than a quarter of production, has also experienced heavy rains, and planters say in some areas yields have fallen by 30 to 40% and plantation roads were submerged. (Reuters) This will be positive for CPO price as palm oil supplies will fall short of market expectation. We believe market is currently expecting a good crop in November due to seasonal factor.

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The Sabah 2010 Budget will place emphasis on continuing efforts to improve the wellbeing of the people. Sabah Chief Minister Datuk Seri Musa Aman said that efforts would be made to maintain the momentum in the development agenda, including improving infrastructure and intensifying the programme to eradicate poverty. Musa said the measures to be taken under the budget are expected to make the state more attractive and conducive to local and foreign investors. (Bernama)

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Banks may have decided to raise home financing rates, but prospective homebuyers can still snap up selected properties at cheap rates at least until early next year. "Most banks have revised their rates on average by 50 basis points to BLR minus 1.8%, but they don't want to make a drastic revision and incur the repercussions. So the end-financing for selected projects is still using the old rates of BLR -2.4% to pull in more customers, and clear old stock," Mortgage Broker Sdn Bhd sales director Adrian Un said. (Financial Daily)

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National Water Servies Commission or SPAN is set to give its authorisation to four private concessionaires to continue operating and see out their concession periods. SPAN CEO Datuk Teo Yen Hua said an audit by the commission found the tariff and service charges for distribution and/or treatment of water were generally fair at Southern Water Corporations, Equiventures, Air Utara Indah and Metropolitan Utilities Corporation and these utilities will be authorised by SPAN under the Water Services Industry Act 2006 to see out their concession periods. The Commission however would like to seek lower charges for Taliworks Corp's treatment and distribution concession in Langkawi. (Malaysian Reserve)

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DiGi.Com believes its Internet division will act as a driver of growth in 2010 and 2011, backed by its expansion plan, said its CEO Johan Dennelind. He said the Internet division had to-date contributed at least RM40m to DiGi's run rate, based on the amount of sales from its services. Dennelind said Digi would invest RM300-400m annually in capital expenditure for the 2009-2011 period to grow its 3G network and "ensure enough capacity to support data".

• The company targets 6-7m Internet users from both large-screen PCs and laptops using broadband, and small screen handphones using 3G by year-end. He added that the company aimed to increase its 3G network reach to 50% nationwide by next year and was working on getting its 3G penetration rate to the level of its EDGE network by 2012. (Financial Daily)

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Green Packet will need up to RM500m in capital expenditure in the next 12-18 months to increase its 4G Wimax coverage nationwide to 65%. This does not include a RM155m capex it plans to spend first over the next three quarters to raise the high-speed broadband service coverage to 45%, Green Packet MD C.C. Puan said it had so far invested RM337m to roll out the 4G service. The company's 4G service, known as P1 and run by subsidiary Packet One Networks (Malaysia) Sdn Bhd, now covers 25% of the Peninsular. (BT)

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SP Setia has expanded its Penang landbank with the purchase of two plots of land on the island which are being earmarked for residential development. SP Setia property division (north) general manager S. Rajoo said two parcels of land - one inn Sg Ara and the other in the affluent Jesselton neighbourhood - have been acquired for a total of RM87m. (BT)

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Eastern & Oriental's rights issue of ICSLS has achieved an oversubscription rate of 2.9x above the minimum subscription level. The company said in a statement that RM236m was raised from the exercise. The ICSLS is expected to be listed on Bursa Malaysia on Nov 20. (Starbiz)

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Guoco Group has methodically built up its stake in Bank of East Asia (BEA) in a steady and cost-conscious manner that bankers say is typical of the conglomerate's investment approach. Guoco has snapped up BEA stock throughout the year, adding a chunk of the bank after its share price fell in the wake of last year's financial crisis. It disclosed last week that it had subsequently raised its stake in the lender above 8%, entrenching its position as the second-largest shareholder in the bank.

• Guoco's announcement has prompted speculation of a possible bidding war over control

for BEA that has powered a surge in its share price. The lender has advanced 18.6% so far this week and completed its largest one-day gain in 11 years on Wednesday. • "By reputation, Guoco is a very savvy, very shrewd investor," said a banker familiar with the company. "And they are still sitting on a big pot of cash, so they have the opportunity to make some deals." • A Guoco spokesman reiterated that BEA was one of the group's strategic investments, but declined to say whether the conglomerate would further increase its holding in Hong Kong's biggest locally owned bank. (SCMP)

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The Transport Ministry has agreed to provide Malacca International Airport with several incentives to help spur its usage by air carriers, including considering granting AirAsia rights to six destinations in Indonesia. Chief Minister Datuk Seri Mohd Ali Rustam said the state hoped to see several low-cost carriers establish operations at the airport which would officially be opened by the Prime Minister on Jan 15.

• This includes a RM25 incentive for each incoming passenger for the first 12 months for [ 7 ]

new airlines flying to new routes or increasing flight frequency.

• Another benefit is the RM10-15 incentive for each incoming passenger after the period, depending on the performances of the air carriers.

• Also included is the deferment of landing charges for three years and six-month rent free office space for those setting up operations at the airport. (The Star)

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Galaxy Entertainment will have financing for its Mega Resort project in Macau "locked up" this year, said CFO Robert Drake. The company will explore "as many options as we can" in its efforts to secure financing for the HK$14.1bn RM6.15bn) casino resort, Drake said. He declined to say if the funds will be raised through loans, or sales of shares or bonds. (Bloomberg, Financial Daily)

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Salcon has won a contract worth RM35.8m from Vintage Heights Sdn Bhd to undertake a vacuum sewerage system project. The project at Pantai Sepang Putra in Selangor will be constructed in two phases and is expected to be completed in 39 weeks for phase one and 78 weeks for phase two, Salcon.

• Work will start from the date for site possession on Nov 17. When completed, the vacuum sewerage system will service approximately 2,000 existing households in Pantai Sepang Putra," says CEO How See Hock. Vacuum sewerage system suitable for use in places where there are high water table and poor soil conditions such as at Pantai Sepang Putra, says Salcon. (Bernama)

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Three-A Resources announced yesterday it has completed the private placement of 61.6m new shares at RM0.75/share issue price and the new shares will be listed today, 12 Nov. (BMSB)

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BMSB: Changes in shareholdings 12-Nov-09 EPF EPF Kumpulan Wang Persaraan Koperasi Permodalan Felda Berhad Harris Associates L.P. Newton Investment Management Limited HSBC (Malaysia) Trustee Berhad Datuk Mohd Saufi Bin Abdullah Dato' Low Chin Meng Wei Chuan Beng Chia Kok Chin EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF Amanah Saham Malaysia Aberdeen Asset Management PLC Aberdeen Asset Management PLC Cepatwawasan Titan Chemicals I-Power Dialog

Date 05/11 19/10-21/10 03/11 06/11-09/11 09/11-10/11 09/11 04/11-05/11 04/11 11/11 06/11 11/11 04/11-05/11 02/11-05/11 29/10 29/10-05/11 27/10-30/10 04/11-05/11 04/11-05/11 04/11-05/11 04/11 06/11-09/11 04/11-05/11 02/11-05/11 02/11-03/11 04/11 06/11-09/11 06/11 09/11 12/11 12/11 12/11 12/11

Type of transaction Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Share Buyback Share Buyback Share Buyback Share Buyback

Source: BMSB

[ 9 ]

No of securities Company 1,000,000 KLCC PROPERTY 867,200 MAS BHD 200,000 PLUS EXPRESSWAYS 1,501,200 MY E.G. SERVICES 4,593,900 MEDIA PRIMA 1,000 BURSA MALAYSIA 152,400 GAMUDA BERHAD 100,000 KURNIA ASIA 7,380,000 LCL CORPORATION 600,000 REDTONE 2,200,000 I-POWER 1,460,100 MALAYAN BANKING 2,849,400 CIMB GROUP 150,000 CIMB GROUP 3,967,800 SIME DARBY 4,054,400 PLUS EXPRESSWAYS 1,367,000 ALLIANCE FINANCIAL 4,700,900 IOI CORPORATION 2,067,900 YTL POWER 505,000 GENTING PLANTATIONS 746,200 IGB CORPORATION 981,500 MALAYSIA AIRPORTS 115,900 YTL CORPORATION 79,300 MAS BHD 27,000 EON CAPITAL 145,000 MNRB 140,300 AEON CO 26,200 POS MALAYSIA 610,000 CEPATWAWASAN 139,000 TITAN CHEMICALS 300,000 I-POWER 300,000 DIALOG GROUP

Ave Price (RM)

0.63 0.15

1.03 1.19 0.14 1.31

BMSB: ESOS & others… 13-Nov-09 BINA PURI ASIA FILE REDTONE INTERNATIONAL WCT BERHAD YTL POWER YTL POWER KENCANA YTL LAND M3NERGY FORMOSA DNP HOLDINGS

No Of New Shares 115,900 101,050 248,200 100,244 206,300 400,188 125,000 1,378,438 180,000 983,000 104,500

Date of Listing 13-Nov-09 13-Nov-09 13-Nov-09 13-Nov-09 13-Nov-09 13-Nov-09 13-Nov-09 13-Nov-09 13-Nov-09 16-Nov-09 16-Nov-09

Nature of transaction Exercise of ESOS Exercise of ESOS Exercise of ESOS Conversion of ICPS-12 Exercise of Warrants-10 Exercise of Warrants-18 Exercise of ESOS Conversion of ICPS-11 Exercise of ESOS Exercise of ESOS Exercise of ESOS

Source: BMSB

BMSB: Off-market transactions… 12-Nov-09 AEONCR ALAM CBSTECH CIHLDG DIALOG E&O EVERGRN HAIO IBRACO IOICORP JAKS KINSTEL KOSSAN KPJ KPS KURASIA LIONIND LUXCHEM MANULFE MEDAINC NIHSIN PARKSON PBBANK RAMUNIA SARAWAK SUPPORT WCT-PA

Vol 923,800 6,693,500 501,500 750,000 1,000,000 5,300,000 600,000 462,700 4,600,000 1,500,000 1,652,100 2,260,900 1,004,600 662,400 551,700 5,000,000 2,740,800 2,400,000 500,000 1,500,000 9,285,400 4,500,000 700,000 751,100 3,000,000 1,588,000 1,466,666

Val (RM) 3,695,200 12,433,780 270,810 1,312,500 1,330,000 5,830,000 906,000 3,683,092 4,600,000 8,250,000 1,329,941 2,102,637 5,304,288 3,179,520 899,271 3,750,000 3,754,896 2,472,000 1,210,000 165,000 2,042,788 22,275,000 7,679,000 316,924 7,890,000 1,429,200 711,333

Notes: CN- Crossing deal on board lots MN- Married deal on board lots MO- Married deal on odd lots Source: BMSB

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Ave Price 4.00 1.86 0.54 1.75 1.33 1.10 1.51 7.96 1.00 5.50 0.81 0.93 5.28 4.80 1.63 0.75 1.37 1.03 2.42 0.11 0.22 4.95 10.97 0.42 2.63 0.90 0.48

BMSB: Entitlements & trading rights… 13-Nov-09 IOI CORPORATION

Ann Date 23-Jul-09

Ex-Date 24-Nov-09

Entitlement 1 Right @ RM2.90 : 15

Lodgement 26-Nov-09

Source: BMSB

BMSB: Dividends… Company NSTP HARTALEGA ASIA FILE LATEXX PARTNERS GUINNESS SIME DARBY YTL POWER DIALOG GROUP DIALOG GROUP HUNZA PROPERTIES

Particulars Special -TE 1st Interim -single-tier Final 2nd Interm- TE Final- TE Final -single-tier . Final -single-tier . Final 1 treasury share : 50 Final -single-tier .

Gross DPS ( RM Sen) 40.00 5.00 15.00 1.00 31.00 15.30 3.75 0.02 0.06

Source: BMSB, TE : Tax Exempt

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Ann Date 12-Nov-09 10-Nov-09 3-Sep-09 2-Nov-09 3-Nov-09 27-Aug-09 15-Oct-09 23-Oct-09 23-Oct-09 20-Oct-09

Ex-Date 24-Nov-09 24-Nov-09 26-Nov-09 30-Nov-09 1-Dec-09 2-Dec-09 4-Dec-09 7-Dec-09 7-Dec-09 11-Jan-10

Lodgement Date 26-Nov-09 26-Nov-09 1-Dec-09 2-Dec-09 3-Dec-09 4-Dec-09 8-Dec-09 9-Dec-09 9-Dec-09 13-Jan-10

Payment 7-Dec-09 24-Dec-09 28-Dec-09 16-Dec-09 22-Dec-09 15-Dec-09 24-Dec-09 9-Dec-09 9-Dec-09 28-Jan-10

BMSB: Proposed cash calls & trading of rights… 13-Nov-09 INIX TECHNOLOGIES MEXTER TECHNOLOGY HUNZA PROPERTIES PELIKAN MAH SING KENCANA

Ann Date 4-Jan-08 8-Aug-08 21-Oct-09 21-Oct-09 28-Oct-09 11-Nov-09

Proposed Private Placement Private Placement, Special Issue 3 Right + 1 Free Warrant : 10 1 Right @ RM1.10 : 2 Bonus Issue 1 : 5 , Private Placement Bonus Issue 3 : 10, 2 Right @ RM0.50 : 5

Source: BMSB

BMSB: Cash call 13-Nov-09 KUMPULAN JETSON FOTRONICS VTI VINTAGE CBS TECHNOLOGY FREIGHT ALAM MARITIM TOYO INK MALAYSIA STEEL DREAMGATE PERISAI PETROLEUM KENCANA UNISEM

Ann Date Cash Call 25-May-05 Private Placement 22-Sep-06 Special Issue 29-Jun-07 Special Issue 30-Aug-07 Special Issue 11-Sep-07 Private Placement 24-May-07 Private Placement 3-Mar-08 Private Placement 7-Mar-08 Private Placement 13-Nov-08 Private Placement @ RM0.18 16-Jun-09 Private Placement 22-Jun-09 Private Placement 17-Sep-09 Private Placement @ RM1.45

Approved

Source: BMSB

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SC

17-Oct-06

SC SC

1-Nov-07 12-Oct-07

SC SC SC SC SC BM

19-Mar-09 16-Apr-09 22-Jun-09 2-Jul-09 29-Sep-09

Aborted

Extended 19-Aug-09 17-Oct-09 27-Aug-09 31-May-09 12-Oct-09 23-Sep-09 6-Sep-09 20-Oct-09

Corporate actions November 2009 SUN

MON

1

WED

THU

FRI

SAT

2 3 Latexx 3Q, Unisem CI Holdings 1Q 3Q

4 External trade

5 Lingui 1Q, Star Publications 3Q

6 External reserves, AMMB 2Q

7

8

9 F&N 4Q, Metrod 3Q, EON Capital 3Q

10 IPI, Hartalega 2Q

11 Mudajaya 3Q, Tasek 3Q, Hong Leong Bank 1Q, Xingquan 1Q

12 Malayan Banking 1Q

13

14

15

16 Ann Joo 3Q

17 MRCB 3Q, MPI 1Q, JobStreet 3Q, Dialog 1Q

22

29

TUE

18 Manufacturing sales, CPI, WCT 3Q, Tan Chong 3Q, Petra Perdana 3Q 23 24 25 MISC 2Q, UM Land MPC, IJM 2Q, Money supply, 3Q, Petronas Maybulk 3Q, JTI 3Q09 GDP, MCIL Dagangan 2Q 3Q, QSR 3Q, Alam 2Q, MAS 3Q, Maritim 3Q Pelikan 3Q, Axiata 3Q, Uchi 2Q 30 PPI, Eksons 2Q

19 20 21 Lafarge 3Q, BAT External reserves, 3Q, Wah Seong 3Q PLUS 3Q, AirAsia 3Q, TM 3Q, Kossan 3Q, Wellcall 4Q 26 27 28 E&O 2Q

Source: Company, BNM, DOS, CIMB estimates

December 2009 SUN

MON

TUE

WED

THU

FRI

SAT

1

2

3

4 External trade

5

6

7 External reserves

8

9

10 IPI

11

12

13

14

15

16 CPI

17 Manufacturing sales

18

19

20

21

22 External reserves

23

24

25

26

27

28

29

30 Money supply

31 PPI

Source: Company, BNM, DOS, CIMB estimates

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RECOMMENDATION FRAMEWORK #1* STOCK RECOMMENDATIONS

SECTOR RECOMMENDATIONS

OUTPERFORM: The stock's total return is expected to exceed a relevant benchmark's total return by 5% or more over the next 12 months.

OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index over the next 12 months.

NEUTRAL: The stock's total return is expected to be within +/-5% of a relevant benchmark's total return.

NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months.

UNDERPERFORM: The stock's total return is expected to be below a relevant benchmark's total return by 5% or more over the next 12 months.

UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index over the next 12 months.

TRADING BUY: The stock's total return is expected to exceed a relevant benchmark's total return by 5% or more over the next 3 months.

TRADING BUY: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index over the next 3 months.

TRADING SELL: The stock's total return is expected to be below a relevant benchmark's total return by 5% or more over the next 3 months.

TRADING SELL: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index over the next 3 months.

* This framework only applies to stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand and Jakarta Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.

[ 15 ]

CIMB-GK Research Pte Ltd (Co. Reg. No. 198701620M)

RECOMMENDATION FRAMEWORK #2 ** STOCK RECOMMENDATIONS

SECTOR RECOMMENDATIONS

OUTPERFORM: Expected positive total returns of 15% or more over the next 12 months.

OVERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of +15% or better over the next 12 months.

NEUTRAL: Expected total returns of between -15% and +15% over the next 12 months.

NEUTRAL: The industry, as defined by the analyst's coverage universe, has either (i) an equal number of stocks that are expected to have total returns of +15% (or better) or -15% (or worse), or (ii) stocks that are predominantly expected to have total returns that will range from +15% to -15%; both over the next 12 months.

UNDERPERFORM: Expected negative total returns of 15% or more over the next 12 months.

UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of -15% or worse over the next 12 months.

TRADING BUY: Expected positive total returns of 15% or more over the next 3 months.

TRADING BUY: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of +15% or better over the next 3 months.

TRADING SELL: Expected negative total returns of 15% or more over the next 3 months.

TRADING SELL: The industry, as defined by the analyst's coverage universe, has a high number of stocks that are expected to have total returns of -15% or worse over the next 3 months.

** This framework only applies to stocks listed on the Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.

[ 16 ]