MCI (P) 129/11/2012 Ref No: SGMN2012_0251 1 of 16

Phillip Securities Research Pte Ltd

Singapore

Morning Note

28 December 2012

Morning Commentary - STI: +0.10% to 3183.9 - MSCI SE Asia: +0.22% to 867.1 - Hang Seng: +0.35% to 22619.8 - MSCI APxJ: +0.23% to 463.7 - Euro Stoxx 50: +0.43% to 2660.0 - S&P500: -0.12% to 1418.1 MARKET OUTLOOK: By Ng Weiwen, Macro Analyst The S&P 500 and DJIA staged a late rally, recovering from intra-day lows that pierced through their 50dma and 200dma support levels respectively. What provided the spark? Well, news that the House of Representatives is scheduled to reconvene on Sunday, paving the way for last-minute fiscal budget negotiations to avert the dreaded year-end fiscal cliff. While US lawmakers are back to business (specifically the negotiating table), time is running out. Though there might be little time (before Dec 31) to iron out the fundamental differences between the Democrats and Republicans, an agreement could still be struck by the end of this year on stop-gap measures with regard to tax and spending issues to avert the cliff , leaving most of the heavy lifting -overhauling the tax code, healthcare entitlement, broader deficit reduction deal - to 2013. Furthermore, the US is close to breaching its debt limit - again. But before you start to panic, emergency measures could kick in (in the worse case scenario) and would keep the government afloat for around another two months. Nonetheless, we expect Congress to eventually raise the debt ceiling which it has regularly done in the past (though unlikely to be part of this narrow year-end fiscal deal) to prevent the US from defaulting on its debt obligations. In Singapore, the STI drifted higher. Yesterday's 'gravestone doji' suggests that bulls want to charge higher but lack the conviction to do so amid uncertainties over the looming US fiscal cliff. Should a fiscal deal -even a more modest one- be hammered by next Monday (Dec 31), we could still see a strong impulse move up. We are Overweight Singapore on account of the following: (i) The Singapore equity market (MSCI SG: around 3.5% dividend yield) is likely to be a key beneficiary in the global search of yield amid large-scale asset purchases as well as monetary easing bias by G4 central banks, and (ii) Ongoing multi-year construction boom will lend support to the economy (amid sluggish external demand) as the government seeks to ease supply-side infrastructure bottlenecks arising from a faster-than-expected increase in resident population. ETF: SPDR STI (ES3:SGX) / Nikko AM STI (G3B:SGX). CFD: Straits Times Index SGD5 CFD (STI), Singapore Index SGD20 CFD (SMSCI). Our SG equity strategist’s top picks are SIAEC, Capitaland & Pan United. SECTOR/STRATEGY REPORTS: - Singapore Sector Reports: Telecommunications, 12 Dec / Banks, 5 Dec / Commodities Sector 3 Dec / Property, 27 Nov / Transport, 19 Nov - Country Strategy: S’pore, 26 Dec / China & HK, 19 Dec / Thai, 19 Dec - Global Macro, Asset Strategy: US, 21 Dec / ASEAN, 5 Dec / Update, 25 Oct Source: Phillip Securities Research Pte Ltd

Morning Note 28 December 2012

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Macro Data In the US, the housing market recovery continues to gain traction. Specifically, new home sales surged 4.4% to 377,000 saar (a 2-year high) in Nov. However, consumer confidence -as measured by the Conference Board index- slumped 6.4 pts to 65.1 in Dec, following a downward revision to Nov data (revised from a 0.6 pt increase to 1.6 pts decline). In Thailand, industrial production surged 83% y-y in Nov, following a 36% gain in the preceding month due to a low base effect from last year’s devastating floods. Recall the central bank (BoT) had earlier stood pat in Nov, maintaining the benchmark one-day bond repurchase rate at 2.75% -consistent with our expectations- in view of resilient domestic demand as well as an improving global economy. In China, industrial profit rose for a third month in Nov, by 22.8% y-y, after the 20.5% y-y gain in Oct. The year to date industrial profit grew by 3% y-y for the first 11 months in 2012, compared to the 0.5% y-y growth achieved for the first 10 months. The accelerating industrial profit continues to add signs to the nation’s economic bottoming out. In Hong Kong, exports rose by 10.5% y-y in Nov, compared to a 2.8% y-y drop in Oct. Imports rose by 9.0% y-y, compared to a 3.3% y-y gain in Oct. By trading partners, export to China rose by 19.0% y-y in Nov, a second double digit growth in the past 3 months, after the 1.1% y-y gain in Oct and 25.5% y-y gain in Sept, reflecting a reviving demand from mainland China’s reacceleration. Exports to US rose by 0.3% y-y in Nov, compared to a 2.4% y-y drop in Oct. Though exports to US and Europe might remain sluggish, the accelerating growth in China is likely to have positive spillover to Hong Kong’s local economy. In Japan, total motor vehicle exports decreased by 13.5% y-y in Nov, after a 18.5% y-y contraction in Oct and 19.6% y-y contraction in Sept. The substantial decreases are due to the island dispute with China started in early September as sales are seriously affected in China. A separate report shows that the nation’s domestic construction order rose by 4.7% y-y in Nov, the first gain in last 3 months, after a 14.7% y-y drop in Oct. The recent weakening yen following expectation of further easing by the new government might help stabilize the nation’s sluggish export going forward. Source: Phillip Securities Research Pte Ltd

Source: Bloomberg

STI - Index Members

2.8% 1.5%

1.1%

0.9%

0.8%

0.4%

0.4%

0.4%

0.4%

0.3%

0.3%

0.3%

0.2%

0.2%

0.0%

0.0%

0.0%

0.0%

-0.1%

-0.2%

-0.2%

-0.3%

-0.3%

-0.5%

-0.5%

-0.6%

-0.7%

-0.7%

-1.3%

-1.4%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Wilm

ar

Jardine Stra.

Starhub

Jardine Mat.

Golden A

gri-R.

HK Land

Noble G

roup

IHH

Genting S

P

UO

B

Keppel C

orp. Ltd

Capitaland

Sem

bcorp Mar.

Sem

bcorp Ind.

SG

X

Com

fortDelG

ro

Capitam

alls Asia

Capitam

all Trust

OC

BC

F&N

SPH

Jardine C&

C

DBS

CD

L

ST E

ng.

Singtel

SIA

Eng.

SIA

Olam

GLP

Morning Note 28 December 2012

3 of 14

Company Highlights Keppel Corporation’s subsidiary, Keppel Offshore and Marine, said on Thursday that it had bagged contracts totalling S$420 million for shipbuilding and upgrading work, bringing its full-year order haul to S$9.9 billion, just shy of its 2011 record of S$10 billion. Keppel Singmarine, which builds specialised ships, secured two contracts. It will build a deepwater pipelay vessel for a McDermott International subsidiary called Hydro Marine Services and begin work in Q1 next year. Keppel Singmarine will also construct a catamaran air dive support vessel for Australia-based Bhagwan Marine that will be deployed to the north west of Western Australia after it is completed in Q1 2014. (Closing price: S$10.960, +0.274%) Olam International now holds a 100 per cent interest in NZ Farming Systems Uruguay Ltd (NZFSU), following the commodity trader's full cash takeover offer for all of the shares it did not already own, which closed on Nov 30. On Nov 26, Olam said it had acquired more than 90 per cent of the shares in NZFSU and had become a dominant owner under the takeovers code. It then went on to complete the compulsory acquisition of the remaining NZFSU shares for NZ$25.8 million (S$25.9 million). "NZFSU has already been delisted and its ordinary shares ceased to be quoted on the NZX Main Board from close of business on Dec 6, 2012," said Olam on Thursday. The entire acquisition of a 100 per cent shareholding in NZFSU cost Olam NZ$159.6 million. (Closing price: S$1.525, -1.294%) Technics Oil & Gas Ltd is looking to raise net proceeds of S$11.2 million in a new share issuance to Eversendai Corporation Bhd, a Malaysian-listed structural steel turnkey and power plant contractor. Eversendai currently has a 13.85 per cent interest in Technics. Technic on Thursday said it has entered into an agreement with Eversendai to allot and issue the latter 10.7 million new ordinary shares at S$1.05 a share - which is a 2 per cent premium to Technic's weighted average price per share for trades done on Wednesday. The placement shares will make up about 4.77 per cent of Technic's enlarged issued and paid-up share capital. (Closing price: S$1.055, +2.427%) Nam Cheong Ltd on Thursday said its subsidiary, Nam Cheong International Ltd, had secured US$56.4 million (S$69 million) worth of contracts. The contracts include one unit of platform supply vessel and two units of anchor handling towing supply vessels. These new contracts bring the total number of vessels sold by the company this year to a record 21. Revenue from the contracts will be recognised over the relevant contractual period in accordance with the group's revenue recognition policy. (Closing price: S$0.255, +2.0%) Source: SGX Masnet, The Business Times

Morning Note 28 December 2012

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79.62 -0.00% 295.55 -0.06%

109.55 +0.86% 1.736 -0.01%

1,664.26 -0.07% 13,096.31 -0.14%

544.50 +0.24% Straits Times Index 3,183.93 +0.10%

22,619.78 +0.35% 10,322.98 0.91%

Source: Bloomberg

Gold (US$/Oz) DJI

MSCI Asia x-Japan

Hang Seng Index Nikkei 225 Index

Dollar Index ThomReuters/JefferiesCRB

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

1.201.401.601.802.002.202.40

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

2,500

2,700

2,900

3,100

3,300

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

11,000

12,000

13,000

14,000

Dec-11

Jan-12

Feb-12

Mar-

12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

17,00018,00019,00020,00021,00022,00023,000

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

7,500

8,500

9,500

10,500

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

1,500

1,600

1,700

1,800

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

78

80

82

84

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

260

280

300

320

340

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

90

100

110

120

130

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

420440460480500520540

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Morning Note 28 December 2012

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Phillip Securities Research - Singapore Stocks Coverage

Company Analyst Rating Target Price (S$)

Current Price (S$)

Difference to Target Price (%)

GOLDEN AGRI-RESOURCES LTD Nicholas Ong Accumulate 0.680 0.650 4.6%WILMAR INTERNATIONAL LTD Nicholas Ong Accumulate 3.47 3.36 3.3%

GENTING SINGAPORE PLC Magdalene Choong Neutral 1.15 1.38 -16.7%COMBINE WILL INTERNATIONAL H Chan Wai Chee Buy 0.93 0.90 3.3%

DBS GROUP HOLDINGS LTD Ken Ang Neutral 15.10 14.86 1.6%OVERSEA-CHINESE BANKING CORP Ken Ang Reduce 8.30 9.84 -15.7%UNITED OVERSEAS BANK LTD Ken Ang Accumulate 20.95 19.88 5.4%SINGAPORE EXCHANGE LTD Ken Ang Neutral 6.77 7.03 -3.7%

CAPITALAND LTD Bryan Go Accumulate 3.97 3.73 6.4%CAPITAMALLS ASIA LTD Bryan Go Accumulate 1.93 1.94 -0.5%HO BEE INVESTMENT LTD Bryan Go Neutral 1.44 1.90 -24.2%KEPPEL LAND LTD Bryan Go Neutral 3.28 4.04 -18.8%OVERSEAS UNION ENTERPRISE Bryan Go Neutral 2.83 2.79 1.4%SC GLOBAL DEVELOPMENTS LTD Bryan Go Neutral 1.80 1.90 -5.0%GLOBAL PREMIUM HOTELS LTD Chan Wai Chee Buy 0.305 0.26 19.6%STAMFORD LAND CORP LTD Chan Wai Chee Buy 0.76 0.58 31.0%SINGXPRESS LAND LTD Chan Wai Chee Restricted 0.016

CDL HOSPITALITY TRUSTS Travis Seah Neutral 1.970 1.89 4.2%PARKWAYLIFE REAL ESTATE Travis Seah Accumulate 2.33 2.13 9.4%SABANA SHARIAH COMP IND REIT Travis Seah Neutral 1.15 1.13 1.8%

SATS LTD Derrick Heng Accumulate 2.94 2.89 1.7%SIA ENGINEERING CO LTD Derrick Heng Buy 5.00 4.40 13.6%SINGAPORE TECH ENGINEERING Derrick Heng Accumulate 3.96 3.85 2.9%KEPPEL CORP LTD Change of Analyst 10.96SEMBCORP INDUSTRIES LTD Change of Analyst 5.26SEMBCORP MARINE LTD Change of Analyst 4.63HU AN CABLE HOLDINGS LTD Chan Wai Chee Buy 0.164 0.118 39.0%SUNPOWER GROUP LTD Chan Wai Chee Buy 0.250 0.20 28.2%

SINGAPORE AIRLINES LTD Derrick Heng Buy 13.40 10.88 23.2%TIGER AIRWAYS HOLDINGS LTD Derrick Heng Sell 0.45 0.71 -36.6%NEPTUNE ORIENT LINES LTD Derrick Heng Accumulate 1.36 1.14 19.3%SMRT CORP LTD Derrick Heng Sell 1.35 1.68 -19.4%COMFORTDELGRO CORP LTD Derrick Heng Buy 1.80 1.78 1.1%

HENGYANG PETROCHEMICAL LOGIS Chan Wai Chee Buy 0.27 0.197 37.1%

SINGAPORE TELECOM LTD Ken Ang Neutral 3.06 3.30 -7.3%STARHUB LTD Ken Ang Neutral 3.20 3.81 -16.0%M1 LTD Ken Ang Neutral 2.41 2.68 -10.1%

Phillip Securities Research - US Stocks Coverage

Company Analyst Rating Target Price (US$)

Current Price (US$)

Difference to Target Price (%)

LAS VEGAS SANDS CORP Magdalene Choong Neutral 40.00 45.55 -12.2%WYNN RESORTS LTD Magdalene Choong Neutral - 111.01 -MGM RESORTS INTERNATIONAL Magdalene Choong Accumulate 12.90 11.71 10.2%Source: Phillip Securities Research Pte Ltd

Commodities & Supply Chain Managers

Consumer Goods

Banking & Finance

Property (Developers)

Property (REITS)

Industrials (Capital Goods)

Industrials (Transportation)

Technology & Communications

Morning Note 28 December 2012

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FTSE ST Breakdown (3M % Change)

STI 4.0%

6.5%

-2.0%

6.4%

-2.7%1.1%

3.7%

-4.7%

4.4%

9.8%

-7.5%

-1.1%

2.9%

ST China

ST Real Estate

ST Re Invest Trust

ST Oil & Gas

ST Basic Materials

ST Industrials

ST Consumer Goods

ST Consumer Service

ST Telecommunicate

ST Utilites

ST Financials

ST Technology8.0%

ST Healthcare

Source: Bloomberg

Last % Chg0.075 47.10.440 22.20.530 17.80.058 16.00.072 14.3

Last % Chg0.071 -13.40.126 -11.90.280 -9.70.011 -8.30.036 -5.3

Source: Bloomberg Source: SGX

2,8381,032

260199497

Turnover (S$'mn)UPDOWN

HOR KEW CORP LTDDESIGN STUDIO FURNITURE MFGR

Top Gainers (%)FTSE ST Market Cap. Breakdow n (3M % Change)

Turnover ('mn shares)

Top Losers (%)

JASPER INVESTMENTS LTD

UNCHANGED

ROWSLEY LTD

MEWAH INTERNATIONAL INC

DEBAO PROPERTY DEVELOPMENTINFORMATICS EDUCATION LTD

INNOPAC HOLDINGS LTD

CEFC INTERNATIONAL LTDSource: Bloomberg

TOP GLOBAL LTD

3.9%

4.3% 5.8%

ST All Share

ST Fledgling

ST Small Cap

ST Mid Cap

STI4.0%

4.1%

Morning Note 28 December 2012

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Source: Bloomberg

World Index

JCI 0.16% 4,281.86

HSI 0.35% 22,619.78

KLCI 0.15% 1,674.16

NIKKEI 0.91% 10,322.98

KOSPI 0.26% 1,987.35

SET 1.08% 1,397.19

SHCOMP -0.60% 2,205.90 SENSEX -0.48% 19,323.80

ASX 0.28% 4,647.96

FTSE 100 0.00% 5,954.30

DOW -0.14% 13,096.31

S&P 500 -0.12% 1,418.10

NASDAQ -0.14% 2,985.91 COLOMBO 0.83% 5,570.91

STI 0.10% 3,183.93

ETF % Change Change LastABF SINGAPORE BOND INDX FUND +2.28 +0.03 1.21CIMB FTSE ASEAN 40 +1.78 +0.19 10.89DB X-TRACKERS CSI300 ETF -0.12 -0.01 8.23DB X-TRACKERS FTSE VIETNAM +0.37 +0.08 21.68DB X-TRACKERS MSCI INDONE +0.67 +0.10 14.99ISHARES MSCI INDIA INDEX ETF +0.48 +0.03 6.33LYXOR ETF CHINA ENTERPRISE +0.68 +0.10 14.80NIKKO AM SINGAPORE STI ETF +0.94 +0.03 3.23SPDR GOLD TRUST -0.59 -0.95 160.72SPDR STRAITS TIMES INDEX ETF +0.31 +0.01 3.22UNITED SSE 50 CHINA ETF -0.58 -0.01 1.72

ETF Perform ance

Source: Bloomberg

Morning Note 28 December 2012

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EX Date Company Type Net Amount Currency Frequency Record Date Payout Date1/2/2013 HIAP SENG ENGINEERING LTD Interim 0.0050 SGD Semi-Anl 1/4/2013 1/18/20131/11/2013 NETEASE INC-ADR Special Cash 0.9800 USD None 1/15/2013 1/22/20131/15/2013 GLOBAL PREMIUM HOTELS LTD Interim 0.0020 SGD Irreg 1/17/2013 1/28/20131/17/2013 HISAKA HOLDINGS LTD Special Cash 0.0025 SGD Annual 1/21/2013 1/31/20131/22/2013 WBL CORP LTD Final 0.0500 SGD Semi-Anl 1/24/2013 2/18/20131/22/2013 ASIA PACIFIC BREWERIES LTD Final 0.8500 SGD Semi-Anl 1/24/2013 2/6/20131/24/2013 THAI VILLAGE HOLDINGS LTD Regular Cash 0.0080 SGD Annual 1/28/2013 2/13/20131/28/2013 OLD CHANG KEE LTD Regular Cash 0.0500 SGD Annual 1/30/2013 2/20/20131/29/2013 MERMAID MARITIME PCL Regular Cash 0.0274 THB Annual 1/31/2013 2/22/20132/1/2013 FRASER AND NEAVE LTD Final 0.1200 SGD Semi-Anl 2/5/2013 2/21/20132/6/2013 PNE INDUSTRIES LTD Regular Cash 0.0040 SGD Annual 2/8/2013 2/25/2013

Corporate Action : Dividend

Source: Bloomberg

EX Date Company Type Subscription Price Currency Term Record Date12/28/2012 OLAM INTERNATIONAL LTD Preferred Right 0.9500 SGD 1 per 1 1/2/2013Source: Bloomberg

Corporate Action: Rights

Morning Note 28 December 2012

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Name Expected Report DateSingapore Press Holdings Ltd January 14, 2013Singapore Exchange Ltd January 16, 2013CapitaMall Trust January 18, 2013Keppel Corp Ltd January 25, 2013SIA Engineering Co Ltd January 31, 2013Singapore Airlines Ltd February 1, 2013StarHub Ltd February 1, 2013CapitaMalls Asia Ltd February 8, 2013DBS Group Holdings Ltd February 8, 2013ComfortDelGro Corp Ltd February 13, 2013Singapore Telecommunications Ltd February 13, 2013CapitaLand Ltd February 14, 2013Fraser and Neave Ltd February 14, 2013Global Logistic Properties Ltd February 14, 2013Olam International Ltd February 14, 2013Oversea-Chinese Banking Corp Ltd February 20, 2013Genting Singapore PLC February 22, 2013SembCorp Marine Ltd February 22, 2013Singapore Technologies Engineering Ltd February 22, 2013United Overseas Bank Ltd February 22, 2013Wilmar International Ltd February 22, 2013Golden Agri-Resources Ltd February 27, 2013SembCorp Industries Ltd February 27, 2013City Developments Ltd February 28, 2013IHH Healthcare Bhd February 28, 2013Jardine Cycle & Carriage Ltd February 28, 2013Noble Group Ltd February 28, 2013Hongkong Land Holdings Ltd March 1, 2013Jardine Matheson Holdings Ltd March 1, 2013Jardine Strategic Holdings Ltd March 1, 2013Singapore Press Holdings Ltd April 12, 2013Singapore Exchange Ltd April 17, 2013CapitaMall Trust April 18, 2013Keppel Corp Ltd April 19, 2013CapitaMalls Asia Ltd April 25, 2013Jardine Cycle & Carriage Ltd April 25, 2013DBS Group Holdings Ltd April 26, 2013CapitaLand Ltd April 30, 2013StarHub Ltd May 3, 2013SIA Engineering Co Ltd May 7, 2013SembCorp Marine Ltd May 9, 2013Singapore Airlines Ltd May 9, 2013Singapore Technologies Engineering Ltd May 9, 2013United Overseas Bank Ltd May 9, 2013City Developments Ltd May 10, 2013Fraser and Neave Ltd May 10, 2013Genting Singapore PLC May 10, 2013Golden Agri-Resources Ltd May 10, 2013Oversea-Chinese Banking Corp Ltd May 10, 2013SembCorp Industries Ltd May 10, 2013Singapore Telecommunications Ltd May 10, 2013Wilmar International Ltd May 10, 2013ComfortDelGro Corp Ltd May 14, 2013Noble Group Ltd May 14, 2013Olam International Ltd May 15, 2013Source: Bloomberg

Earning Announcement – Singapore

Calendar

Morning Note 28 December 2012

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Date Statistic For Survey Prior Date Statistic For Survey Prior12/28/2012 Chicago Purchasing Manager Dec 51 50.4 12/31/2012 Credit Card Bad Debts Nov -- 18.8M12/28/2012 Pending Home Sales MoM Nov 1.00% 5.20% 12/31/2012 Credit Card Billings Nov -- 3356.7M12/28/2012 Pending Home Sales YoY Nov 12.20% 18.00% 12/31/2012 Bank Loans & Advances (YoY) Nov -- 17.90%12/31/2012 NAPM-Milw aukee Dec -- 45.5 12/31/2012 M1 Money Supply (YoY) Nov -- 4.00%12/31/2012 Dallas Fed Manf. Activity Dec -- -2.8 12/31/2012 M2 Money Supply (YoY) Nov -- 5.40%1/2/2013 Markit US PMI Final Dec 53.2 52.8 1/2/2013 GDP (annualized) (QoQ) 4Q A -- -5.90%1/2/2013 Construction Spending MoM Nov 0.60% 1.40% 1/2/2013 GDP (YoY) 4Q A -- 0.30%1/2/2013 ISM Manufacturing Dec 50.1 49.5 1/3/2013 Electronics Sector Index Dec -- 47.41/2/2013 ISM Prices Paid Dec 50 52.5 1/3/2013 Purchasing Managers Index Dec -- 48.81/3/2013 MBA Mortgage Applications 28-Dec -- -12.30% 1/7/2013 Foreign Reserves Dec -- $255.77B1/3/2013 Challenger Job Cuts YoY Dec -- 34.40% 1/9/2013 Automobile COE Open Bid Cat A 2-Jan -- 818891/3/2013 RBC Consumer Outlook Index Jan -- 46.9 1/9/2013 Automobile COE Open Bid Cat B 2-Jan -- 935011/3/2013 ADP Employment Change Dec 137K 118K 1/9/2013 Automobile COE Open Bid Cat E 2-Jan -- 959901/3/2013 Initial Jobless Claims 29-Dec -- -- 1/15/2013 Retail Sales (MoM) sa Nov -- 0.60%1/3/2013 Continuing Claims 23-Dec -- -- 1/15/2013 Retail Sales (YoY) Nov -- -1.00%

Source: BloombergSource: Bloomberg

US SingaporeEconomic Announcement

Morning Note 28 December 2012

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Important Information This publication is prepared by Phillip Securities Research Pte Ltd., 250 North Bridge Road, #06-00, Raffles City Tower, Singapore 179101 (Registration Number: 198803136N), which is regulated by the Monetary Authority of Singapore (“Phillip Securities Research”). By receiving or reading this publication, you agree to be bound by the terms and limitations set out below. This publication has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this document by mistake, please delete or destroy it, and notify the sender immediately. Phillip Securities Research shall not be liable for any direct or consequential loss arising from any use of material contained in this publication. 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Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this publication, and may have performed services for or solicited business

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from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this publication. Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment. To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold a interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this publication. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, which is not reflected in this material, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the preparation or issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this material. 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 Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction. Section 27 of the Financial Advisers Act (Cap. 110) of Singapore and the MAS Notice on Recommendations on Investment Products (FAA-N01) do not apply in respect of this publication. 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 professional and financial adviser regarding the legal, business, financial, tax and other aspects including 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. Please contact Phillip Securities Research at [65 65311240] in respect of any matters arising from, or in connection with, this document. This report is only for the purpose of distribution in Singapore.

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Contact Information (Singapore Research Team)

Chan Wai Chee Joshua Tan Derrick Heng CEO, Research Head of Research Deputy Head of Research

Special Opportunities Global Macro, Asset Strategy SG Equity Strategist & Transport

+65 6531 1231 +65 6531 1249 +65 6531 1221 yebo@phillip.com.sg joshuatan@phillip.com.sg derrickhengch@phillip.com.sg

Magdalene Choong, CFA Go Choon Koay, Bryan Travis Seah

Investment Analyst Investment Analyst Investment Analyst Regional Gaming Property REITs +65 6531 1791 +65 6531 1792 +65 6531 1229

magdalenechoongss@phillip.com.sg gock@phillip.com.sg travisseahhk@phillip.com.sg

Ken Ang Ng Weiwen Roy Chen Investment Analyst Macro Analyst Macro Analyst

Financials, Telecoms Global Macro, Asset Strategy Global Macro, Asset Strategy +65 6531 1793 +65 6531 1735 +65 6531 1535

kenangwy@phillip.com.sg ngww@phillip.com.sg roychencz@phillip.com.sg

Nicholas Ong Research Assistant Investment Analyst General Enquiries

Commodities, Offshore & Marine +65 6531 1240 (Phone) +65 6531 5440 research@phillip.com.sg

nicholasonghg@phillip.com.sg

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Contact Information (Regional Member Companies)

SINGAPORE

Phillip Securities Pte Ltd Raffles City Tower

250, North Bridge Road #06-00 Singapore 179101

Tel : (65) 6533 6001 Website: www.poems.com.sg

MALAYSIA

Phillip Capital Management Sdn Bhd B-3-6 Block B Level 3 Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450

Kuala Lumpur Tel (603) 21628841 Fax (603) 21665099

Website: www.poems.com.my

HONG KONG Phillip Securities (HK) Ltd

Exchange Participant of the Stock Exchange of Hong Kong 11/F United Centre 95 Queensway

Hong Kong Tel (852) 22776600 Fax (852) 28685307

Websites: www.phillip.com.hk

JAPAN

Phillip Securities Japan, Ltd. 4-2 Nihonbashi Kabuto-cho Chuo-ku,

Tokyo 103-0026 Tel: (81-3) 3666-2101 Fax: (81-3) 3666-6090

Website:www.phillip.co.jp

INDONESIA

PT Phillip Securities Indonesia ANZ Tower Level 23B,

Jl Jend Sudirman Kav 33A Jakarta 10220 – Indonesia

Tel (62-21) 57900800 Fax (62-21) 57900809

Website: www.phillip.co.id

CHINA

Phillip Financial Advisory (Shanghai) Co. Ltd No 550 Yan An East Road,

Ocean Tower Unit 2318, Postal code 200001

Tel (86-21) 51699200 Fax (86-21) 63512940

Website: www.phillip.com.cn

THAILAND Phillip Securities (Thailand) Public Co. Ltd

15th Floor, Vorawat Building, 849 Silom Road, Silom, Bangrak,

Bangkok 10500 Thailand Tel (66-2) 6351700 / 22680999

Fax (66-2) 22680921 Website www.phillip.co.th

FRANCE

King & Shaxson Capital Limited 3rd Floor, 35 Rue de la Bienfaisance 75008

Paris France Tel (33-1) 45633100 Fax (33-1) 45636017

Website: www.kingandshaxson.com

UNITED KINGDOM

King & Shaxson Capital Limited 6th Floor, Candlewick House,

120 Cannon Street, London, EC4N 6AS

Tel (44-20) 7426 5950 Fax (44-20) 7626 1757

Website: www.kingandshaxson.com

UNITED STATES

Phillip Futures Inc 141 W Jackson Blvd Ste 3050

The Chicago Board of Trade Building Chicago, IL 60604 USA

Tel +1.312.356.9000 Fax +1.312.356.9005

AUSTRALIA

Octa Phillip Securities Ltd Level 12, 15 William Street,

Melbourne, Victoria 3000, Australia Tel (03) 9629 8288 Fax (03) 9629 8882

Website: www.octaphillip.com