JF Apex Securities Berhad Newsletter Daily As Highlights 13 February Malaysia News & Highlights. Foreign News.

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1 JF APEX SECURITIES BERHAD (47680-X) KDN PP13226/04/2013 (032022) JF Apex Securities Berhad Newsletter Daily As Highlights 13 February 2014 Malaysia News & Highlights CEO Tony says AirAsia in cost-cutting drive, installing check-in self-service machines UMW Oil & Gas buys 2 rigs worth RM1.44bil MAS signs maintenance deal with Pratt & Whitney Tambun Indah sees recurring income from Pearl City in 2015 Northern corridor authority targets RM10bil investments Malaysia's growth intact, GDP boosted by rising exports and investments MRCB eyeing UEM Builders Hektar REIT 4Q net property income up 10.3% Scomi Energy Services bags RM195m contract Foreign News. U.S. Stocks Decline After Rally as P&G, Amazon.com Drop European Stocks Rise for Sixth Day on ING, SocGen Profit Yellen Sees Few Risks to Divert Fed From QE Tapering Strategy Japan Stock Futures Fall After S&P 500 Ends 4-Day Rally FBM KLCI Daily Chart Closing: Support: 1770 Resistance: 1826 Please read carefully the important disclosures at end of this publication

2 Market Thoughts U.S. stocks were mixed on Wednesday, with Procter & Gamble's reduced earnings outlook weighing on the Dow industrials and the S&P little changed after its largest four-day rise in more than a year. Meanwhile, European stocks closed higher as investors around the globe cheered a combination of U.S. Federal Reserve Chair Janet Yellen's reassurance of supportive monetary policy, strong Chinese export data and a U.S. debt deal in Congress. On the local market, the FBM KLCI added 1.47 points to points. The index is capped by its resistance of 1826 points and we see consolidation and profit taking following its recent rally. Investors may find interest in the following stocks: MRCB, as the media reported that the group is interested to acquire UEM Builders, UMW Oil & Gas, after the group is buying two jack-up drilling rigs for RM1.4b; Scomi Energy, as the group has secured a contract worth RM195 million in Thailand. Malaysia News & Highlights CEO Tony says AirAsia in cost-cutting drive, installing check-in self-service machines AirAsia Bhd s group chief executive officer (CEO) Tan Sri Tony Fernandes unveiled this latest initiative of installing self-service machines as check-in counters via several pictures on Twitter yesterday. Fernandes noted that this would be the first of its cost-reduction methods. (The machines) do not require document checks (when checking in) as long as you don t need a visa, he said in a separate Tweet. (Source: The Star) UMW Oil & Gas buys 2 rigs worth RM1.44bil In an effort to expand its assets portfolio, UMW Oil & Gas Corp Bhd (UMW-OG) has announced the acquisition of two more jack-up rigs worth US$434mil (RM1.44bil). The purchase of the two jack-up rigs from Tianjin Haiheng & Offshore Engineering Service Co Ltd came a week after the announcement of its acquisition of its sixth jack-up rig from Singapore s Keppel FELS. (Source: The Star) MAS signs maintenance deal with Pratt & Whitney Malaysia Airlines (MAS) has signed an exclusive 10-year fleet management programme with Pratt & Whitney to maintain the airline s fleet of 43 PW4170 installed engines and spare engines. The agreement, which includes an option to extend the contract for up to five additional years, is valued at about US$510mil (RM1.69bil), MAS said in a statement yesterday. (Source: The Star) Tambun Indah sees recurring income from Pearl City in 2015 Tambun Indah Land Bhd, a leading property developer in mainland Penang, expects recurring income starting next year from its 43.3-hectare business park project in Simpang Ampat. Managing director Teh Kiak Seng said the park at Pearl City, its flagship township development, would be equipped with facilities such as a shopping complex, international school, medical centre and a retirement village. (Source: The Star) Northern corridor authority targets RM10bil investments The Northern Corridor Implementation Authority (NCIA) is targeting to achieve RM10bil investments for the northern region this year, which is the same as in NCIA chief executive Datuk Redza Rafiq said the manufacturing sector would continue to play a substantial role in contributing to the investments. (Source: The Star) Malaysia's growth intact, GDP boosted by rising exports and investments Malaysia s economy grew 5.1% year-on-year in the final quarter of 2013, exceeding market expectations of a 4.8% rise. Economists were encouraged by the set of data released by Bank Negara and the Statistics Department yesterday and attributed the improvement in the health of the economy to the exports and continued strength in private investments. (Source: The Star)

3 MRCB eyeing UEM Builders Malaysian Resources Corp Bhd (MRCB), Which IS 38.9% owned by the EMployees Provident Fund (EPF), is exploring the possibility of acquiring UEM Builders Bhd to streghthen its construction arm, said sources. It is understood that MRCB has held preliminary talks with UEM Builders, the enginering and construction unit of UEM Group, for a possible takeover. (Source: The Edge) Hektar REIT 4Q net property income up 10.3% Hektar Real Estate Investment Trust (REIT), a retail-focused REIT, recorded a 10.3% year-on-year increase in net property income (NPI) to RM20 million for its fourth quarter ended Dec 31 of financial year 2013 (4QFY13). Gross revenue for the quarter rose 4.7% to RM30.4 million. Realised net income stood at RM13.15 million for the quarter under review, up 21.7%. (Source: The Edge) Scomi Energy Services bags RM195m contract Scomi Energy Services Bhd has secured a contract worth RM195 million from PTTEP Siam Ltd and PTTEP International Ltd. In a statement yesterday, it said the three-year contract is for the provision of drilling fluids services for an onshore drilling campaign in Thailand. Its CEO Shah Hakim Zain said the job represents the company's largest oilfield services contract held in Thailand currently. With this award, he said Scomi Energy Services' current order book in Thailand stands at RM260 million. With a healthy pipeline of tenders being pursued, he said the company's growth prospects remain bright. (Source: The Sun) Foreign News U.S. Stocks Decline After Rally as P&G, Amazon.com Drop U.S. stocks fell, after the biggest four-day jump in a year for the Standard & Poor s 500 Index, as declines in companies from Procter & Gamble Co. to Amazon.com Inc. overshadowed optimism about economic growth. The S&P 500 fell less than 0.1 percent to 1, at 4 p.m. in New York, after gaining as much as 0.4 percent earlier in the day. The Dow Jones Industrial Average dropped points, or 0.2 percent, to 15, About 6.4 billion shares changed hands on U.S. exchanges, in line with the three-month average. European Stocks Rise for Sixth Day on ING, SocGen Profit European stocks rose for a sixth day, their longest winning streak this year, as companies from ING Groep NV to Societe Generale SA posted profit that beat estimates, and a report showed Chinese exports surged. The Stoxx Europe 600 Index advanced 0.8 percent to 332 at the close of trading. The equity benchmark has risen 4.5 percent since Feb. 4 as investors assessed when the Federal Reserve will announce the third reduction to its monthly bond-buying program. The gauge remains 1.2 percent below the six-year high it reached on Jan. 22. Yellen Sees Few Risks to Divert Fed From QE Tapering Strategy Janet Yellen, taking charge as Federal Reserve chairman, let lawmakers know she s united with her policy committee and sees few risks that could derail a plan to steadily reduce the Fed s bond purchases. Yellen, testifying to the House Financial Services Committee yesterday, said she was surprised by reports showing weaker job growth yet wants to see more data before assessing the health of the labor market. Global financialmarket turbulence doesn t pose a major risk to the U.S. economy, she said, and inflation is likely to move up toward the Fed s 2 percent target -- even after missing it for almost two years. Japan Stock Futures Fall After S&P 500 Ends 4-Day Rally Japanese stock-index futures fell, following the first decline in five days for the Standard & Poor s 500 Index. The yen was little changed against the dollar, while commodities from oil to copper held gains. (Source: Bloomberg)

4 Futures Kuala Lumpur Composite Index Futures Crude Palm Oil *As at 8.00am 13 February 2014 Technical Review: FBM KLCI Index Closing: Support: (S1) 1770 / (S2) 1720 Resistance: (R1) 1826 / (R2) 1882 Comments: The FBM KLCI added 1.47 points to points. Technical indicators are positive with the RSI rising in the neutral zone while the MACD crossed above its signal line. Following the record high in late Dec, the index pulled back after hitting its upper channel and resistance of 1882 points. The selldown since January was halted by the 200-day moving average which serves as its base for rebound. The bullish momentum slowed as down after being capped by the resistance of 1826 points. We expect consolidation at the moment.

5 FKLI Spot Month Contract FKLI Closing: 1823 Support: (S1) 1750 / (S2) 1685 Resistance: (R1) 1835 / (R2) 1880 Comments: The spot-month FKLI futures gained 3.00 points to 1823 points. The contract represents 2.64 points discount to the cash market compared to 4.17 points discount in the previous trading day. Technical indicators improved with the RSI rising above the oversold zone while the MACD is cutting above its signal line. Following the major selldown, the contract rebounded off the 200-day moving average but was capped by the resistance of 1835 points. We expect consolidation after the recent surge. 3 rd Month Crude Palm Oil Contract CPO Closing: RM2634 Support: (S1) 2500 / (S2) 2400 Resistance: (R1) 2650 / (R2) 2690 Comments: The 3rd month CPO futures contract gained RM24 to RM2634. Technical indicators improved with the MACD cutting above its signal line while the RSI is climbing in the neutral zone. The rally since July 2013 lifted the contract to a 1-year high. A correction saw the contract came off the RM2490 level supported by the 100- day moving average. The contract broke the resistance of RM2600 and could extend the uptrend.

6 JF APEX SECURITIES BERHAD CONTACT LIST JF APEX SECURITIES BHD Head Office: 6 th Floor, Menara Apex Off Jalan Semenyih Bukit Mewah Kajang Selangor Darul Ehsan Malaysia General Line: (603) Facsimile: (603) PJ Office: 15 th Floor, Menara Choy Fook On No. 1B, Jalan Yong Shook Lin Petaling Jaya Selangor Darul Ehsan Malaysia General Line: (603) Facsimile: (603) DEALING TEAM Head Office: Kong Ming Ming (ext 3237) Shirley Chang (ext 3211) Norisam Bojo (ext 3233) Wong Wing Haur, Alvin (ext 3226) Institutional Dealing Team: Lim Teck Seng Sanusi Bin Mansor (ext 740) Fathul Rahman Buyong (ext 741) Ahmad Mansor (ext 744) Lum Meng Chan (ext 743) Zairul Azman (ext 746) PJ Office: Mervyn Wong (ext 363) Mohd Hanif Wan Said (ext 111) Fong Jia Wen (ext 822) Nursyazaleen Hazwani (ext 362) RESEARCH TEAM Head Office: Lee Chung Cheng (ext 758) Lee Cherng Wee (ext 759) Jessica Low Jze Tieng (ext 756) Soong Wei Siang (ext 754) Gabriela Fang Minn Fern (ext 753) Elliya Harisna binti Junaedi (ext 752) JF APEX SECURITIES BERHAD - DISCLAIMER Disclaimer: The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of JF Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report. Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of JF Apex Securities Berhad and are subject to change without notice. JF Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. JF Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against JF Apex Securities Berhad. JF Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of JF Apex Securities Berhad. Published & Printed by: JF Apex Securities Berhad (47680-X) (A Participating Organisation of Bursa Malaysia Securities Berhad)