JF Apex Securities Berhad Newsletter Daily As Highlights 13 January 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 January 2014 Malaysia News & Highlights Sime Darby Plantation unit gets RSPO certification BAssets denies reports on Johor casino A&M in RM85mil share sale deal Seacera buys 60% in SPAZ Globetronics working with foreign partners to produce three new products Fitters seeks listing of subsidiary on Catalist Perodua unveils Alza variant I-Bhd gets new core ops Petronas throws lifeline for oil and gas sector Malaysia's property market to take a breather this year and next YTL Power frontrunner for Project 3B Foreign News U.S. Stocks Rise as Jobs Data Fuels Optimism of Stimulus U.K. Stocks Post Biggest Rally of 2014 as Miners Advance Asian Stocks Decline Most in Four Weeks on China Outlook Emerging Stocks Rise Most in Month After U.S. Jobs Report FBM KLCI Daily Chart Closing: Support: 1825 Resistance: 1882 FBM KLCI Index Change Closed FBM KLCI % 1, FBM ACE % 5, KLCI Top Movers Leading Change Closed HLFG % TM % 5.53 GENM % 4.36 GENTING % MISC % 5.50 Lagging Change Closed BAT % PETGAS % PPB % TENAGA % HLBANK % KLCI Top Volume Stocks Change Closed INGENCO % 0.10 SONA-WA % 0.28 HUBLINE % 0.07 MINETEC % 0.21 TIGER-WB % 0.07 IRIS-WB % 0.28 CSL % 0.21 BIOOSMO % 0.23 XDL-WA % 0.25 SONA % 0.46 U.S.Markets Index Change Closed DJIA % 16, S&P % 1, NASDAQ % 4, Foreign Markets Index Change Closed FTSE % 6, NIKKEI % 15, FSSTI % 3, HSI % 22, AS % 5, SET % 1, JCI % 4, Kospi % 1, Shanghai % 2, Foreign Exchange Currency Change Closed RM-USD % RM-EUR % RM-YEN % Commodity Futures (RM) Comm. Change Closed Crude Oil(brl) % CPO(ton) % 2, Soybean(bu) % Gold(oz) % 4, Please read carefully the important disclosures at end of this publication

2 Market Thoughts U.S. stock finished mixed on Friday, with Wall Street not certain how much credence to give a dismal December-payrolls report, given just how far afield it was from expectations as well as other economic reports that have signaled an improving labor market. However, European equities closed higher on Friday despite a worse-than-expected December U.S. jobs report. On the local exchange, the FBM KLCI shed 1.60 points to points. The index is sitting just above its support level of 1825 points. We expect further consolidation with a negative bias as the index corrects itself from the record high of 1872 points. Stocks to watch for today include a.) Sime Darby, as it has achieved its first ever Roundtable of Sustainable Palm Oil (RSPO) certification; b.) A&M Realty, following a share sale agreement to acquire more land into the company worth RM85m; c.) WZ Satu Bhd, after it announced that it will issue a renounceable rights issue; d.) Fitters Diversified Bhd, as the Group plans to list its unit Future NRG Sdn Bhd (FNRG) on the Singapore stock exchange. Malaysia News & Highlights Sime Darby Plantation unit gets RSPO certification Sime Darby Plantation Sdn Bhd has achieved its first ever Roundtable of Sustainable Palm Oil (RSPO) certification for smallholders under its Indonesian subsidiary, PT Minamas Gemilang. The plantation arm of Sime Darby Group said the achievement, which comes under the Kredit Koperasi Primer Anggota (KKPA Members Primary Credit Co-operative) scheme, was one year ahead of the mid-2014 target. (Source: The Star) BAssets denies reports on Johor casino Berjaya Assets Bhd has refuted reports saying that the company would open a casino in Johor. The board would like to formally state that there is no truth to the speculation regarding the possibility of the company being given the right to operate a gaming establishment akin to a casino in Johor, it said in a statement. (Source: The Star) A&M in RM85mil share sale deal A&M Realty Bhd has entered into a share sale agreement to acquireunik Sejati Sdn Bhd for RM85mil cash, in a bid to inject more land into the company. Filings with Bursa Malaysia showed that Unik Sejati is owned by A&M s executive chairman Ng Thian Hock and family. He has a 61.75% equity interest in A&M. The company owns two parcels of freehold land with a size totalling 54 ha in Sungai Buloh which has a market value of RM170mil. (Source: The Star) Seacera buys 60% in SPAZ Seacera Group Bhd has entered into a share subscription agreement to acquire a 60% stake in construction company SPAZ Sdn Bhd. In a statement, the group said it would subscribe to the company s shares for RM3mil, adding that the company had a total contract value in hand of about RM167.6mil. The existing shareholders of SPAZ are Mohd Azami Idris and Actual Capital Sdn Bhd. Seacera said the stake was expected to contribute positively to the future earnings of the group. (Source: The Star) Globetronics working with foreign partners to produce three new products Globetronics Technology Bhd is working with European and US customers to produce a new range of lightemitting diode (LED) chips, three-dimensional imaging modules and multi-port sensors to be introduced in the second half of Group chief executive officer Heng Huck Lee told StarBiz that the group was allocating RM40mil to RM50mil to develop the new products, which would be manufactured at its plant in Bayan Lepas. (Source: The Star)

3 Fitters seeks listing of subsidiary on Catalist Fitters Diversified Bhd has proposed to list its wholly-owned subsidiary, Future NRG Sdn Bhd (FNRG), on Catalist, the sponsor-supervised board of the Singapore Stock Exchange. FNRG is involved in renewable, alternative and waste-to-energy projects such as palm oil green mills, biomass plants and biogas capture plants. FNRG has appointed PrimePartners Corporate Finance Pte Ltd in Singapore as the full sponsor for the proposed listing. It has also appointed UOB Kay Hian Private Ltd in Singapore as the arranger, underwriter and placement agent in relation to the proposed listing. (Source : The Star) Perodua unveils Alza variant Perusahaan Otomobil Kedua Sdn Bhd (Perodua) expects its newly launched Alza multi-purpose vehicle (MPV) variant to boost contribution to total sales to 26% this year from 23% last year. We expect a 3% growth in contribution to total sales with our new Alza this year. We re targeting new as well as existing customers, said managing director and chief executive officer Datuk Aminar Rashid Salleh at a briefing prior to the launch of the MPV. He said Perodua was targeting to sell 4,300 units of its new Alza per month in The company was selling an average of 3,900 units per month last year. (Source : The Star) I-Bhd gets new core ops I-Bhd is gradually moving its core business from leisure to property development, with a target to roll out RM1.3bil worth of projects this year.the group, which started as an information and communications technology company before venturing into building theme parks, believes its property development division will be its growth engine in the next three to four years. To be launched this year is its Grand i-residence, with a gross development value (GDV) of RM800mil, and with a GDV of RM500mil, in the second quarter. (Source : The Star) Petronas throws lifeline for oil and gas sector Petroliam Nasional Bhd (Petronas) is undertaking major steps to rejuvenate the oil and gas (O&G) industry.the move comes in the face of Malaysian oilfields now entering the mature phase, marked by declining oil and gas extraction, after more than 30 years of extensive exploration and production. Petronas executive vice-president (exploration and production business) Datuk Wee Yiaw Hin said it was estimated that 50% of Malaysia s producing oil fields had EOR potential. Of these, currently more than 10 EOR projects are in the pipeline at various maturation stages. An estimated total investment of US$14bil (about RM46bil) is required to execute these EOR projects, he told Bernama. (Source: Bernama) Malaysia's property market to take a breather this year and next The property market might need at least two years to digest and recover from the various cooling measures that came into effect this month, but expect it to surge again in 2016, say industry officials. According to Malaysian Institute of Estate Agents president Siva Shanker, 2014 is expected to be a tough year for sales, but the market will find its footing next year and catch the next upcycle in The market ground to a standstill after Budget There was a knee-jerk reaction in sales. (Source: The Star) YTL Power frontrunner for Project 3B YTL Power International Bhd has emerged as the frontrunner in the keenly fought bid for Project 3B an RM11 billion project to build a 2,000MW coal-fired power plant that will be awarded soon. According to documents seen by The Edge, YTL Power was recommended as the preferred bidder to the Energy Commission (EC) board last month based on its notional adjusted tariff of sen per kwh, which was the lowest bid. (Source: The Edge)

4 Foreign News U.S. Stocks Rise as Jobs Data Fuels Optimism of Stimulus U.S. stocks rose, sending the Standard & Poor s 500 Index higher for the week, as a weaker-than-estimated jobs report eased concern that the Federal Reservemay accelerate the pace of stimulus cuts. The S&P 500 rose 0.2 percent to 1, at 4 p.m. in New York, after falling as much as 0.3 percent earlier in the day. The benchmark index added 0.6 this week, paring its drop in 2014 to 0.3 percent. The gauge climbed 30 percent last year, the most since The Dow Jones Industrial Average dropped 7.71 points, or 0.1 percent, to 16, About 6.6 billion shares changed hands on U.S. exchanges, 8.8 percent above the three-month average U.K. Stocks Post Biggest Rally of 2014 as Miners Advance U.K. stocks climbed, posting their biggest rally this year, as a report showing a slowdown in U.S. job creation bolstered speculation that the Federal Reserve won t rush to slow its bond-buying program.the FTSE 100 Index increased 48.6 points, or 0.7 percent, to 6, at the close in London, taking the equity benchmark s weekly advance to 0.1 percent. The broader FTSE All-Share Index added 0.9 percent today. Ireland s ISEQ Index lost 0.3 percent, paring its gain this week to 3.2 percent. Asian Stocks Decline Most in Four Weeks on China Outlook Asian stocks fell this week, with the regional benchmark gauge sliding the most in four weeks, as data from China added to concern about a slowdown in the world s second-largest economy. The MSCI Asia Pacific Index dropped 0.5 percent to , the biggest weekly decline since the five days ended Dec. 13. Shares slid as data showed China s services industries grew at a slower pace in December and factory-gate prices extended their longest streak of declines since the Asian financial crisis. Only three of the measure s 10 industry group climbed this week. Emerging Stocks Rise Most in Month After U.S. Jobs Report Emerging-market stocks advanced the most in a month, trimming their weekly decline, after a worse-thanestimated U.S. jobs report eased concern that the Federal Reserve will accelerate the pace of stimulus cuts. The MSCI Emerging Markets Index increased 0.7 percent to , paring its retreat for the week to 1 percent. The Borsa Istanbul 100 Index drove gains among the 94 world stock gauges tracked by Bloomberg amid a bank rally, while Russia s Micex Index erased losses as OAO Gazprom climbed. Mexico s IPC index rose the most since November as as pay-tv provider Grupo Televisa SAB surged. South Africa s rand and Brazil s real led advances among 21 out of 24 developing-nation currencies. (Source: Bloomberg) Futures Kuala Lumpur Composite Index JAN FEB MAR JUN CHANGE N/A OPEN 1, , ,697.0 N/A High 1, , ,698.5 N/A Low 1, , ,686.5 N/A Settle 1, , ,689.5 N/A Volume 3, N/A O.I. 36, , *As at 8.00am 13 January 2014 Futures Crude Palm Oil JAN FEB MAR APR CHANGE OPEN 2, , , ,454.0 High 2, , , ,463.0 Low 2, , , ,389.0 Settle 2, , , ,419.0 Volume , , ,771.0 O.I , , ,206.0

5 Technical Review: FBM KLCI Index Closing: Support: (S1) 1825 / (S2) 1800 Resistance: (R1) 1882 / (R2) 1900 Comments: The FBM KLCI fell 1.60 points to points. Technical indicators are mixed with the RSI hovering in the neutral zone while the MACD declined below its signal line. Following the record high, the index pulled back after hitting its upper channel and resistance of 1882 points. The index could consolidate before resuming its climb upwards. We expect the support level of 1825 points to hold. Spot Month Contract Closing: 1826 Support: (S1) 1824 / (S2) 1800 Resistance: (R1) 1877 / (R2) 1900 Comments: The spot-month futures lost 2.50 points to 1826 points. The contract represents 0.61 points discount to the cash market compared to 0.29 points premium in the previous trading day. Technical indicators are mixed with the RSI is moving sideways in the neutral zone while the MACD fell below its signal line. We expect the contract to consolidate above the support of 1824 points at the moment before resuming its uptrend.

6 3 rd Month Crude Palm Oil Contract CPO Closing: RM2517 Support: (S1) 2505 / (S2) 2425 Resistance: (R1) 2690 / (R2) 2755 Comments: The 3rd month CPO futures contract fell RM22 to RM2517. Technical indicators are negative with the MACD fell further below its signal line while the RSI is declining towards the oversold zone. The rally since October lifted the contract to a 1-year high and has now come to a halt. The uptrend channel since August is being tested now. After breaking the RM2600 level, the next support is seen at RM2505.

7 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)