JF Apex Securities Berhad Newsletter Daily As Highlights 2 December 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 2 December 2013 Malaysia News & Highlights Prolintas clinches RM11.5b deals Counters dropped from syariah list feel the heat MK Land to launch properties RM700m GDV KKB Engineering s unit awarded RM227 mln contract 'Thong weighing options to raise Insas stake' MRCB eyes big sum for assets It prefers payment in cash to enhance liquidity MRCB changes mind on Platinum Sentral sale Sime Darby cuts capex by RM2b to RM4b for current FY Foreign News U.S. Stocks Fall, Erasing Earlier Gain on Retailer Rally U.K. Stocks Erase Advance in Final Half Hour of Trading Asian Stocks Advance as U.S. Data Improve, Yen Falls Japan Stocks Decline as Oil Producers, Paper Makers Drop Euro-Area Inflation Holds at Less Than Half ECB Ceiling Spain s Bonds Advance Amid Recovery Signs as S&P Raises Outlook FBM KLCI Daily Chart Closing: Support: 1780 Resistance: 1820 FBM KLCI Index Change Closed FBM KLCI % 1, FBM ACE % 5, KLCI Top Movers Leading Change Closed PETDAG % PETGAS % HLFG % PPB % PETCHEM % 6.75 Lagging Change Closed HLBANK % GENTING % BAT % TENAGA % 9.86 GENM % 4.24 KLCI Top Volume Stocks Change Closed SUMATEC % 0.31 XOX % 0.17 SUMATEC-WB % 0.25 TIGER % 0.22 BLOOSMO % 0.16 ECOFIRS % 0.19 INSAS % 0.97 KNM % 0.43 DSCSOL % 0.23 SOLUTN % 0.32 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 % 23, AS % 5, SET % 1, JCI % 4, Kospi % 2, 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. stocks on Friday tallied a third month of gains, as retailers including ebay and Best Buy rose on hopes for a robust holiday shopping weekend. Similarly, European stock markets closed narrowly higher, after data released on Friday showed that euro zone unemployment fell in October by the largest amount since April On the local exchange, the FBM KLCI rose 5.12 points to points. Following the bullish performance in the US and Europe, we expect the FBM KLCI to be positive today buoyed by the psychological level of 1800 points. Stocks that may lure investors interests are: a.) Construction counters as the concession agreements for two highways namely Damansara-Shah Alam Elevated DASH and Sungai Besi-Ulu Klang Elevated SUKE worth an estimated RM11.5b were inked, b.) KKB Engineering, after its unit was awarded a contract worth RM227m, c.) Sime Darby, following the Capex reduction by the Group for the current financial year, and d.) Insas, as media highlighted that Datuk Thong Kok Khee is contemplating a buy-out. Malaysia News & Highlights Prolintas clinches RM11.5b deals Projek Lintasan Kota Sdn Bhd (Prolintas) has inked concession agreements (CAs) for two Klang Valley highway projects worth an estimated RM11.5 billion. Agreements were inked last month for the Damansara-Shah Alam Elevated Expressway (DASH) and the Sungai Besi-Ulu Klang Elevated Expressway (SUKE), says Works Minister Datuk Fadillah Yusof. Construction and land acquisition costs for DASH is estimated to be RM4.18 billion and RM880 million, respectively. For SUKE, the construction cost and land acquisition cost is expected to be about RM4.3 billion and RM1.14 billion, respectively. (Source: Business Times) Counters dropped from syariah list feel the heat Shares in some of the biggest names on Bursa Malaysia, including SP Setia Bhd and Bumi Armada Bhd, may come under some pressure from funds that follow strict syariah investment guidelines after they failed to make the cut into Securities Commission s (SC) revamped list of syariah-compliant companies. As of Aug 31, there were 176 Islamic-based equity investment funds with net asset value (NAV) of RM38.2bil or 11.8% of the combined NAV of RM323.8bil syariah-based and conventional-based funds. The one of biggest Islamic fund manager in the country is Lembaga Tabung Haji. A quick check showed that the pilgrim fund owns susbtantial stake in a number of companies that had been dropped from the new syariah counters. These includes an 8.8% in Malaysian Resources Corp Bhd, as well as in Konsortium Logistik Bhd and Ann Joo Resources Bhd. (Source: The Star) MK Land to launch properties RM700m GDV Premier developer, MK Land Holdings Bhd, aims to launch properties with a Gross Development Value (GDP) of RM700 million next year. Group chief executive officer Lau Shu Chuan said the property launches would be concentrated around Damansara Damai in the Klang Valley and Meru, Ipoh. "Previously, MK Land focused on its Rafflesia project which comprised high-rise and semi-detached landed properties. It was our main driver as far as revenue is concerned," he told reporters (Source: Business Times) KKB Engineering s unit awarded RM227 mln contract KKB Engineering Bhd s (KKB) unit, Harum Bidang Sdn Bhd (HBSB), has been awarded a contract for the Additional Supply Order of Mild Steel Pipes and Pipes Specials by CMS Infra Trading Sdn Bhd, at an estimated contract sum of RM227 million. In a filing to Bursa Malaysia today, the company said the supply order is for the proposed construction and completion of the Tanjung Manis Water Supply Project (Phase 1) in Sarawak. (Source: The Edge) 'Thong weighing options to raise Insas stake' Datuk Thong Kok Khee is weighing the possibility of expanding his stake in Insas beyond the 33 per cent threshold, a move which will automatically force the tycoon to buy out the entire company, sources say. They said Thong could offer anything between RM1.10 and RM1.25 a share to take Insas private and consolidate his

3 position in the company. However, chances are that an offer in the range of RM1.25 a share may be spurned by minority shareholders because it is way below the break-up value of the company. (Source: Business Times) MRCB eyes big sum for assets It prefers payment in cash to enhance liquidity Malaysian Resources Corp Bhd (MRCB) threw out the kitchen sink in the third quarter ended Sept 30 and may end up in the red for the full year of The conglomerate may be monetising some of its mature assets for a substantial sum to be concluded in January, according to sources. The recent disposal of GTC Global Sdn Bhd for RM45mil is considered small, there should be something more substantial going forward, a source said but declined to elaborate. It is possible that MRCB will dispose of its non-core unit MRCB Technologies Sdn Bhd that provides information technology services and professional outsourcing, another source said. That is on top of its plans to sell its 30% stake in Duta-Ulu Kelang Expressway, which is believed to be worth RM200mil. (Source: The Star) MRCB changes mind on Platinum Sentral sale Malaysian Resources Corp Bhd (MRCB) has shelved plans to dispose of the 1.5-year old Platinum Sentral in Kl Sentral after only recently invited for bids. We are keeping Platinum Sentral and we have no plans to sell it, MRCB group chief operating officer Mohd Imran Mohamad Salim tells The Edge when contacted via . (Source: The Edge) Sime Darby cuts capex by RM2b to RM4b for current FY Conglomerate Sime Darby Bhd is cutting downs its capital expenditure (capex) to RM4 billion from RM6 billion for its current financial year ending June 30, 2014, said its president and chief executive officer Tan Sri Mohd Bakke Salleh. He cited the current performance and the external business environment to be the main factors in the reduction of the capex. (Source: The Edge) Foreign News U.S. Stocks Fall, Erasing Earlier Gain on Retailer Rally U.S. stocks fell as investors sold shares in the final half hour of a shortened trading session, erasing earlier gains fueled by a rally in online retailers amid Black Friday sales. The S&P 500 fell 0.1 percent to 1,805.81, reversing an earlier gain of as much as 0.4 percent. The gauge advanced 0.1 percent for the week, extending its winning streak to eight weeks, the longest since The Dow Jones Industrial Average lost points, or 0.1 percent, to 16, today. Trading in S&P 500 stocks was 8.9 percent below the 30-day average. U.S. markets were closed yesterday for the Thanksgiving holiday and trading ended at 1 p.m. today. U.K. Stocks Erase Advance in Final Half Hour of Trading U.K. stocks erased gains in the final half an hour of trading, with the benchmark FTSE 100 Index posting its first monthly loss since August, as the pound strengthened to a two-year high. The FTSE 100 dropped 3.9 points, less than 0.1 percent, to 6, at the close in London, erasing an earlier advance of as much as 0.4 percent. The equity benchmark slid 1.2 percent in November. It has still rallied 13 percent this year as central banks around the world pledged to keep interest rates low for a prolonged period to support the economic recovery. The FTSE All-Share Index fell less than 0.1 percent today, while Ireland s ISEQ Index gained 0.2 percent. Asian Stocks Advance as U.S. Data Improve, Yen Falls Asian stocks rose this week, paring their monthly decline, as U.S. data boosted confidence in the world s largest economy and a weaker yen helped the Nikkei 225 Stock Average touch a near six-year high. The MSCI Asia Pacific Index gained 0.6 percent to this week, trimming its November decline to 0.2 percent. Shares fell the previous week after minutes from the Federal Reserve s most-recent meeting signaled it may reduce record stimulus in coming months if the economy shows sustained improvement. Japan Stocks Decline as Oil Producers, Paper Makers Drop Japanese shares fell, with the Topix index paring its three-week advance, as oil producers and paper shares declined. The Topix fell 0.2 percent to 1, at the close of trading in Tokyo, capping a 0.8 percent gain this week and a 5.4 percent advance for November. About nine stocks on the 1,746-member index rose for every seven that declined. The Nikkei 225 Stock Average slipped 0.4 percent to 15, after closing yesterday at

4 an almost six-year high. The yen traded at against the dollar today, after weakening 0.2 percent yesterday. Euro-Area Inflation Holds at Less Than Half ECB Ceiling Euro-area inflation stayed below 1 percent for a second month, less than half the European Central Bank s ceiling, underscoring the weakness in parts of the euro region s economy. The annual rate rose to 0.9 percent from 0.7 percent in October, the European Union s statistics office in Luxembourg said in a preliminary estimate today. The median forecast in a Bloomberg News survey of 44 economists was for 0.8 percent. Separately, unemployment unexpectedly dropped to 12.1 percent. Spain s Bonds Advance Amid Recovery Signs as S&P Raises Outlook Spain s government bonds rose, with 10-year yields falling the most in two weeks, as signs of economic recovery prompted Standard & Poor s to raise its outlook for the nation s debt. Spain s 10-year securities pared a monthly decline after S&P affirmed its credit rating at BBB-, the lowest investment grade, and changed the outlook to stable from negative. Italy s 10-year yield dropped to the lowest since May. German bunds were little changed as euro-area reports showed inflation accelerated more this month than economists forecast and unemployment unexpectedly declined in October. Dutch bonds were little changed after S&P stripped the Netherlands of its top rating. (Source: Bloomberg) Futures Kuala Lumpur Composite Index DEC JAN FEB MAY CHANGE OPEN 1, ,809.0 N/A 1,807.0 High 1, ,813.5 N/A 1,812.0 Low 1, ,806.5 N/A 1,803.0 Settle 1, , , ,811.5 Volume 3, ,540.0 N/A O.I. 35, *As at 8.00am 2 December 2013 Futures Crude Palm Oil DEC JAN FEB MAR CHANGE OPEN 2, , , ,659.0 High 2, , , ,679.0 Low 2, , , ,645.0 Settle 2, , , ,656.0 Volume , , ,223.0 O.I. 1, , , ,885.0

5 Technical Review: FBM KLCI Index Closing: Support: (S1) 1780 / (S2) 1760 Resistance: (R1) 1820 / (R2) 1826 Comments: The FBM KLCI gained 5.12 points to points. Technical indicators are flat with the RSI hovering in the neutral zone while the MACD moving lower below its signal line. In early May, the index rallied to an all time high of points after the general election but has since been moving sideways until August s selldown to a 4-month low. We expect consolidation with an upward bias with support of 1780 points and resistance of 1820 points. Spot Month Contract Closing: Support: (S1) 1775 / (S2) 1750 Resistance: (R1) 1828 / (R2) 1834 Comments: The spot-month futures rose 2.00 points to points. The contract represents 1.22 points discount to the cash market compared to 2.90 points premium in the previous trading day. Technical indicators are mixed with the RSI hovered in the neutral zone while the MACD hovered above its signal line. We expect consolidation below resistance level of 1828 points with an upward bias.

6 3 rd Month Crude Palm Oil Contract CPO Closing: RM2654 Support: (S1) 2630 / (S2) 2505 Resistance: (R1) 2755 / (R2) 2820 Comments: The 3rd month CPO futures contract lost RM3 to RM2654. Technical indicators are mixed with the MACD crossing over its signal line from below while the RSI hovered below the overbought zone. The rally since last month failed to beat the resistance of RM2630 and remains in the long-term sideways trend since October The contract broke the immediate resistance level of RM2630 and is embarking on an uptrend.

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)