Today s Highlights. Outside Malaysia. Company Update IOI Corp (HOLD, maintain) - Waiting

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1 Today s Highlights Company Update IOI Corp (HOLD, maintain) - Waiting Economy Fiscal Policy - Higher oil prices may provide some fiscal flexibility Economy ASEAN Outlook Weekly Wrap - BI kept its policy rate at 6.50% amid weak global outlook Outside Malaysia US stocks retreat from all-time highs amid earnings reports Jobless claims in US unexpectedly drop to three-month low Sales of existing US homes rise to highest level in nine years US home prices rose 5.6% yoy in May, FHFA says ECB leaves stimulus unchanged as Draghi gauges Brexit effect Kuroda says no need and no possibility for helicopter money Indonesia central bank pauses after four interest-rate cuts Oil falls amid stockpile glut as investors wait for stimulus Bursa M alaysia KLCI 52-wk range Mkt Cap (RMbn) 1, Vol (m shrs) 1, Value (RM m) 1, KLCI futures (spot) 1, KLCI futures (1-mth) 1, KLCI Index ( 12 - mt h) May 15 Aug 15 Nov 15 Feb 16 May 16 Top 5 Gainers Price (RM ) chg (RM ) % chg PANAM Y CHINTEK SAM BAT PHARM A Top 5 Losers Price (RM ) chg (RM ) % chg GENTING 8.68 (0.35) (3.88) NESTLE (0.30) (0.38) HLFG ( ) ( ) KESM 6.13 (0.15) (2.39) HUATLAI 4.16 (0.14) (3.26) Top 5 Value Traded Price (RM ) chg (RM ) V al (RM m) TENAGA (0.04) PBBANK (0.10) IHH 6.48 (0.12) MAYBANK 8.02 (0.10) GENTING 8.68 (0.35) Key Equity Indices Close % chg Ytd chg (%) KLCI (0.7) (2.1) Dow Jones (0.4) 6.3 Other Markets Key Indicators COMMODITIES CURRENCIES Latest chg (%) Latest Ytd chg (%) CPO (RM/Tonne) RM/US$ Spot (Jan) 2, RM per 100 Yen 3.82 (6.4) 3-mth futures (Mar) 2, RM/S$ Yen/US$ Brent Crude Oil (US$/brl) Eur/US$ 0.91 (1.5) Spot 44.8 (2.2) RM/AUD mth futures 45.5 (2.2) MALAYSIA INTEREST RATES Latest Ytd chg (bps) Gold (US$/oz) OPR (%) 3.00 (25.0) Spot mth Klibor (%) 3.40 (44.0) 1-mth futures Maybank BR (%) *as at 31 Dec 2014 Nasdaq (0.3) 1.3 FTSE (0.4) 7.3 East. Europe (0.0) (6.6) Mexico (0.3) 10.2 Shenzen B (11.7) Shanghai B (14.1) Hong Kong Korea (0.2) 2.6 Singapore (0.2) 2.0 Indonesia (0.5) 13.6 Philippines Thailand (0.5) 16.7 Viet nam (0.1) 13.9 India (0.7) 6.1 Taiwan Page 1 of 6

2 Outside Malaysia US stocks retreat from all-time highs amid earnings reports US stocks declined as results from companies including Intel Corp. and Southwest Airlines Co. disappointed, casting doubt on whether corporate earnings will be healthy enough to sustain equities at all-time highs. The S&P 500 fell 0.4% to 2, The Dow Jones Industrial Average declined points (0.4%) to 18, Jobless claims in US unexpectedly drop to three-month low The number of applications for US unemployment benefits unexpectedly fell last week, reaching a three-month low, indicating the labor market remains steady. Initial jobless claims dropped by 1,000 to 253,000 in the week ended July 16, from an unrevised 254,000 in the prior period, a report from the Labor Department showed. The median forecast of 44 economists surveyed by Bloomberg called for 265,000. Sales of existing US homes rise to highest level in nine years Sales of previously owned homes unexpectedly climbed in June to the highest level in more than nine years, giving a boost to residential real estate as it approached the end of its busy selling season. Contract closings climbed 1.1% to a 5.57m annual rate (forecast was 5.48m), the most since February US home prices rose 5.6% yoy in May, FHFA says US home prices rose 5.6% yoy in May as buyers competed for a scarcity of listings. Prices climbed 0.2% mom on a seasonally adjusted basis, the Federal Housing Finance Agency said in a report. The average estimate was for a 0.4% gain, according to data compiled by Bloomberg. ECB leaves stimulus unchanged as Draghi gauges Brexit effect The European Central Bank (ECB) kept its stimulus program unchanged as policy makers try to assess the economic damage inflicted by the UK s vote to leave the European Union. Officials left the main refinancing rate at zero, the deposit rate at -0.4% and asset purchases at 80bn (US$88bn) a month as predicted in a Bloomberg survey. Kuroda says no need and no possibility for helicopter money There is no need and no possibility of helicopter money in Japan, central bank Governor Haruhiko Kuroda said amid increasing speculation about the course of monetary and fiscal policy in the world s third-largest economy. At this moment, the Bank of Japan has three options with quantitative and qualitative easing with negative interest rates," he said. These current policies can be expanded, he said. Indonesia central bank pauses after four interest-rate cuts Indonesia s central bank left its benchmark interest rate on hold after four reductions this year, while signaling there s room for more easing to bolster growth in Southeast Asia s biggest economy. Governor Agus Martowardojo and his board kept the reference rate at 6.5%, as forecast by 10 of 26 economists surveyed by Bloomberg. The rest had predicted a cut of 25 basis points. Oil falls amid stockpile glut as investors wait for stimulus Oil dropped as the US is set to end the summer-driving season with ample stockpiles while investors await signs of additional central bank stimulus. Brent for September settlement fell US$0.97 (2.1%) to US$46.20 a barrel. Source: Bloomberg (Lim Yee Ping; ; yeeping.lim@affinhwang.com) Page 2 of 6

3 Market Summary Table 1: Off Market transactions Shares Price (RM) Vol (m) Val (RMm) Type* PLENITU D KLCCP D DESTINI D PIE D ASIAPLY D Source: Bloomberg Table 2: Shares Buyback/ Resale Company* Date Units Treasury Transaction PARKSON 21-Jul 380,000 52,473,480 Share Buyback SEM 21-Jul 100,000 67,600,000 Share Buyback E&O 21-Jul 917 4,988,063 Share Buyback * Only FBM100 Component Stocks Source : Bursa Malaysia Table 3: ESOS Company* Date Units Transaction * Only FBM100 Component Stocks Source : Bursa Malaysia Table 4: Entitlements Company Entitlement Ex-Date Lodgement Payment ASUPREM-LA Loan Stock Interes 2-Aug 4-Aug 12-Aug Source : Bursa Malaysia Page 3 of 6

4 Fig 5: Shareholding change Substantial Shareholder Date Transaction Units Company EPF 18-Jul-16 Disposed 871,100 AFG EPF 18-Jul-16 Acquired 1,173,900 AIRPORT EPF 18-Jul-16 Disposed 1,300,000 AIRPORT EPF 18-Jul-16 Acquired 200,000 ARMADA EPF 18-Jul-16 Disposed 3,000,000 ARMADA EPF 18-Jul-16 Disposed 241,500 AXIATA EPF 18-Jul-16 Acquired 5,000 BIMB EPF 18-Jul-16 Disposed 2,695,700 DIALOG EPF 18-Jul-16 Disposed 1,950,000 DIGI EPF 18-Jul-16 Acquired 4,000,000 DRBHCOM KUMPULAN WANG PERSARAAN 15-Jul-16 Acquired 141,300 GAMUDA KUMPULAN WANG PERSARAAN 15-Jul-16 Disposed 515,000 GAMUDA KUMPULAN WANG PERSARAAN 13-Jul-16 Disposed 1,000,000 GAMUDA EPF 18-Jul-16 Acquired 182,700 GENP EPF 18-Jul-16 Disposed 130,700 GENP LEI SHING HONG INVESTMENT LTD 20-Jul-16 Acquired 24,000,000 HAPSENG EPF 18-Jul-16 Acquired 768,800 HARTA EPF 18-Jul-16 Disposed 290,800 HARTA EPF 18-Jul-16 Disposed 481,500 HLBANK EPF 18-Jul-16 Acquired 600,000 IGBREIT KUMPULAN WANG PERSARAAN 14-Jul-16 Acquired 160,000 IGBREIT KUMPULAN WANG PERSARAAN 16 Disposed 2,311,200 IGBREIT EPF 18-Jul-16 Acquired 2,814,100 IHH EPF 18-Jul-16 Acquired 93,700 IJM EPF 18-Jul-16 Disposed 2,000,000 IOICORP EPF 16 Disposed 649,500 IOIPG EPF 18-Jul-16 Acquired 65,700 KLK EPF 15-Jul-16 Disposed 2,000,000 MALAKOF EPF 18-Jul-16 Acquired 1,580,900 PBBANK EPF 18-Jul-16 Disposed 1,909,200 PBBANK EPF 15-Jun-16 Acquired 1,300,000 PCHEM EPF 16-Jun-16 Acquired 777,000 PCHEM EPF 17-Jun-16 Disposed 4,752,300 PCHEM EPF 20-Jun-16 Disposed 4,000,000 PCHEM EPF 16-Jun-16 Disposed 2,756,200 PCHEM EPF 18-Jul-16 Disposed 141,800 PETGAS EPF 18-Jul-16 Disposed 200,000 POS EPF 18-Jul-16 Disposed 136,500 PPB EPF 18-Jul-16 Disposed 374,100 RHBBANK EPF 18-Jul-16 Disposed 382,200 SKPETRO EPF 18-Jul-16 Disposed 500,000 SPSETIA EPF 18-Jul-16 Acquired 50,000 TIMECOM EPF 18-Jul-16 Acquired 630,000 TM EPF 18-Jul-16 Disposed 300,000 TM EPF 18-Jul-16 Acquired 200,000 TOPGLOV EPF 18-Jul-16 Disposed 100,000 UMWOG EPF 18-Jul-16 Acquired 6,289,400 UOADEV EPF Jul-16 Acquired 831,000 WCT EPF 14-Jul-16 Disposed 260,000 WCT EPF 18-Jul-16 Disposed 140,900 YINSON EPF 18-Jul-16 Disposed 1,000,000 YTL Source: Bursa Malaysia Page 4 of 6

5 Fig 6: Dividend Entitlement Stocks Particulars DPS (sen) Announce Ex-Date Lodge Payment ASB First and Final Dividend Apr Jul Jul Aug-16 OPCOM Interim Dividend Jul Jul Jul Aug-16 ENGKAH Final Dividend Apr Jul Jul Aug-16 PANTECH Final Dividend Jun Jul Jul Aug-16 PRESTAR Final Dividend Apr Jul Jul Aug-16 TGUAN Final Dividend Apr Jul Jul Aug-16 ARMADA Final Dividend Apr Jul-16 1-Aug Aug-16 ATLAN First Interim Dividend Jul Jul-16 1-Aug Aug-16 ENRA Special Dividend Jul Jul-16 1-Aug Aug-16 ENRA First Interim Dividend Jul Jul-16 1-Aug Aug-16 FAVCO First and Final Dividend Apr Jul-16 1-Aug Aug-16 MUHIBAH First and Final Dividend Apr Jul-16 1-Aug-16 9-Sep-16 IBHD Final Dividend Jul Jul-16 2-Aug Aug-16 MJPERAK Final Dividend May Jul-16 2-Aug Aug-16 TAMBUN Final Dividend Jun-16 1-Aug-16 3-Aug Aug-16 UMCCA Second Interim Dividend Jun-16 1-Aug-16 3-Aug Aug-16 TAHPS First and Final Dividend Jun-16 2-Aug-16 4-Aug Aug-16 YINSON Final Dividend May-16 2-Aug-16 4-Aug Aug-16 PERSTIM Final Dividend Jun-16 3-Aug-16 5-Aug Aug-16 ENGKAH First Interim Dividend Jul-16 4-Aug-16 8-Aug Aug-16 JKGLAND First and Final Dividend May-16 4-Aug-16 8-Aug Aug-16 KERJAYA Interim Dividend Jul-16 7-Aug-16 3-Aug Aug-16 CRESNDO Final Dividend Mar Aug Aug-16 5-Sep-16 KMLOONG Final Dividend Mar Aug Aug-16 9-Sep-16 ZHULIAN Second Interim Dividend Jul Aug Aug-16 9-Sep-16 IKHMAS Final Dividend Apr Aug Aug Sep-16 LBS First and Final Dividend Apr Aug Aug-16 5-Sep-16 FITTERS First and Final Dividend Apr Aug Aug-16 9-Sep-16 PANSAR First and Final Dividend Jun Aug Aug Sep-16 MAXIS Interim Dividend Jul Aug Aug Sep-16 MAHSING First and Final Dividend Apr Aug-16 2-Sep Sep-16 DOMINAN Final Dividend Jul-16 5-Sep-16 7-Sep Sep-16 KARYON Final Dividend Jun-16 6-Sep-16 8-Sep Sep-16 PANAMY Final Dividend May-16 6-Sep-16 8-Sep Sep-16 HEIM Second Interim Dividend Jul-16 7-Sep-16 9-Sep-16 7-Oct-16 ELKDESA Final Dividend Jun Sep Sep Sep-16 PANTECH First Interim Dividend Jul Sep Sep Oct-16 WEIDA First and Final Dividend Jun-16 6-Oct Oct Oct-16 APOLLO First and Final Dividend Jun-16 8-Dec Dec-16 9-Jan-17 Source: Bursa Malaysia Page 5 of 6

6 Equity Rating Structure and Definitions BUY Total return is expected to exceed +10% over a 12-month period HOLD Total return is expected to be between -5% and +10% over a 12-month period SELL Total return is expected to be below -5% over a 12-month period NOT RATED Affin Hwang Investment Bank Berhad does not provide research coverage or rating for this company. Report is intended as information only and not as a recommendation The total expected return is defined as the percentage upside/downside to our target price plus the net dividend yield over the next 12 months. OVERWEIGHT Industry, as defined by the analyst s coverage universe, is expected to outperform the KLCI benchmark over the next 12 months NEUTRAL Industry, as defined by the analyst s coverage universe, is expected to perform inline with the KLCI benchmark over the next 12 months UNDERWEIGHT Industry, as defined by the analyst s coverage universe is expected to under-perform the KLCI benchmark over the next 12 months This report is intended for information purposes only and has been prepared by Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) ( the Company ) based on sources believed to be reliable. However, such sources have not been independently verified by the Company, and as such the Company does not give any guarantee, representation or warranty (express or implied) as to the adequacy, accuracy, reliability or completeness of the information and/or opinion provided or rendered in this report. Facts, information, views and/or opinion presented in this report have not been reviewed by, may not reflect information known to, and may present a differing view expressed by other business units within the Company, including investment banking personnel. Reports issued by the Company, are prepared in accordance with the Company s policies for managing conflicts of interest arising as a result of publication and distribution of investment research reports. Under no circumstances shall the Company, its associates and/or any person related to it be liable in any manner whatsoever for any consequences (including but are not limited to any direct, indirect or consequential losses, loss of profit and damages) arising from the use of or reliance on the information and/or opinion provided or rendered in this report. Any opinions or estimates in this report are that of the Company, as of this date and subject to change without prior notice. Under no circumstances shall this report be construed as an offer to sell or a solicitation of an offer to buy any securities. The Company and/or any of its directors and/or employees may have an interest in the securities mentioned therein. The Company may also make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not fit to your financial status, risk and return preferences and hence an independent evaluation is essential. Investors are advised to independently evaluate particular investments and strategies and to seek independent financial, legal and other advice on the information and/or opinion contained in this report before investing or participating in any of the securities or investment strategies or transactions discussed in this report. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. The Company s research, or any portion thereof may not be reprinted, sold or redistributed without the consent of the Company. The Company, is a participant of the Capital Market Development Fund-Bursa Research Scheme, and will receive compensation for the participation. This report is printed and published by: Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) A Participating Organisation of Bursa Malaysia Securities Bhd Chulan Tower Branch, 3rd Floor, Chulan Tower, No 3, Jalan Conlay, Kuala Lumpur. research@affinhwang.com Tel : Fax : Page 6 of 6