Today s Highlights. Quick bites. Outside Malaysia. Sector Update Rubber Products (NEUTRAL, maintain) - Stretched year ahead

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1 Today s Highlights Sector Update Rubber Products (NEUTRAL, maintain) - Stretched year ahead Economy ASEAN Outlook Weekly Wrap - Singapore decided to stop SGD appreciation path Quick bites PCHEM: Cancelled the proposed elastomers project in RAPID Outside Malaysia US stocks little changed as banks gain, technology shares drop Core consumer prices in US cool in sign pickup transitory Jobless claims in US decline to match lowest since 1973 Euro area consumer prices stagnate in March after revision Singapore adopts 2008 crisis policy as growth grinds to halt Australian unemployment falls to 2-1/2 year low IEA sees oil oversupply almost gone in second half on shale drop Oil slips before Doha talks as IEA sees global market balancing Bursa M alaysia KLCI 52-wk range Mkt Cap (RM bn) 1, Vol (m shrs) 1, Value (RMm) 1, KLCI futures (spot) 1, KLCI futures (1-mth) 1, KLCI Index ( 12 - mt h) Feb 15 May 15 Aug 15 Nov 15 Feb 16 Top 5 Gainers Price (RM ) chg (RM ) % chg PANAM Y LAYHONG GAB ALLIANZ PWROOT Top 5 Losers Price (RM ) chg (RM ) % chg BAT (0.46) (0.83) SAM 6.00 (0.31) (4.91) CMSB 4.28 (0.22) (4.89) BLDPLNT 8.53 (0.17) (1.95) UMW 6.78 (0.17) (2.45) Top 5 Value Traded Price (RM ) chg (RM ) V al (RM m) TENAGA MAYBANK 9.15 unch AIRASIA PBBANK CIMB Key Equity Indices Close % chg Ytd chg (%) KLCI Other Markets Key Indicators COMMODITIES CURRENCIES Latest chg (%) Latest Ytd chg (%) CPO (RM/Tonne) RM/US$ Spot (Jan) 2,626.0 (0.1) RM per 100 Yen mth futures (Mar) 2, RM/S$ Yen/US$ Brent Crude Oil (US$/brl) Eur/US$ 0.89 (3.7) Spot 41.5 (0.6) RM/AUD mth futures 42.7 (0.8) MALAYSIA INTEREST RATES Latest Ytd chg (bps) Gold (US$/oz) OPR (%) Spot 1225 (1.7) 3-mth Klibor (%) 3.70 (16.0) 1-mth futures (1.7) Maybank BR (%) *as at 31 Dec 2014 Dow Jones Nasdaq (0.0) (1.2) FTSE East. Europe (6.9) Mexico (0.0) 5.7 Shenzen B (15.0) Shanghai B (13.4) Hong Kong (3.4) Korea Singapore Indonesia (0.8) 5.7 Philippines Thailand NT NT 7.6 Viet nam (0.2) India NT NT (1.9) Taiwan Page 1 of 7

2 Quick Bites PCHEM: Cancelled the proposed elastomers project in RAPID Petronas Chemicals Group (PCHEM) announced that it will not proceed with the proposed elastomers project in Refinery and Petrochemical Integrated Development (RAPID) that was first announced on 3 November This leave the group with only two petrochemical projects in RAPID, the proposed Glycols plant and Polymers plant. The decision to abandon the elastomers project was made after a review conducted on various key aspects of the project, including the product s market outlook and project return on investment. The initial budgeted capex for the polymers, glycols and elastomers segments was c.usd3.9bn with a combined capacity of 3.5m mtpa. The cancellation of the elastomers project will result in a capacity reduction of 0.35m mtpa, and capex savings of USD1.3bn. Management indicates that it remain committed to the rest of the petrochemical projects that it had undertaken, namely the polymers and glycols projects. The cancellation of the elastomers project is not expected to have any impact on the commencement date for PRPC Polymers and PRPC Glycols which is scheduled to start in Comments: While the cancellation of the elastomers project is invariably a negative for PCHEM s longer-term growth prospects, we are not unduly worried as the projects represent only a small proportion of the projected capacity of its proposed petrochemical complex in RAPID. PCHEM remains committed to the remaining two projects in RAPID (Glycols and Polymers plants), which has a budgeted capex of USD2.6bn and a total capacity of 3.15m mtpa. In addition, the cancellation of the elastomers project has no bearing on our earnings forecasts for PCHEM, as it is not expected to contribute any earnings within the forecast horizon. We continue to have a SELL rating on PCHEM with a TP of RM4.66 (17x 2016E EPS), premised on the expected margin compression arising from the weaker petrochemical prices amid lower plant utilisation (due to statutory turnarounds and start-up of SAMUR plant). Stronger MYR is a headwind for the stock in view of its USD-denominated pricing for petrochemical products. Page 2 of 7

3 Outside Malaysia US stocks little changed as banks gain, technology shares drop US stocks ended little changed, as investors assessed earnings releases and data showing the labor market is improving with little pickup in inflation. The S&P 500 added less than 0.1% to 2, The Dow Jones Industrial Average increased by 18 points to 17, Core consumer prices in US cool in sign pickup transitory The cost of living in the US excluding food and fuel rose less than forecast in March, bearing out Federal Reserve Chair Janet Yellen s forecast that the recent pickup would prove fleeting. The core consumer price index increased 0.1% mom, the smallest gain since August, after consecutive 0.3% gains the prior two months, a Labor Department report showed. The median forecast surveyed by Bloomberg called for a 0.2% gain. Jobless claims in US decline to match lowest since 1973 The number of Americans filing applications for unemployment benefits unexpectedly declined last week to match a more than 42-year low, indicating employers are upbeat about an economy that bogged down in 1Q16. Jobless claims dropped by 13,000 to 253,000 in the week ended April 9, equaling the level in March that was the lowest since November 1973, a report from the Labor Department showed. Euro area consumer prices stagnate in March after revision A renewed decline in euro area consumer prices has proved short-lived after data for March was revised to show stagnation. The inflation rate in the 19-nation bloc was unchanged, the European Union s statistics office said, revising an earlier reading of minus 0.1%. Singapore adopts 2008 crisis policy as growth grinds to halt Singapore s central bank unexpectedly eased its monetary stance, adopting a policy last used during the 2008 global financial crisis, as economic growth in the trade-dependent city-state ground to a halt. The Monetary Authority of Singapore moved to a neutral policy of zero percent appreciation in the exchange rate. GDP posted zero expansion on an annualized basis in 1Q16 compared with 4Q15, the trade ministry said in a separate report, in line with the median forecast surveyed by Bloomberg. Australian unemployment falls to 2-1/2 year low Australia s jobless rate unexpectedly fell to the lowest level in two-and-ahalf years in March, reflecting a lift in business confidence and signaling the central bank is unlikely to ease policy in the near-term. Unemployment fell to 5.7% from 5.8%, compared to median forecast of 5.9% in a Bloomberg survey. IEA sees oil oversupply almost gone in second half on shale drop Global oil markets will move close to balance in 2H16 as lower prices take their toll on production outside OPEC, the International Energy Agency (IEA) said. The world surplus will diminish to 200,000bpd in 2H16 from 1.5m in 1H16, the agency said in a report. Supplies outside OPEC will decline by about 700,000bpd this year to an average of 57m a day. Oil slips before Doha talks as IEA sees global market balancing Oil slipped a second day as a meeting of major crude producers in Doha this weekend is seen having minimal impact on supplies. Brent for June settlement fell US$0.34 (0.8%) to US$43.84 a barrel. Source: Bloomberg (Lim Yee Ping; ; yeeping.lim@affinhwang.com) Page 3 of 7

4 Market Summary Table 1: Off Market transactions Shares Price (RM) Vol (m) Val (RMm) Type* BJAUTO D PWORTH D KERJAYA D Source: Bloomberg Table 2: Shares Buyback/ Resale Company* Date Units Treasury Transaction SEM 14-Apr 280,000 57,307,600 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 Source : Bursa Malaysia Page 4 of 7

5 Fig 5: Shareholding change Substantial Shareholder Date Transaction Units Company EPF 11-Apr-16 Disposed 1,472,400 AFG EPF 11-Apr-16 Acquired 298,900 AMBANK EPF 11-Apr-16 Disposed 862,500 ARMADA Ombak Damai Sdn Bhd 7-14/4/2016 Disposed 30,000,000 ARMADA EPF 11-Apr-16 Acquired 16,700 BIMB Amanahraya Trustees Bhd 11-Apr-16 Disposed 1,453,600 BJAUTO EPF 11-Apr-16 Disposed 580,000 BJAUTO EPF 11-Apr-16 Acquired 126,900 BURSA EPF 6-11/4/2016 Acquired 7,117,600 CIMB EPF 6-11/4/2016 Disposed 4,755,631 CIMB EPF 11-Apr-16 Acquired 500,000 CMSB EPF 11-Apr-16 Acquired 899,300 DIGI EPF 11-Apr-16 Disposed 2,471,500 DRBHCOM EPF 11-Apr-16 Acquired 834,600 GENP EPF 11-Apr-16 Disposed 214,000 GENP EPF 11-Apr-16 Disposed 31,700 GTRONIC EPF 11-Apr-16 Acquired 9,200 HLBANK EPF 11-Apr-16 Acquired 1,070,000 IGBREIT EPF 11-Apr-16 Disposed 446,500 IHH EPF 11-Apr-16 Disposed 118,000 IJMPLNT Lembaga Tabung Haji 7-13/4/2016 Disposed 1,896,700 IJM EPF 11-Apr-16 Acquired 976,800 IOICORP Vertical Capacity Sdn Bhd 11-12/4/2016 Acquired 490,600 IOICORP EPF 11-Apr-16 Disposed 161,100 IOIPG Amanahraya Trustees Bhd 11-Apr-16 Acquired 470,400 KLCC EPF 11-Apr-16 Acquired 324,700 KLK Amanahraya Trustees Bhd 11-Apr-16 Acquired 328,300 KLK EPF 11-Apr-16 Disposed 600,000 KLK EPF 8-Apr-16 Disposed 2,000,000 MALAKOFF EPF 7-11/4/2016 Acquired 5,991,334 MAXIS EPF 8-Apr-16 Disposed 1,000,000 MAXIS EPF 11-Apr-16 Acquired 2,325,800 PBBANK EPF 11-Apr-16 Disposed 200,000 PBBANK EPF 11-Apr-16 Disposed 352,200 PETGAS EPF 11-Apr-16 Acquired 3,500,000 SKPETRO Amanahraya Trustees Bhd 12-Apr-16 Acquired 88,400 SUNREIT Amanahraya Trustees Bhd 11-Apr-16 Disposed 132,100 SUNREIT EPF 11-Apr-16 Acquired 64,600 TAKAFUL EPF 8-11/4/2016 Disposed 32,400 TAKAFUL Amanahraya Trustees Bhd 11-Apr-16 Acquired 570,800 TM EPF 11-Apr-16 Disposed 3,000,000 TM EPF 7-11/4/2016 Acquired 9,904,300 TNB Amanahraya Trustees Bhd 8-Apr-16 Disposed 1,400,000 TNB Amanahraya Trustees Bhd 7-Apr-16 Disposed 3,219,200 TNB EPF 7-11/4/2016 Disposed 13,415,500 TNB EPF 11-Apr-16 Disposed 63,200 UMWOG EPF 11-Apr-16 Disposed 37,200 UOADEV EPF 11-Apr-16 Disposed 6,600 YINSON Source: Bursa Malaysia Page 5 of 7

6 Fig 6: Dividend Entitlement Stocks Particulars DPS (sen) Announce Ex-Date Lodge Payment MAGNA Interim Dividend Apr Apr Apr-16 4-May-16 MISC Final Dividend Mar Apr Apr May-16 PENERGY Special Dividend Feb Apr Apr May-16 OSK Final Dividend Mar Apr Apr May-16 PJDEV Final Dividend Mar Apr Apr-16 9-May-16 SIME Interim Dividend Feb Apr Apr-16 6-May-16 MYEG Interim Dividend Feb Apr Apr May-16 DLADY Interim Dividend Feb Apr Apr May-16 KIMHIN Interim Dividend Mar Apr Apr May-16 YNHPROP 1 for 25 distribution of treasury shares - 13-Apr Apr Apr May-16 CCB Final Dividend Feb Apr Apr May-16 GCE First and Final Dividend Apr Apr Apr May-16 PRLEXUS Interim Dividend Apr Apr Apr May-16 UTDPLT Special Dividend Feb Apr Apr May-16 UTDPLT Final Dividend Feb Apr Apr May-16 VS Second Interim Dividend Mar Apr Apr May-16 CSCENIC Interim Dividend Feb Apr-16 3-May May-16 LCTH Final Dividend Apr Apr-16 3-May May-16 CARLSBEG Final Dividend Feb-16 3-May-16 5-May May-16 SAMCHEM Final Dividend Apr-16 3-May-16 5-May May-16 UNISEM Final Apr-16 3-May-16 5-May May-16 MALAKOF Final Dividend Mar-16 5-May-16 9-May May-16 CENTURY Final Dividend Mar-16 9-May May May-16 HIGHTEC Final Dividend Mar-16 9-May May May-16 ZHULIAN First Interim Dividend Apr-16 9-May May-16 3-Jun-16 POHUAT Final Dividend Mar May May May-16 BINTULU Final Dividend Feb May May May-16 CMSB Final Dividend Apr May May May-16 PPB Final Dividend Feb May May May-16 TSTORE First and Final Dividend of 3.75 sen Jan May May-16 9-Jun-16 TASEK Final dividend of 50% single tier Feb May May May-16 TASEK Preference dividend of 6% single tier Feb May May May-16 WILLOW Final Dividend Feb May May May-16 NESTLE Final Dividend Feb May May-16 2-Jun-16 AJIYA Final Dividend Mar May May-16 7-Jun-16 KKB First and Final Dividend Apr May May Jun-16 AIRASIA First and Final Dividend Mar May May Jun-16 CCK First and Final Dividend Apr May May Jun-16 ECS Final Dividend Feb May-16 2-Jun Jun-16 LUXCHEM Final Dividend Mar May-16 2-Jun Jun-16 APEX Final Dividend Feb-16 1-Jun-16 3-Jun Jun-16 CYL Second Interim Dividend Mar-16 1-Jun-16 3-Jun Jun-16 KOSSAN Final Dividend Mar-16 1-Jun-16 3-Jun-16 5-Jul-16 MEDIA Final Dividend Mar-16 1-Jun-16 3-Jun Jun-16 SHANG Final Dividend Feb-16 2-Jun-16 4-Jun Jun-16 CCM Final Dividend Feb-16 6-Jun-16 8-Jun Jun-16 TIENWAH Final Dividend Feb-16 7-Jun-16 9-Jun Jun-16 KEN First and Final Dividend Mar-16 9-Jun Jun Jun-16 KSENG Final Dividend Apr-16 9-Jun Jun-16 1-Jul-16 KSENG First and Final Dividend Apr Jun Jun Jun-16 PRTASCO Final Dividend Mar Jun Jun Jun-16 GTRONIC Final Dividend Apr Jun Jun-16 4-Jul-16 GTRONIC Special Dividend Apr Jun Jun-16 4-Jul-16 KIANJOO First and Final Dividend Mar Jun Jun Jun-16 LEONFB Final Dividend Apr Jun Jun Jul-16 DKSH Final Dividend Apr Jun Jun Jul-16 CSCSTEL Final Dividend Feb Jun Jun Jul-16 GENM Final Dividend Apr Jun Jun Jul-16 GENP Final Dividend Apr Jun Jun Jul-16 GENTING Final Dividend Apr Jun Jun Jul-16 IHH First and Final Dividend Mar Jun Jun Jun-16 METROD Final Dividend Feb Jun Jun Jul-16 PRG Final Dividend Apr Jun Jun Jul-16 BLDPLNT First and Final Dividend Apr Jun-16 1-Jul Jul-16 SCABLE Final Dividend Mar Jun-16 1-Jul Jul-16 CANONE First and Final Dividend Apr-16 5-Jul Jul Jul-16 KPS Final Dividend Mar Jul Jul Aug-16 CRESNDO Final Dividend Mar Aug Aug Aug-16 KMLOONG Final Dividend Mar Aug Aug Aug-16 Source: Bursa Malaysia Page 6 of 7

7 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 7 of 7