JF Apex Securities Berhad Newsletter Daily As Highlights 27 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 27 January 2014 Malaysia News & Highlights Property Transactions Likely To Decline Amid Stringent Loan Conditions QL Resources to raise RM300mil Samalaju Port conveyor belt job draws bids from 13 firms Yinson proposes cash call to raise up to RM500mil Maica may copy Eco World boon Sunway REIT Q2 pre-tax profit rises to RM62mil E&O unveils its latest luxury condo project More oil, gas find for Sumatec? Silk Holdings secures RM23.28mil contract extension from ExxonMobil Foreign News S&P 500 Falls Most for Week Since 12 on Emerging Markets German Stocks Drop Most Since June as Currencies Slump Asian Stocks Drop for Fourth Straight Week on Valuations China Stocks Rise to Three-Week High as Property Companies Rally Indian Stocks Drop From Record as Ranbaxy Plunges on U.S. Ban Emerging-Market VIX Surges Most in Two Years on Selloff FBM KLCI Daily Chart Closing: Support: 1800 Resistance: 1840 Please read carefully the important disclosures at end of this publication

2 Market Thoughts U.S. stocks fell sharply and Treasuries rallied on Friday, with the Dow Jones Industrial Average tumbling tripledigits for a second session and posting its worst week since November 2011, as investors pulled money from emerging markets and other assets viewed as risky. Similarly, European equities closed sharply lower as a large sell-off in emerging-market currencies spooked investors. On the local market, the FBM KLCI fell 5.74 points to points. Following the bearish performance in the US, the index might break the support level of 1800 points. Stocks in focus are: Yinson, as the group plans to undertake a renounceable rights issue to raise up to RM500m and one-to-two share split; Silk Holdings, after the group has obtained RM23m contract for the provision of anchor handling tug supply vessels; Sumatec, the group is believed to have found a larger pool of oil & gas at its oil field in Khazakhstan according to the local media. Malaysia News & Highlights Property Transactions Likely To Decline Amid Stringent Loan Conditions Property transactions are likely to decline this year amid cautious sentiment and stringent housing loan regulations by financial institutions. Real Estate and Housing Developers Association (REHDA) Penang Chairman, Datuk Jerry Chan said the property market was likely to register a decline in both sales and value. The market is likely to see a 20 per cent decline in value, he said after briefing reporters on the three-day Malaysia Property Exhibition (MAPEX) 2014 to be held here beginning Feb 2. (Source: Bernama) QL Resources to raise RM300mil QL Resources Bhd aims to raise up to RM299.5mil from the issuance of its 166,403,924 rights shares at RM1.80 per share. Managing director Chia Song Kuan said 70% or RM220mil from the gross proceeds would be used to pay bank borrowings. The balance RM70mil will be used for the capital expenditure of the marine and livestock division, he told reporters after the company s EGM. (Source: The Star) Samalaju Port conveyor belt job draws bids from 13 firms Thirteen companies and consortiums have bid for the package to construct a conveyor belt system to deliver raw materials from Samalaju Port to energy-intensive industries in Samalaju Industrial Park in Bintulu, Sarawak. Most of them are local companies having tie-ups with foreign partners due to the high technology involved in the project, said Samalaju Industrial Port Sdn Bhd (SIPSB)senior manager for operations Mat Shalleh Mohd Etli. (Source: The Star) Yinson proposes cash call to raise up to RM500mil Yinson Holdings Bhd has proposed a cash call to raise up to RM500mil and shrink its gearing levels, confirming a report by StarBiz earlier this week. It will involve a renounceable rights issue, an increase in its authorised share capital from 500 million shares to one billion shares, and a one-to-two share split, the company said in a stock exchange filing. (Source: The Star) Maica may copy Eco World boon Tan Sri Robert Tan Hua Choon s Malaysia Aica (Maica) Bhd looks increasingly likely to follow in the footsteps of Eco World Development Group Bhd (previously Focal Aims Bhd) after its major shareholders received a buyout offer from Ter Equity Sdn Bhd. Ter Equity is owned by Datuk Ter Leong Yap, who also owns some 17 per cent of Maica prior to the takeover offer. On January 22, Ter Equity entered into an unconditional share sale agreement with four Maica shareholders, namely Robert Tan, Tan Ching Ching, Tan Han Chuan and Wong Hok Yim, to acquire million shares in the company for RM33.39 million. (Source: Business Times) Sunway REIT Q2 pre-tax profit rises to RM62mil Sunway Real Estate Investment Trust s (Sunway REIT) pre-tax profit for the second quarter ended Dec 31, 2013 rose to RM62.03mil from RM56.12mil in the same quarter last year. Its revenue increased to RM110.31mil from RM105.82mil previously. In a filing with Bursa Malaysia yesterday, Sunway REIT said the retail segment

3 registered a lower gross revenue of RM74.9mil due to the closure of Sunway Putra Mall since May 2013 for major refurbishments. (Source: The Star) E&O unveils its latest luxury condo project Eastern & Oriental Bhd (E&O) has launched its latest downtown condominium project The Mews. When completed in 2017, it will be one of three high-rise residential developments on Jalan Yap Kwan Seng in Kuala Lumpur. There will be three residential projects along that stretch of about 500m. The Mews starts at RM1,700- RM1,800 per sq ft (psf). It will be among the highest in terms of price point among the three on-going projects there currently. (Source: The Star) More oil, gas find for Sumatec? Sumatec Resources Bhd is believed to have found a larger pool of oil and gas at its oil field in Kazakhstan, people familiar with the matter said yesterday. A Sumatec spokesman declined to comment as the company is still getting feedback from its people in the Central Asian country. We are evaluating the data and with the rollout of commercial production soon, we will make an announcement to the stock exchange once we have digested the new information, the spokesman added. (Source: Business Times) Silk Holdings secures RM23.28mil contract extension from ExxonMobil Silk Holdings Bhd has accepted the award for a RM23.28mil contract extension by ExxonMobil Exploration and Production Malaysia Inc via its unitjasa Merin (Malaysia) Sdn Bhd. In a filing to Bursa Malaysia on Friday, the group said the contract is for the provision of two 60MT Anchor Handling Tug Supply Vessels, which will commence on Feb 2 and Feb 5 for a one year period. (Source: The Star) Foreign News S&P 500 Falls Most for Week Since 12 on Emerging Markets U.S. stocks fell for the week, giving benchmark indexes their biggest losses since 2012, as a selloff in emergingmarket currencies and signs of weakness in China spurred concern that global growth will slow. Caterpillar Inc., General Electric Co. and DuPont Co. tumbled more than 5.7 percent to lead declines in the Dow Jones Industrial Average. Cliffs Natural Resources Inc. lost 14 percent as raw-materials producers and industrial companies tumbled more than 3.9 percent. International Business Machines Corp. slid 5.5 percent as revenue declined for a seventh consecutive quarter amid weaker demand for servers. Netflix Inc. surged 17 percent as it projected customer growth that topped analysts estimates. German Stocks Drop Most Since June as Currencies Slump German stocks plunged the most in seven months, with the DAX Index completing a weekly loss, amid a selloff in emerging-market currencies. Adidas AG fell the most in more than two years after Deutsche Bank AG lowered its estimates for the sporting-goods maker s earnings in 2014 and Bayerische Motoren Werke AG and Daimler AG followed European carmakers lower, each losing more than 3 percent. Celesio AG rallied to its highest price since May 2010 after McKesson Corp. agreed to buy majority owner Franz Haniel & Cie. s stake in the company. Asian Stocks Drop for Fourth Straight Week on Valuations Asian stocks fell, with the regional benchmark index posting its longest streak of weekly losses in more than 1 1/2 years, amid concern earnings growth will miss estimates on signs of weakness in China s economy. Honda Motor Co. fell 2.4 percent in Tokyo after the yen strengthened the most in four months yesterday, dragging Japanese exporters lower. The Reject Shop Ltd. slumped 32 percent in Sydney after profit at the discount retailer missed estimates. Newcrest Mining Ltd., an Australian gold producer, rose 3.8 percent after the precious metal surged in New York. China Stocks Rise to Three-Week High as Property Companies Rally China s benchmark stock index rose to the highest level in three weeks as money-market rates fell and property companies rallied on improving earnings prospects. Poly Real Estate Group Co. surged to a three-week high and real-estate companies jumped the most among industry groups after Shenyin & Wanguo Securities Co. said

4 developers may rally 20 percent from current levels. Guirenniao Co., which makes sports apparel, soared 44 percent on its first day of trading in Shanghai. Jiangxi Copper Co. led a rally for material producers. Indian Stocks Drop From Record as Ranbaxy Plunges on U.S. Ban Indian stocks dropped for the first time this week as some investors bet the rally in the benchmark index to a record has outpaced the outlook for earnings growth. Ranbaxy Laboratories Ltd., the nation s largest drugmaker, tumbled 19 percent after regulators banned it from producing or selling drug ingredients for the U.S. market from a fourth plant in India. Power-equipment maker Bharat Heavy Electricals Ltd. was the worst performer on the S&P BSE Sensex. Housing Development Finance Corp. slid the most in a week. Emerging-Market VIX Surges Most in Two Years on Selloff Equity volatility from India to Brazil and Turkey jumped the most in two years as turmoil spread across global markets amid a selloff in developing-country currencies and growing concern over China s economy. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index rose 40 percent to last week, the biggest increase since September 2011, according to data compiled by Bloomberg. Bearish bets outnumber bullish ones on the underlying exchange-traded fund by the most since July with about 60 percent more puts than calls. (Source: Bloomberg) Futures Kuala Lumpur Composite Index Futures Crude Palm Oil *As at 8.00am 27 January 2014

5 Technical Review: FBM KLCI Index Closing: Support: (S1) 1800 / (S2) 1775 Resistance: (R1) 1840 / (R2) 1882 Comments: The FBM KLCI fell 5.74 points to points. Technical indicators are lower with the RSI is declining towards the oversold zone while the MACD continues to decline below its signal line. Following the record high in late Dec, the index pulled back after hitting its upper channel and resistance of 1882 points. After the recent selldown, the index has tested the lower uptrend channel and is consolidating above the psychological support of 1800 points and the 100-day moving average. FKLI Spot Month Contract FKLI Closing: 1797 Support: (S1) 1775 / (S2) 1760 Resistance: (R1) 1800 / (R2) 1840 Comments: The spot-month FKLI futures lost 7.00 points to 1797 points. The contract represents 5.57 points discount to the cash market compared to 4.31 points discount in the previous trading day. Technical indicators are lower with the RSI is moving closer to the oversold zone while the MACD is declining below its signal line. We expect the contract to consolidate above the middle uptrend channel and 100-day moving average before resuming its uptrend.

6 3 rd Month Crude Palm Oil Contract CPO Closing: RM2591 Support: (S1) 2490 / (S2) 2400 Resistance: (R1) 2600 / (R2) 2690 Comments: The 3rd month CPO futures contract fell RM12 to RM2591. Technical indicators are flat with the MACD hovered above its signal line while the RSI is moving flat in the neutral zone. The rally since October lifted the contract to a 1-year high and has now come to a halt. The contract came off the RM2490 level supported by the 100-day moving average. The uptrend channel since August is intact and we expect the rebound to re-test the resistance level of RM2600.

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) PJ Office: Mervyn Wong (ext 363) Mohd Hanif Wan Said (ext 111) 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)