JF Apex Securities Berhad Newsletter Daily As Highlights 3 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 3 December 2013 Malaysia News & Highlights Tenaga: Commercial, industrial consumers power bills to rise by 16.85% KKB Engineering bags RM15.9m Petronas Dagangan contract Ekovest subsidiary issues RM2.3b Sukuk for DUKE highway BToto shelves listing of business trust in Singapore Gabungan AQRS to build Tropicana Metropark for RM173m Sapura Resources posts turnaround profit of RM1.5mil Sime Darby in RM236m deal to boost motor biz presence in Australia Patimas plans to regularise position Dr M steps down as Petronas adviser Highland Towers land for sale, 20 years after one of Malaysia s worst disasters Kidex awarded controversial Damansara-Puchong skyway Green light for XL s merger with Axis Foreign News U.S. Stocks Extend Drop in Final Hour Amid Retail Data European Stocks Drop as Spanish Manufacturing Declines Emerging-Market Stocks Decline as Ukraine Yields Advance China s Move to End IPO Halt Sparks Rally in Finance Stocks Triumph for a Third Month While Bullion Tumbles Bonds, Gold Drop on Manufacturing While S&P 500 Declines KLCI Daily Chart Closing: Support: 1800 Resistance: 1826 FBM KLCI Index Change Closed FBM KLCI % 1, FBM ACE % 5, KLCI Top Movers Leading Change Closed PPB % PETGAS % HLFG % SKPETRO % 4.45 GENTING % Lagging Change Closed PETDAG % KLK % UMW % FGV % 4.38 CIMB % 7.55 KLCI Top Volume Stocks Change Closed XOX % 0.15 SUMATEC % 0.29 TIGER % 0.23 UTOPIA % 0.09 SUMATEC-WB % 0.23 EAH % 0.22 AT % 0.12 L&G % 0.40 INSAS % 0.95 INGENCO % 0.07 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 % 24, 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) % 3, Please read carefully the important disclosures at end of this publication

2 Market Thoughts U.S. stocks declined on Monday, with the Dow and S&P 500 retreating after an eight-week winning stretch, as investors took a cautious stance ahead of Friday's jobs report while considering a mixed start to the holiday shopping season and an upbeat gauge of manufacturing. Similarly, European equities closed lower on Monday, as Spanish shares sunk on disappointing manufacturing data, while retailers struggled on the first day of December trade. On the local market, the FBM KLCI rose 5.43 points to points. The index could be negative today, tracking the losses in the US and Europe. We expect the index to remain range bound above the support level of 1800 points. Stocks in focus are: a) Tenaga Nasional Berhad, after the electricity tariffs in Peninsular Malaysia will increase next year; b) Steel and glove makers, being the heavy users of electricity, may come under selling pressure following the power hike; c) Berjaya Sports Toto as the group announced that it is canceling its plans to list its Sports Toto Malaysia as a business trust on the Singapore Stock Exchange; d) Gabungan AQRS, after the group won a RM173m job to build serviced apartments in Subang Jaya. Malaysia News & Highlights Tenaga: Commercial, industrial consumers power bills to rise by 16.85% Commercial consumers electricity bills will be increased by an average of 16.85%, ranging from 1.2% to about 18%, with effect from Jan 1. Tenaga Nasional said in a statement to Bursa Malaysia on Monday that industrial consumers would experience an average increase of 16.85%, ranging from 0.9% to about 17%. As for special industrial tariff (SIT) consumers, their bills would increase by about 19%. This is in line with the government s effort to gradually reduce subsidies to industries. Even with this increase, SIT consumers will continue to enjoy discounted tariff rates, as compared to the rates for normal Industrial consumers, said Tenaga. The power giant said the average electricity tariff in Peninsular Malaysia would be increased by 4.99 sen per kwh or 14.89% from the current average of sen/kwh to sen/kwh. (Source: The Star) KKB Engineering bags RM15.9m Petronas Dagangan contract KKB Engineering Bhd has secured a RM15.90mil contract to fabricate and recondition liquefied petroleum gas (LPG) cylinders from Petronas Dagangan Bhd. It said on Monday it has accepted the price agreement for the contract for one year, effective from December 2013 which would include an option to extend for another year. The estimated value for the abovementioned supply and delivery period is worth approximately RM15.90mil, it said. (Source: The Star) Ekovest subsidiary issues RM2.3b Sukuk for DUKE highway Ekovest Bhd s subsidiary Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) has issued RM2.30bil in nominal value Sukuk Musharakah and RM180mil in nominal value Junior Bonds. It said on Monday the proceeds would be used to redeem Kesturi s existing RM820mil nominal value Islamic medium term notes and existing RM50mil nominal value redeemable secured junior bonds. Ekovest said the proceeds would also be used to fund the initial deposit in the finance service reserve account maintained under the Sukuk Programme. (Source: The Star) BToto shelves listing of business trust in Singapore Berjaya Sports Toto Bhd (Btoto) has shelved its plans to list its subsidiary Sports Toto Malaysia Sdn Bhd as a business trust on the Singapore Stock Exchange (SGX). It said on Monday that having considered the current challenging market conditions and the poor performances of listed yield stocks such as real estate investment trusts (REIT) and other business trusts in Singapore, the board has decided not to proceed with the proposed listing of Sports Toto Malaysia Trust (STM-Trust). The board will continue to act in the best interest of BToto

3 and its shareholders and will remain conscious and open to ideas that can enhance shareholders value on a sustained basis, it said. (Source: The Star) Gabungan AQRS to build Tropicana Metropark for RM173m Gabungan AQRS Bhd has secured a RM173mil contract to undertake a residential property project, called Tropicana Metropark, in Subang Jaya. The integrated engineering and construction services provider said on Monday it had received the letter of award from the architect, GDP Architects Sdn Bhd for the project. The project would comprise of 28-storey service apartments complete with infrastructure and amenities such as a multipurpose hall, swimming pool, gymnasium, and multi-level car park. Gabungan AQRS said with the new contract, its construction order book had increased to RM1.3bil which would last until (Source: The Star) Sapura Resources posts turnaround profit of RM1.5mil Sapura Resources Bhd posted a turnaround profit of RM1.5mil from a net loss of RM3.8mil for its third quarter ended Oct Its revenue rose 6.8% to RM8.8mil from RM8.2mil a year ago while earnings per share stood at 1.12 sen against loss per share of 2.78 sen previously. For its nine months, the group posted a profit of RM4.3mil against a net loss of RM1.7mil a year ago while revenue was up 43% to RM27mil from RM19mil a year ago. In a filing to Bursa Malaysia on Monday, the group said its revenue for the quarter was mainly from contributions from its aviation services. (Source: The Star) Sime Darby in RM236m deal to boost motor biz presence in Australia Sime Darby Bhd s unit is buying stakes in two automobile related companies in Australia to expand its presence and also acquiring three properties there for a total of A$80.69mil (RM235.34mil). Sime Darby said on Monday its unit Sime Darby Motors Wholesale Australia Pty Ltd had entered into a conditional share and unit sale deed with to acquire a 70% equity stake in LMM Holdings Pty Ltd and 70% of units in the Brisbane BMW Unit Trust (BBUT) for A$22.69mil (RM66.48mil) Sime Darby Motors Wholesale Australia also entered into property sale and purchase agreements to acquire three properties for A$58mil (RM169.86mil) which are necessary for the operations of the businesses LMMH is a private company. As trustee of the BBUT, LMM effectively operates BBUT s BMW, MINI and Lamborghini motor dealership businesses in Brisbane, Australia. (Source: The Star) Patimas plans to regularise position Patimas Computers Bhd has proposed to undertake a regularisation scheme to regularise its financial position. It also said its appeal to Bursa Malaysia on the latter s decision to delist the company was still pending approval. To recap, Patimas which is a PN17 company failed to submit its regularisation plans within the required 12 months since its PN17 status. It slipped into PN17 after its auditors expressed a disclaimer of opinion regarding its financial statements for the period from Jan 1, 2011 to March 31, It had announced an audited net loss of RM86.5mil for that period. (Source: The Star) Dr M steps down as Petronas adviser Former prime minister Tun Dr Mahathir Mohamad has relinquished his post as adviser to national oil and gas company Petroliam Nasional Berhad (Petronas), effective Sunday. Dr Mahathir, 88, said he had handed his resignation letter to Prime Minister Datuk Seri Najib Razak on Friday. Dr Mahathir, however, said he will remain as adviser to Proton Holdings Bhd and other entities, including the Langkawi Development Authority. (Source: Business Times) Highland Towers land for sale, 20 years after one of Malaysia s worst disasters AmBank (M) Bhd is undertaking a tender exercise involving the sale of bungalow lots and residential units in Highland Towers, 20 years after a major landslide in the area triggered one of Malaysia s worst disasters. A bank official dealing with the matter declined to state the reasons it was calling for the tender, saying it would be in contravention of the Banking and Financial Institutions Act 1989 or Bafia to do so. We cannot disclose the information on the sale of the properties, but interested parties intending to bid for it can purchase the information memorandum from the bank for RM200 per copy. The memorandum would spell out the relevant information and particulars of the properties as well as the terms and conditions of the sale, she told StarBiz. (Source: The Star)

4 Kidex awarded controversial Damansara-Puchong skyway The controversial, privately funded 14.9km Kinrara Damansara Skyway (Kidex Skyway) has received the government s go ahead, said the concessionaire Kidex Sdn Bhd. The company, reported to be controlled by Umno lawyer Datuk Hafarizam Harun and the wife of former Chief Justice Tun Zaki Azmi, said yesterday it has been awarded the Kidex Skyway project that will link Damansara and Puchong. (Source: The Edge) Green light for XL s merger with Axis The merger and acquisition (M&A) between PT XL Axiata Tbk (XL), a 66.5%-owned subsidiary of Axiata Group Bhd, and PT Axis Telekom Indonesia has been approved by Indonesia s Ministry of Communications and Informatics (MoCI). (Source: The Edge) Foreign News U.S. Stocks Extend Drop in Final Hour Amid Retail Data U.S. stocks fell, with the Standard & Poor s 500 Index extending declines in the final hour of trading, amid data showed manufacturing unexpectedly climbed last month and reports on holiday retail sales. The S&P 500 dropped 0.3 percent to 1, at 4 p.m. in New York, after earlier rising as much as 0.2 percent. The Dow Jones Industrial Average lost points, or 0.5 percent, to 16, About 5.8 billion shares changed hands on U.S. exchanges today, 4.8 percent below the three-month average. European Stocks Drop as Spanish Manufacturing Declines European stocks fell, following three months of gains, as a report showed that Spanish manufacturing unexpectedly declined last month. The Stoxx Europe 600 Index fell 0.3 percent to at the close of trading in London. The equity gauge climbed 0.9 percent in November, extending this year s rally to 16 percent, as central banks around the world committed to leave interest rates near record lows. Emerging-Market Stocks Decline as Ukraine Yields Advance Emerging-market stocks dropped for the first time in four days as Petroleo Brasileiro SA led energy producers lower. Ukraine s bond yields jumped to a record after police cracked down on the biggest protests since The MSCI Emerging Markets Index fell 0.5 percent to 1, Petrobras sank 9.2 percent as Brazil failed to meet a request by the company to disclose a clear policy for phasing out fuel subsidies that have cut earnings. The ChiNext Index of smaller companies slid on concern China s plan to restart initial public offerings will divert funds from existing shares. Ukraine s yields surged on President Viktor Yanukovych s decision to halt talks on closer European Union ties. China s Move to End IPO Halt Sparks Rally in Finance China s move to end a 14-month ban on initial public offerings and allow the sale of preferred shares led to a rally in financial stocks as investors bet the measures will boost fees for brokerages and ease banks funding. The IPO freeze will be lifted following new rules that pave the way for a switch to a U.S.-style registration system and letting investor demand determine pricing, underscoring Communist Party leaders pledge to allow markets to play a decisive role in allocating resources. China, the world s largest IPO market in 2010, hasn t had a new listing since October 2012 amid a crackdown on fraud and misconduct. Stocks Triumph for a Third Month While Bullion Tumbles Global stocks beat all assets for a third month in November, the longest winning streak since 2009, on signs that economic growth is accelerating. Commodities extended declines as gold fell the most since June. The MSCI All-Country World Index of equities in 45 markets rose 1.5 percent including dividends and the Standard & Poor s 500 Index reached a record as China pledged to expand economic freedoms, the European Central Bank cut interest rates and speculation increased the Federal Reserve will delay reducing stimulus. The U.S. Dollar Index advanced 0.6 percent and the S&P GSCI Total Return Index of 24 commodities fell 0.8 percent. Bonds of all types lost 0.16 percent on average, according to Bank of America Merrill Lynch s Global Broad Market Index. Bonds, Gold Drop on Manufacturing While S&P 500 Declines Government bonds fell around the world after manufacturing grew more than forecast in the U.S., euro area and China. Gold sank and U.S. stocks retreated while the dollar strengthened against most major peers.

5 Treasury 10-year note yields gained five basis points to 2.80 percent by 4:30 p.m. in New York after German 10-year bund yields climbed five basis points and rates on similar-maturity U.K. gilts jumped eight basis points. Gold dropped more than 2 percent, while oil climbed and natural gas extended its longest rally in more than seven years. The Standard & Poor s 500 Index (SPA) fell 0.3 percent to 1, New Zealand s currency rose against all 16 major peers and the dollar climbed versus 12. (Source: Bloomberg) Futures Kuala Lumpur Composite Index DEC JAN FEB MAY CHANGE OPEN 1, , , ,810.0 High 1, , , ,813.0 Low 1, , , ,808.0 Settle 1, , , ,813.0 Volume 3, O.I *As at 8.00am 3 December 2013 Futures Crude Palm Oil DEC JAN FEB MAR CHANGE OPEN 2, , , ,654.0 High 2, , , ,660.0 Low 2, , , ,634.0 Settle 2, , , ,647.0 Volume , , ,132.0 O.I. 1, , , ,843.0 Technical Review: FBM KLCI Index Closing: Support: (S1) 1800 / (S2) 1780 Resistance: (R1) 1820 / (R2) 1826 Comments: The FBM KLCI gained 5.43 points to points. Technical indicators are positive with the RSI rising towards the overbought zone while the MACD crossed above 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 1800 points and resistance of 1820 points.

6 Spot Month Contract Closing: 1819 Support: (S1) 1775 / (S2) 1750 Resistance: (R1) 1828 / (R2) 1834 Comments: The spot-month futures rose 7.50 points to 1819 points. The contract represents 0.85 points premium to the cash market compared to 1.22 points discount in the previous trading day. Technical indicators are positive with the RSI rising in the neutral zone while the MACD climbed above its signal line. We expect consolidation below resistance level of 1828 points with an upward bias 3 rd Month Crude Palm Oil Contract CPO Closing: RM2643 Support: (S1) 2630 / (S2) 2505 Resistance: (R1) 2755 / (R2) 2820 Comments: The 3rd month CPO futures contract lost RM11 to RM2643. 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 3CCCC226) 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)