MARKET WRAP: WEEK ENDED

20 AUGUST ‘10
Bursa Securities vs Public Mutual’s performance* WEEKLY HIGHLIGHTS
20 Aug'10 13 Aug'10 % chng
FBM KLCI 1,395.02 1,360.15 +2.6  Buoyant regional markets coupled
FBMS Shariah 9,214.94 9,103.74 +1.2
MSCI FEXJ# 452.97 449.29 +0.8
with Malaysia’s higher-than-expected
MSCI World# 282.69 284.58 -0.7 2Q2010 GDP growth helped the FBM
Local Funds KLCI to register a gain of 2.6% to
PSF 0.6726 0.6612 +1.7
PGF 0.4908 0.4848 +1.2
close at a 30-month high of 1,395.0
PIX 0.7082 0.6926 +2.3 points for the week.
PIF 0.5513 0.5410 +1.9
PAGF 0.6812 0.6732 +1.2  Regional markets were generally well-
PRSF 0.6010 0.5894 +2.0
PBF 0.7437 0.7410 +0.4
supported on expectations that
P SmallCap 0.9086 0.9027 +0.7 economic growth for regional
PEF 0.3199 0.3154 +1.4 developing economies will remain
PFSF 0.2396 0.2366 +1.3
0.2736
resilient.
PDSF 0.2686 +1.9
PSSF 0.2933 0.2866 +2.3
PSA30F 0.3380 0.3316 +1.9  Looking ahead, the local market is
POGF 0.2630 0.2583 +1.8 anticipated to move in tandem with
PBBF 0.7984 0.7892 +1.2
PBGF 0.7736 0.7583 +2.0
overseas markets as investors continue
Local Islamic Funds to monitor the outlook for global
P Ittikal 0.8369 0.8273 +1.2
PIEF 0.3129 0.3091 +1.2
economic activities.
PIOF 0.3184 0.3175 +0.3
PIBF 0.2813 0.2794 +0.7 STOCKMARKET COMMENTARY
PIDF 0.3195 0.3154 +1.3
PISSF 0.2806 0.2771 +1.3
PISTF 0.2809 0.2777 +1.2 Led by buying of selected blue chips, the
PIOGF 0.2696 0.2666 +1.1
PISEF 0.3109 0.3072 +1.2
FBM KLCI rose on the back of Malaysia’s
PBIEF 0.2593 0.2560 +1.3 better-than-expected 2Q2010 GDP growth
Foreign Funds of 8.9% which was announced on
PFES 0.2715 0.2711 +0.1
PRSEC 0.2395 0.2387 +0.3 Wednesday. Sentiment was also lifted by
PGSF 0.1838 0.1849 -0.6 the rise in selected regional markets. The
PFEDF 0.2359 0.2340 +0.8
PFEBF 0.2050 0.2054 -0.2
FBM KLCI closed at 1,395.0 points to
PGBF 0.2026 0.2029 -0.1 register a gain of 2.6% for the week.
PCSF 0.1732 0.1737 -0.3
PFEPRF 0.2166 0.2146 +0.9
PSEASF 0.2583 0.2560 +0.9 The average daily trading volume
PFECTF 0.2748 0.2742 +0.2 increased to 1.06 bil units from 0.83 bil
PCTF 0.2218 0.2233 -0.7
PFETIF 0.3279 0.3256 +0.7 units while average trading value rose to
PNREF 0.2517 0.2557 -1.6 RM1.6 bil from RM1.2 bil over the same
PAUEF 0.2367 0.2435 -2.8
PFA30F 0.2481 0.2457 +1.0
preceding period.
PBAEF 0.2584 0.2576 +0.3
PBADF 0.2525 0.2507 +0.7 On Wall Street, the Dow remained well-
PBEPEF 0.1771 0.1769 +0.1
PBCPEF 0.1629 0.1628 +0.1 supported early in the week on the back of
PBCAEF 0.3178 0.3155 +0.7 positive 2Q2010 corporate earnings results
PBCAUEF 0.2355 0.2376 -0.9
PBSGA30EF 0.2544 0.2558 -0.5
for selected companies. However, the
PBAREIF 0.2412 0.2406 +0.2 Dow retreated towards the end of the week
PBADBF 0.2889 0.2955 -2.2 following news that U.S. initial jobless
Foreign Islamic Funds
PAIF 0.2581 0.2580 +0.04 claims rose to a 9-month high of 500,000
PIADF 0.2159 0.2154 +0.2 for the week ended 14th August 2010. The
PIABF 0.2233 0.2234 -0.04
PCIF 0.1915 0.1911 +0.2 Dow fell by 0.9% to close at a 4-week low
PIALEF 0.2470 0.2451 +0.8 of 10,214 points over week. Meanwhile,
PBIAEF 0.2059 0.2061 -0.1
PBIASSF 0.1794 0.1793 +0.1
the Nasdaq rose by 0.3% to close at 2,180
Capital Protected Funds points over the week on gains of selected
PCPSPF 1.0813 1.0772 +0.4 tech stocks.
PBCPDF 1.0418 1.0403 +0.1
PBCPRF 1.0655 1.0635 +0.2
#
*Buying Price, in USD

1
 Looking ahead, the local market is
anticipated to continue moving in tandem
In the U.S., housing starts rebounded by with overseas markets as investors
1.7% month-on-month in July after falling continue to monitor the recovery of global
by 8.7% month-on-month in June. economic activities and the normalisation
Meanwhile, the producer price index rose of interest rates.
to 4.2% in July from 2.8% in June mainly
due to higher consumer goods prices while As at 20th August 2010, the local stock
core producer prices index rose to 1.5% market is valued at a P/E of about 15.2x
from 1.1% over the same period. on 2011 earnings, which is lower than its
10-year average P/E ratio of 16.7x. The
Expectations of sluggish economic local market is also supported by a gross
activities in the U.S. caused oil prices to dividend yield of 3.4%, which is
register a weekly decline of 2.6% to close comparable to the 10-year average of
at a 6-week low of US$73.46/brl. 3.8% and exceeds the 12-month fixed
deposit rate of 2.85%.
On the domestic front, Malaysia
registered GDP growth of 8.9% in Other Markets’ Performance
20 Aug'10 13 Aug'10 % chng
2Q2010 compared to 10.1% in 1Q2010 on Dow Jones 10,214 10,303 -0.9
the back of slower export growth. Nasdaq 2,180 2,173 +0.3
However, 2Q2010 GDP came above Nikkei 9,179 9,253 -0.8
market expectations of 8.4% due to a pick- SH Comp 2,642 2,607 +1.4
up in consumer and investment China*, H share 11,780 11,641 +1.2
spending. For 1H2010, GDP registered a MSCI China 6,347 6,301 +0.7
growth of 9.5% compared to a decline of Hong Kong 20,982 21,072 -0.4
Taiwan 7,927 7,892 +0.5
1.7% for the whole of 2009. For the whole South Korea 1,776 1,746 +1.7
year, GDP growth is projected at 7.1%. Singapore 2,936 2,940 -0.1
Thailand 894 862^ +3.7
On the demand side, consumer spending Indonesia 3,118 3,053 +2.1
growth accelerated to 7.9% in 2Q2010 * Hang Seng China Enterprise Index
^ Index as at 11 Aug ’10. Non Business day for 12 & 13 Aug ‘10
from 5.1% in 1Q2010 while investment
spending gained pace to 12.9% from 5.4% Bursa Securities Market Valuations^
over the same period. However, export 20 Aug'10 13 Aug'10 10 yr ave*
growth moderated to 13.8% in 2Q2010 FBM KLCI 1,395.02 1,360.15 -
from 19.3% in 1Q2010 on lower PER'10(x) 18.18 17.76 16.73
PER'11(x) 15.21 14.86 -
electronics and commodity exports. On the
Price/NTA(x) 3.63 3.58 2.39
supply side, the manufacturing sector
3mth InterBk 2.92% 2.91% 3.17%
growth slowed to 15.9% in 2Q2010 from
12mth Fix Dep, % 2.85% 2.85% -
17% in 1Q2010 on lower export demand *2000-2009 average
while the services sector growth eased to ^PMB In-House Statistics
7.3% from 8.5% over the same period Malaysia’s Economic Snapshot
amidst slower growth of wholesale & 2008 2009 2010F
retail trade and real estate sub-sectors. GDP growth, % 4.7 -1.7 7.1
Inflation, % 5.4 0.6 2.0
Malaysia’s inflation rate rose to a 14- F=forecast
month high of 1.9% in July from 1.7% in Bursa Securities 10 year P/E Ratio
June following the government’s reduction 30
in subsidies for retail petrol and selected 28 20 Aug '10
26 P/E on 2010 & 2011 earnings:
food products on 16th July.
P/E Ratio (x)

24 18.2x & 15.2x respectively

22
The Ringgit climbed to a 13-year high of 20
RM3.129 on Thursday before closing at 18
RM3.141 to register a weekly gain of 16
0.9%. On a year-to-date basis, the Ringgit 14
12 Average: 16.7x
appreciated by 9.6% against the
10
greenback.
00 01 02 03 04 05 06 07 08 09 10

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 REGIONAL MARKET WRAP: FORTNIGHTLY
WEEK ENDED REGIONAL MARKETS
20 AUGUST ‘10 COMMENTARY
Regional Markets Performance WEEKLY HIGHLIGHTS
20 Aug'10 13 Aug'10 % chng
FBM KLCI 1,395 1,360 +2.6
MSCI FEXJ# 453 449 +0.8  Regional markets were generally well-
China*, H share 11,780 11,641 +1.2 supported on expectations that
SH Comp 2,642 2,607 +1.4 economic growth for regional
MSCI China 6,347 6,301 +0.7 developing economies will remain
Hong Kong 20,982 21,072 -0.4 resilient.
Taiwan 7,927 7,892 +0.5
Nikkei 9,179 9,253 -0.8
South Korea 1,776 1,746 +1.7  Economic activities in regional
Singapore 2,936 2,940 -0.1 economies continued to expand with
Thailand 894 862^ +3.7 Taiwan’s GDP growth sustained at
Indonesia 3,118 3,053 +2.1 12.5% in 2Q2010 from 13.7% in
Philippines 3,594 3,470 +3.6 1Q2010.
Australia 4,431 4,460 -0.6
#
in USD * Hang Seng China Enterprise Index
^ Index as at 11 Aug ’10. Non Business day for 12 & 13 Aug ‘10  Regional markets are anticipated to
Regional Economies Snapshot
continue moving in tandem with
GDP Growth (%) 2008 2009 2010f global markets as investors monitor
China 9.0 8.7 10.0 the outlook for global economic
Indonesia 6.1 4.5 5.8 activities.
Singapore 1.4 -1.3 13.2
Thailand 2.5 -2.2 5.5 STOCKMARKET COMMENTARY
Philippines 3.8 0.9 5.0
Taiwan 0.1 -1.9 7.4 In North Asia, the China-related markets
Hong Kong 2.4 -2.7 5.0 remained well-supported on expectations
South Korea 2.3 0.2 5.9 that China’s domestic economy will
Japan -1.2 -5.2 2.2 remain resilient despite a moderation in
Australia 2.4 1.3 3.1 export growth. The Hang Seng China
Source : International Monetary Fund, f=consensus forecast Enterprise Index and the Shanghai
Composite Index registered weekly gains
Regional Markets Valuations
Prospective Estimated
of 1.2% and 1.4% respectively while the
P/E Dividend Taiwan and Hong Kong markets remained
(x)^ Yield (%)^ almost unchanged over the week.
Australia 11.15 5.04
Taiwan 11.84 4.13 South-East Asian markets generally
Thailand 11.06 3.88 outperformed their North Asian peers with
Philippines 12.44 3.78 the Thailand market rising by 3.7% on the
Hong Kong 11.64 3.70 back of positive rerating by brokers of
Singapore 13.01 3.41 selected stocks. The Indonesia market was
China ‘H’ Shares 10.57 3.34 up 2.1% over the same period.
Indonesia 12.77 2.56
Shanghai Comp 13.04 2.42 Down under, the Australian market eased
Japan 14.67 1.98 by 0.6% as investors were cautious ahead
South Korea 9.01 1.67
Source: Bloomberg, 20 Aug’10 of the outcome of Australia’s federal
^ Based on next year estimate elections on 21st August.
PER MSCI AC Far-East Ex-Japan- P/E RATIO

26 Average: 15.83

23

20

17

14

11

8
20 August '10 = 12.56x
5
1988 1992 1996 2000 2004 2008

3
 Taiwan’s 2Q2010 GDP growth was sustained at 12.5% in 2Q2010 from 13.7% in 1Q2010
amidst robust investment spending and export growth. For 1H2010, Taiwan’s GDP growth
accelerated to 13.1% from a decline of 1.9% in 2009 on the back of a rebound in
investment spending and export growth.

Japan’s 2Q2010 GDP growth eased to 1.9% from 4.4% in 1Q2010 on slower consumer
spending and net export growth. For 1H2010, Japan’s GDP growth rebounded by 5.9%
versus a decline of 5.2% in 2009 on higher consumer spending and export growth.

As at 20th August 2010, the valuations of regional markets, as proxied by the MSCI Far
East ex-Japan Index, is at a P/E of 12.6x on 2010 earnings, which is 20.7% lower than its
22-year average P/E ratio of 15.8x.

____________________________________________________________________

You are advised to read and understand the contents of the Master Prospectus of Public Series of Funds dated
30th April 2010 and expires on 29th April 2011, Master Prospectus of Public Series of Shariah-Based Funds
dated 30th April 2010 and expires on 29th April 2011, Master Prospectus of PB Series of Funds dated 30th
April 2010 and expires on 29th April 2011, Information Memorandum of PB Cash Plus Fund and PB Islamic
Cash Plus Fund dated 1st March 2010, Prospectus of PB Capital Protected Dragon Fund dated 24th March
2008 and expires on 7th May 2008, Prospectus of Public Capital Protected Select Portfolio Fund dated 29th
July 2008 and expires on 11th September 2008, Prospectus of PB Capital Protected Resources Fund dated
20th August 2008 and expires 3rd October 2008, Information Memorandum of PBB MTN Fund 1 dated 10th
November 2009 and expires on 24th December 2009, Prospectus of PB Singapore Advantage-30 Equity Fund
& PB Infrastructure Bond Fund dated 11 May 2010 and expires on 29 April 2011 and Public Optimal Growth
Fund dated 8th June 2010 and expires on 29th April 2011 before investing. These prospectus have been
registered with the Securities Commission who takes no responsibility for their contents, and neither should
their registration be interpreted to mean that the Commission recommends the investment.

You should note that there are fees and charges involved; and that the prices of units and distribution payable,
if any, may go down as well as up. Applications to purchase must come in the form of a duly completed
application form referred to in and accompanying the prospectus. A copy of the prospectus can be obtained
from your attending agent, corporate representative or nearest Public Mutual Office.

Past performance should not be taken as an indication of future performance.

4
Public Mutual Berhad (23419-A)
Block B, Sri Damansara Business Park, Persiaran Industri, Bandar Sri Damansara, 52200 Kuala Lumpur, Malaysia. P.O. Box 10045, 50700 Kuala Lumpur
Tel: 03-62796800 Fax: 603-62779800 Website:http://www.publicmutual.com.my