WEEKLY HIGHLIGHTS MARKET WRAP: WEEK ENDED 22 JULY11

Bursa Securities vs Public Mutuals performance* 22 Jul'11 15 Jul'11

FBM KLCI 1,565.06 FBMS Shariah 10,451.36 # MSCI FEXJ 542.05 MSCI World# 345.99 Local Funds PSF 0.6678 PGF 0.5906 PIX 0.7483 PIF 0.6095 PAGF 0.7227 PRSF 0.6416 PBF 0.7472 P SmallCap 0.8946 PEF 0.3352 PFSF 0.2756 PDSF 0.2858 PSSF 0.3116 PSA30F 0.3510 POGF 0.2960 PBBF 0.8340 PBGF 0.8342 Local Islamic Funds P Ittikal 0.9016 PIEF 0.3414 PIOF 0.3476 PIBF 0.2935 PIDF 0.3510 PISSF 0.3142 PISTF 0.3123 PIOGF 0.2922 PISEF 0.3840 PIA40GF 0.2670 PBIEF 0.2785 Foreign Funds PFES 0.2850 PRSEC 0.2490 PGSF 0.1944 PFEDF 0.2626 PFEBF 0.2175 PGBF 0.2140 PCSF 0.1974 PFEPRF 0.2465 PSEASF 0.2920 PFECTF 0.2813 PCTF 0.2365 PFETIF 0.3468 PNREF 0.2897 PAUEF 0.2916 PFA30F 0.2823 PINDOSF 0.2923 PBAEF 0.2552 PBADF 0.2812 PBEPEF 0.2149 PBCPEF 0.1825 PBCAEF 0.2904 PBCAUEF 0.2726 PBSGA30EF 0.2759 PBAPENTF 0.2545 PBAREIF 0.2647 PBADBF 0.3267 PBINDOBF 0.2800 PSGEF 0.2541 Foreign Islamic Funds PAIF 0.2790 PIADF 0.2393 PIABF 0.2232 PCIF 0.2058 PIALEF 0.2615 PBIAEF 0.2237 PBIASSF 0.1821 Capital Protected Funds PCPSPF 1.1264 PBCPRF 1.1263 # *Buying Price in USD ^ Nav as at 14 Jul 11 1,577.25 10,498.16 530.77 337.39 0.6662 0.5919 0.7490 0.6046 0.7255 0.6463 0.7493 0.8945 0.3357 0.2731 0.2868 0.3117 0.3518 0.2970 0.8320 0.8307 0.9019 0.3425 0.3474 0.2924 0.3524 0.3129 0.3125 0.2920 0.3858 0.2681 0.2763 0.2866 0.2508 0.1933 0.2592 0.2160 0.2131 0.1966 0.2435 0.2872^ 0.2798 0.2327 0.3480 0.2833 0.2809 0.2788 0.2898 0.2570 0.2766^ 0.2138 0.1815 0.2919 0.2738 0.2691 0.2521 0.2620 0.3178 0.2785 0.2503 0.2764 0.2389 0.2226 0.2046 0.2607 0.2220 0.1805 1.1235 1.1200 % chng -0.8 -0.4 +2.1 +2.5 +0.2 -0.2 -0.1 +0.8 -0.4 -0.7 -0.3 +0.01 -0.1 +0.9 -0.3 -0.03 -0.2 -0.3 +0.2 +0.4 -0.03 -0.3 +0.1 +0.4 -0.4 +0.4 -0.1 +0.1 -0.5 -0.4 +0.8 -0.6 -0.7 +0.6 +1.3 +0.7 +0.4 +0.4 +1.2 +1.7 +0.5 +1.6 -0.3 +2.3 +3.8 +1.3 +0.9 -0.7 +1.7 +0.5 +0.6 -0.5 -0.4 +2.5 +1.0 +1.0 +2.8 +0.5 +1.5 +0.9 +0.2 +0.3 +0.6 +0.3 +0.8 +0.9 +0.3 +0.6

The FBM KLCI moved in a trading range and closed at 1,565.1 points to register a loss of 0.8% for the week. Regional markets generally closed higher after Eurozone leaders agreed on a financial rescue plan for Greece. Looking ahead, market sentiment is anticipated to be cautious in the near term as investors continue to focus on sovereign debt issues in developed markets.

STOCKMARKET COMMENTARY The local market moved in a trading range with the FBM KLCI Index touching a 3week intraday low of 1,552.7 points on Tuesday. However, the FBM KLCI subsequently rebounded and closed at 1,565.1 points to register a loss of 0.8% for the week. Average daily trading volume increased to 1.0 bil from 0.8 bil in the preceding week while daily turnover in value terms rose to RM1.9 bil from RM1.5 bil over the same period. On Wall Street, share prices rose following news of the U.S. governments deficit-reduction plan and a second bailout plan by the European Union and IMF for Greece. Market sentiment was also lifted by better-than-expected corporate earnings. The Dow closed at 12,681 points for a weekly gain of 1.6%. The broaderbased S&P 500 Index rose by 2.2% to 1,345 points. The Nasdaq was up 2.5% to 2,859 points over the same period on gains in selected tech stocks. In the U.S., the housing market showed signs of improvement as existing home sales declined at a slower pace of 0.8% month-on-month to a seasonally-adjusted annual rate of 4.77 million in June after contracting by 3.8% in May. U.S. housing starts rose at the fastest pace in five months of 14.6% month-on-month to a seasonally-adjusted annual rate of 629,000 units in June due to better weather conditions.
1

The European Union and IMF agreed to provide a second bailout of 109bil (US$155bil) to Greece and increase the flexibility of the European Financial Stability Facility (EFSF) on 21 July 2011. The new financing plan will incorporate a lower interest rate of 3.5%, lengthening of the maturity on future loans to Greece to a minimum of 15 years and up to 30 years with a 10 year grace period as well as lengthening of the maturity on existing loans. Oil prices closed at US$99.64 per brl to register a weekly gain of 2.5% following the announcement that International Energy Agencys (IEA) would not continue releasing oil reserves into the global oil market. On the local front, the inflation rate rose to a 27-month high of 3.5% in June from 3.3% in May on higher food and housing costs. Food price inflation increased to 4.7% from 4.5% over the same period. Malaysias foreign reserves rose by 23.9% to RM407.0 billion on a year-to-date basis to 15th July 2011 due to the repatriation of export proceeds. On a weekly basis, the Ringgit rose by 1.4% to close at RM2.972 against the US$ while on a year-to-date basis, the Ringgit appreciated by 3.0% against the greenback. Looking ahead, the local and regional markets are anticipated to remain supported by resilient economic growth and low real interest rates. However, investors will continue to monitor the development of fiscal policies that will impact the outlook for the U.S. and global economies in the year ahead. Uncertainties among policy makers on whether to continue fiscal stimulus policies or consolidate fiscal finances have caused financial markets in the U.S. and Europe to be volatile in recent months.

As at 22nd July 2011, the local stock market is valued at a P/E of about 16.6x on 2011 earnings, which is comparable to its 10-year average P/E ratio of 16.7x. The local market is also supported by a gross dividend yield of 3.7%, which exceeds the 10-year average of 3.6% and the 12-month fixed deposit rate of 3.15%.
Other Markets Performance 22 Jul'11 15 Jul'11 Dow Jones 12,681 12,480 Nasdaq 2,859 2,790 TOPIX 869 859 SH Comp 2,771 2,820 China*, H share 12,599 12,266 MSCI China 6,744 6,619 Hong Kong 22,445 21,875 Taiwan 8,765 8,575 South Korea 2,171 2,145 Singapore 3,183 3,084 Thailand 1,121 1,080^ Indonesia 4,107 4,023
* Hang Seng China Enterprise Index ^ Index as at 14 Jul 11

% chng +1.6 +2.5 +1.1 -1.8 +2.7 +1.9 +2.6 +2.2 +1.2 +3.2 +3.8 +2.1

Bursa Securities Market Valuations^ 22 Jul'11 15 Jul'11 FBM KLCI 1,565.06 1,577.25 PER'11(x) 16.66 16.58 Price/NTA(x) 4.14 4.14 3mth InterBk 3.29% 3.29% 12mth Fix Dep, % 3.15% 3.15%
*2001-2010 average ^PMB In-House Statistics

10 yr ave* 16.66 2.52 3.12% -

Malaysias Economic Snapshot 2010 2011F GDP growth, % 7.2 5.2 Inflation, % 1.7 3.5
F=forecast

2012F 5.0 2.7

Bursa Securities 10 year P/E Ratio

30 25
P/E Ratio (x)

22 July '11 P/E on 2011 earnings: 16.6x

20 15 Average: 16.7x 10 01 02 03 04 05 06 07 08 09 10 11

REGIONAL MARKET WRAP: WEEK ENDED 22 JULY 11

Regional Markets Performance 22 Jul'11 15 Jul'11 FBM KLCI 1,565 1,577 MSCI FEXJ# 542 531 China*, H share 12,599 12,266 SH Comp 2,771 2,820 MSCI China 6,744 6,619 Hong Kong 22,445 21,875 Taiwan 8,765 8,575 TOPIX 869 859 South Korea 2,171 2,145 Singapore 3,183 3,084 Thailand 1,121 1,080^ Indonesia 4,107 4,023 Philippines 4,478 4,459 Australia 4,603 4,474
in USD ^ Index as at 14 Jul 11
#

FORTNIGHTLY REGIONAL MARKETS COMMENTARY WEEKLY HIGHLIGHTS Regional markets generally closed higher after Eurozone leaders agreed on a financial rescue plan for Greece. Regional economic activities were mixed with exports slowing in Singapore while exports in Japan declined at a slower pace. Regional markets continue moving global markets as the outlook for activities. are anticipated to in tandem with investors monitor global economic

% chng -0.8 +2.1 +2.7 -1.8 +1.9 +2.6 +2.2 +1.1 +1.2 +3.2 +3.8 +2.1 +0.4 +2.9

* Hang Seng China Enterprise Index

Regional Economies Snapshot GDP Growth (%) 2010 2011f China 10.3 9.3 Indonesia 6.1 6.3 Singapore 14.5 5.6 Thailand 7.8 4.5 Philippines 7.6 5.0 Taiwan 10.9 5.2 Hong Kong 6.8 5.4 South Korea 6.1 4.4 Japan 3.9 -0.6 Australia 2.7 2.3

2012f 8.8 6.5 4.4 4.0 4.5 4.5 4.5 4.2 1.7 3.5

STOCKMARKET COMMENTARY In North Asia, stock markets generally rebounded following news of a second bailout plan for Greece. The Hang Seng China Enterprise Index and Hong Kong market registering weekly gains of 2.7% and 2.6% respectively. In South East Asia, the Thai market outperformed the region with a weekly gain of 3.8% to close at a 15-year high of 1,121 points amidst buying interest from foreign investors. The Indonesian market rose by 2.1% to a record high of 4,107 points in anticipations of a potential sovereign credit rating upgrade. The Australian market closed 2.9% higher over the week in tandem with firmer global markets.

Source: International Monetary Fund, f=consensus forecast

Regional Markets Valuations Prospective Estimated P/E Dividend (x) Yield (%) Australia 13.53 4.68 Thailand 12.86 3.68 Taiwan 14.38 3.64 Hong Kong 12.08 3.38 China H Shares 10.27 3.18 Singapore 14.72 3.07 Philippines 14.75 2.87 Japan 16.04 2.13 Shanghai Comp 12.72 2.28 Indonesia 16.18 1.92 South Korea 10.84 1.37
Source: Bloomberg, 22 July11

PER 26 23 20 17 14 11 8 5 1987

MSCI AC Far-East Ex-Japan- P/E RATIO

Average: 15.72

22 July '11 = 12.40x

1991 1995 1999 2003 2007

Singapores non-oil domestic export growth eased to 1.1% in June from 7.6% in May due to a decline in electronics exports and slower growth of pharmaceutical exports. Japans exports declined by a smaller margin of 1.6% in June after contracting by 10.3% in May as production activities gradually normalise following the 11 March earthquake. Meanwhile, import growth moderated to 9.8% from 12.3% over the same period. Japan registered a cumulative trade deficit of US$11.1bil for 1H2011 compared to a surplus of US$36.8bil in the same period in 2010 as imports outpaced exports. Hong Kongs inflation rate rose to a 3-year high of 5.6% in June from 5.2% in May on higher food and housing costs. As at 22nd July 2011, the valuations of regional markets, as proxied by the MSCI Far East ex-Japan Index, is at a P/E of 12.4x on 2011 earnings, which is 21% lower than its 22-year average P/E ratio of 15.7x.

You are advised to read and understand the contents of the Master Prospectus of Public Series of Funds dated 30th April 2011 and expires on 29th April 2012, Master Prospectus of Public Series of Shariah-Based Funds dated 30th April 2011 and expires on 29th April 2012, Master Prospectus of PB Series of Funds dated 30th April 2011 and expires on 29th April 2012, Information Memorandum of PB Cash Plus Fund and PB Islamic Cash Plus Fund dated 1st March 2010, 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 on 3rd October 2008 and Information Memorandum of PBB MTN Fund 1 dated 10th November 2009 and expires on 24th December 2009. 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.

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