MARKET WRAP: WEEK ENDED 6 JANUARY12

Bursa Securities vs Public Mutuals performance*

FBM KLCI FBMS Shariah MSCI FEXJ# MSCI World# Local Fund PSF PGF PIX PIF PAGF PRSF PBF P SmallCap PEF PFSF PDSF PSSF PSA30F POGF PBBF PBGF PBGSQF Local Islamic Funds P Ittikal PIEF PIOF PIMXAF PIDF PISSF PISTF PIOGF PISEF PIA40GF PISVF PITGF PITSEQ PBIEF Foreign Funds PFES PRSEC PGSF PFEDF PFEBF PTAF PCSF PFEPRF PSEASF PFECTF PCTF PFETIF PNREF PAUEF PFA30F PINDOSF PBAEF PBADF PBEPEF PBCPEF PBCAEF PBCAUEF PBSGA30EF PBAPENTF PBAREIF PBADBF PBINDOBF PSGEF PBAEGF Foreign Islamic Funds PAIF PIADF PIATAF PCIF PIALEF PBIAEF PBIASSF 6 Jan'12 1,514.13 10,283.35 439.39 301.96 0.5425 0.4644 0.7286 0.5095 0.6229 0.6397 0.6521 0.6852 0.2597 0.2485 0.2831 0.2844 0.3023 0.2849 0.7642 0.7488 0.2511 0.8322 0.3348 0.3013 0.2773 0.3557 0.2896 0.2982 0.2868 0.3656 0.2553 0.2500 0.2605 0.2542 0.2337 0.1996 0.1751 0.1756 0.2007 0.1954 0.1908 0.1448 0.2318 0.2441 0.2384 0.1913 0.2714 0.2076 0.2390 0.2051 0.2665 0.1857 0.2620 0.1608 0.1363 0.2083 0.1668 0.2285 0.2049 0.2434 0.2740 0.2608 0.2312 0.2618 0.2443 0.2335 0.2131 0.1628 0.2308 0.2039 0.1685 30 Dec'11 1,530.73 10,300.29 436.94 299.51 0.5452^ 0.4710 0.7343 0.5125 0.6310 0.6424 0.6578 0.6856 0.2634 0.2486^ 0.2840 0.2863 0.3046 0.2848 0.7673 0.7541 0.2515 0.8400 0.3356 0.2993 0.2777 0.3574 0.2934 0.2988 0.2874 0.3687 0.2568 0.2500 0.2606 0.2553 0.2348 0.2040 0.1787 0.1748 0.2035 0.1971 0.1909 0.1468 0.2305 0.2429 0.2390 0.1936 0.2777 0.2078 0.2375 0.2083 0.2664 0.1900 0.2618 0.1629 0.1377 0.2138 0.1703 0.2239 0.2080 0.2426 0.2729 0.2612 0.2276 0.2626 0.2437 0.2339 0.2121 0.1651 0.2297 0.2034 0.1681 % chng -1.1 -0.2 +0.6 +0.8 -0.5 -1.4 -0.8 -0.6 -1.3 -0.4 -0.9 -0.1 -1.4 -0.1 -0.3 -0.7 -0.8 +0.04 -0.4 -0.7 -0.2 -0.9 -0.2 +0.7 -0.1 -0.5 -1.3 -0.2 -0.2 -0.8 -0.6 0.0 -0.04 -0.4 -0.5 -2.2 -2.0 +0.5 -1.4 -0.9 -0.1 -1.4 +0.6 +0.5 -0.3 -1.2 -2.3 -0.1 +0.6 -1.5 +0.04 -2.3 +0.1 -1.3 -1.0 -2.6 -2.1 +2.1 -1.5 +0.3 +0.4 -0.2 +1.6 -0.3 +0.2 -0.2 +0.5 -1.4 +0.5 +0.2 +0.2

WEEKLY HIGHLIGHTS Despite firmer offshore markets, the FBM KLCI eased moderately on profit-taking to close at 1,514.1 points, down 1.1% for the week. Regional markets were well-supported on expectations that the recent series of positive U.S. economic data augur well for the outlook of regional exports. Looking ahead, the local market is anticipated to move in tandem with overseas markets as investors continue to monitor the outlook for global economic activities.

STOCKMARKET COMMENTARY Despite firmer offshore markets, the local market eased moderately as investors locked in profits from recent gains. The FBM KLCI closed at 1,514.1 points to register a loss of 1.1% for the week. Average daily trading volume increased to 1.6bil from 1.3bil in the preceding week while daily turnover in value terms rose to RM1.4bil from RM1.2bil over the same period. On Wall Street, shares prices registered modest gains following better-thanexpected manufacturing and non-farm jobs data for December. The broader S&P 500 rose 1.6% to close at 1,277.8 points for the week while the Dow was up 1.2% to close at 12,360 points for the week. The Nasdaq was up by a wider margin of 2.7% to 2,674 points over the same period.

# *Buying Price in USD ^ Adjusted for distribution.

The labour market in the U.S. showed significant improvement with new nonfarm jobs doubling to a 3-month high of 200,000 in December compared to 100,000 jobs created in November and market expectations of 155,000 jobs. The improvement in jobs came from hiring in the private sector with the services sector adding 164,000 new jobs in December compared to 126,000 jobs in November. As a result, the unemployment rate eased to a 34-month low of 8.5% in December from 8.7% in November. Meanwhile, manufacturing activities strengthened with the Institute of Supply Managements Purchasing Managers Index rising to a 6-month high of 53.9 in December from 52.7 in November on higher production and new orders. Crude oil prices rose to US$101.56/brl to register a weekly gain of 2.8% following a decrease in U.S. oil inventories and concerns that Iran could close the Strait of Hormuz in the Persian Gulf if new trade sanctions are adopted by Western nations. On the local front, the Ringgit strengthened by 0.7% over the week to close at RM3.144 against the US$.

Looking ahead, the local market is anticipated to move in tandem with overseas markets as investors continue to monitor the outlook for global economic activities. While the economic indicators for the U.S. has improved in recent months, the outlook for Europe remains cautious as austerity measures would dampen the Eurozones economic activities. As at 6th January 2012, the local stock market is valued at a P/E of about 14.8x on 2012 earnings, which is lower than 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 is in line with the 10-year average of 3.7% and the 12-month fixed deposit rate of 3.15%.
Other Markets Performance 6 Jan'12 30 Dec'11 12,218 Dow Jones 12,360 2,605 Nasdaq 2,674 729 TOPIX 730 2,199 SH Comp 2,163 China*, H share 9,987 9,936 5,390 MSCI China 5,412 18,434 Hong Kong 18,593 7,072 Taiwan 7,121 1,826^ South Korea 1,843 2,646 Singapore 2,716 Thailand 1,036 1,025 3,822 Indonesia 3,869
* Hang Seng China Enterprises Index ^ Index as at 29 Dec11

% chng +1.2 +2.7 +0.1 -1.6 +0.5 +0.4 +0.9 +0.7 +1.0 +2.6 +1.1 +1.2

Bursa Securities Market Valuations^ 6 Jan'12 30 Dec'11 FBM KLCI 1,514.13 1,530.73 PER'12 (x) 14.91 14.81 Price/NTA(x) 5.14 5.09 3mth InterBk 3.22% 3.22% 12mth Fix Dep, % 3.15% 3.15%
*2002-2011 average ^PMB In-House Statistics

10 yr ave* 16.67 2.79 3.12% -

Malaysias Economic Snapshot 2010 2011F GDP growth, % 7.2 5.0 Inflation, % 1.7 3.5
F=forecast

2012F 4.5 2.7

Bursa Securities 10 year P/E Ratio

30 25 20 15 Average: 16.7x 10
01 02 03 04 05 06 07 08 09 10 11

6 Jan '12 P/E on 2012 earnings: 14.8x

P/E Ratio (x)

REGIONAL MARKET WRAP: WEEK ENDED 6 JANUARY12

Regional Markets Performance 6 Jan'12 30 Dec'11 FBM KLCI 1,514 1,531 MSCI FEXJ# 439 437 China*, H share 9,987 9,936 SH Comp 2,163 2,199 MSCI China 5,412 5,390 Hong Kong 18,593 18,434 Taiwan 7,121 7,072 TOPIX 730 729 South Korea 1,843 1,826^ Singapore 2,716 2,646 Thailand 1,036 1,025 Indonesia 3,869 3,822 Philippines 4,483 4,372^ Australia 4,109 4,057
in USD

FORTNIGHTLY REGIONAL MARKETS COMMENTARY WEEKLY HIGHLIGHTS Regional markets were well-supported on expectations that the recent series of positive U.S. economic data augur well for the outlook of regional exports. Inflationary pressures in regional economies continued to ease in December as food and energy prices increased at a slower pace. Regional markets are anticipated to continue moving in tandem with global markets as investors monitor the outlook for global economic activities and developments in the Eurozone.

% chng -1.1 +0.6 +0.5 -1.6 +0.4 +0.9 +0.7 +0.1 +1.0 +2.6 +1.1 +1.2 +2.5 +1.3

* Hang Seng China Enterprises Index

^ Index as at 29 Dec11

Regional Economies Snapshot GDP Growth (%) 2010 2011f China 10.3 9.0 Indonesia 6.1 6.3 Singapore 14.5 5.0 Thailand 7.8 4.0 Philippines 7.6 5.0 Taiwan 10.9 4.8 Hong Kong 7.0 5.0 South Korea 6.1 3.8 Japan 3.9 -0.6 Australia 2.7 1.2

2012f 7.5 6.5 4.0 4.0 4.5 3.5 3.8 3.6 2.5 1.5

STOCKMARKET COMMENTARY North Asian markets generally closed firmer as investors shifted their attention from the Eurozone debt crisis to more positive economic news from the U.S. The China H shares market rose by 0.5% but the Shanghai Composite Index fell 1.6% over the week after Chinese Premier Wen Jiabao said business conditions may be challenging in the current quarter. South-East Asian markets performed relatively better with weekly gains ranging from 1% to 3%. The Singapore and the Philippine markets registered gains of 2.6% and 2.5% respectively. Down under, the Australian market was up 1.3% for the week, led by gains in resources-based stocks.

Source: International Monetary Fund, f=consensus forecast

Regional Markets Valuations Estimated Prospective Dividend P/E Yield (%) ^ (x) ^ Australia 10.03 5.73 Taiwan 10.57 5.68 Hong Kong 8.35 4.69 China H Shares 6.61 4.66 Thailand 9.65 4.47 Singapore 11.10 3.92 Shanghai Comp 7.57 3.54 Philippines 12.03 3.17 Indonesia 11.03 3.00 Japan 12.01 2.56 South Korea 7.65 1.71
Source: Bloomberg, 6 Jan12 ^Based on next year estimate
PER 26 23 20 17 14 11 8 5 1987 1991

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

Average: 15.58

6 January'12 = 10.19x
1995 1999 2003 2007 2011

Inflationary pressures in selected regional economies continue to ease with Indonesia and Thailands inflation rate moderating to 3.8% and 3.5% respectively in December from 4.2% in November. Meanwhile, Indonesias export growth decelerated to a 26-month low of 8.3% in November from 17.8% in October due to a decline in exports to China. Import growth slowed to 18.4% from 28.2% over the same period. As exports outpaced imports, Indonesia registered a cumulative trade surplus of US$25.1bil for the first eleven months of 2011 compared to US$17.8bil over the same period last year. In China, loans growth edged up to 14.3% in December from 14.0% in November as new lending rose to RMB640.5bil from RMB562.2bil over the same period, resulting in an annual loans growth of 14.3% in 2011 versus about 20% in 2010. As at 6th January 2012, the valuations of regional markets, as proxied by the MSCI Far East ex-Japan Index, is at a P/E of 10.2x on 2012 earnings, which is 34.6% lower than its 22-year average P/E ratio of 15.6x. Despite the recent rebound in regional markets, there are still several selected markets that are currently trading at P/E valuations of 10x and below.

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, Information Memorandum of PBB MTN Fund 1 dated 10th November 2009 and expires on 24th December 2009, Prospectus of Public Singapore Equity Fund dated 7th June 2011 and expires on 29th April 2012, Prospectus of Public Islamic Treasures Growth Fund and Public Sukuk Fund dated 19th July 2011 and expires on 29th April 2012, Prospectus of PB Asia Emerging Growth Fund, PB Bond Fund & PB Sukuk Fund dated 6th September 2011 and expires on 29th April 2012, Prospectus of Public Ittikal Sequel Fund dated 11th October 2011 and expires on 29th April 2012, Prospectus of PB Growth Sequel Fund dated 15th November 2011 and expires on 29th April 2012, and Prospectus of Public Islamic Savings Fund dated 15th December 2011 and expires on 29th April 2012. 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. 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