MARKET WRAP: WEEK ENDED 1 February13

Weekly Highlights:

Regional Stock Markets Remain Well-Supported

Commencing the week at 1,637.1 points, the FBM KLCI eased to an intraday week low of 1,613.2 points on Wednesday before closing at 1,627.6 points to register a weekly loss of 0.6%. Regional markets remained well-supported over the week amidst positive earnings reports for selected regional stocks and resilient economic activities. Looking ahead, developments in U.S. fiscal policy and newsflow in the Eurozone will continue to provide the direction for global financial markets.

Stockmarket Commentary
The local market continued to ease over the threeday trading week as investors stayed sidelined ahead of the upcoming festive holidays. After touching an intraday week low of 1,613.2 points on Wednesday, the FBM KLCI closed at 1,627.6 points for the week with a loss of 0.6%. Average daily trading volume eased to 1.2bil shares from 1.4bil shares over the week while daily turnover in value terms decreased to RM1.9bil from RM2.0bil over the same period. On Wall Street, the Dow touched a 5-year intraday high of 14,019.8 points on Friday on the back of continued improvement in the labor market and better-than-expected 4Q2012 corporate earnings. The Dow closed the week at 14,010 points with a gain of 0.8% while the broader-based Standard & Poors Index registered a weekly gain of 0.7% to close at a 5-year high of 1,513.2 points. The Nasdaq was up 0.9% to close at 3,179.1 points over the same period. On the economic front, U.S. economic activities moderated with GDP growth easing to 1.5% in 4Q2012 from 2.6% in 3Q2012 due to declines in government spending and net exports. However, consumer spending growth, which accounts for 71% of U.S. GDP, was sustained at 1.9% over the same period. For the whole of 2012, the U.S. economy registered a growth of 2.2% compared to 1.8% in 2011 on account of higher growth in private investment spending. U.S. GDP Growth by Aggregate Demand (% YoY) 3Q12 4Q12 Consumption 1.9 1.9 Investment 11.1 3.1 Government Spending -0.5 -1.7 Net Exports -0.7 -3.3 Real GDP 2.6 1.5 The U.S. labour market continued to expand at a modest pace with 157,000 non-farm jobs added in January 2013 compared to a revised 196,000 jobs added in December 2012. Meanwhile, the unemployment rate edged up to 7.9% from 7.8% over the same period. Manufacturing activities gained pace with the Institute for Supply Management (ISM)s manufacturing index rising to 53.1 in January 2013 from 50.2 in December on account of higher inventory and new orders. On the housing front, the Case-Shiller Composite-20 Home Prices Index rose to a 6-year high of 5.6% in November from 4.2% in October. Crude oil price rose to US$97.77/brl on Friday to register a weekly gain of 2.5% amid geopolitical tension in the Middle East. On the local front, Malaysias loans growth slowed to 10.4% in December from 11.2% in November due to slower growth of corporate loans. Meanwhile, money supply (M3) growth eased to 8.8% from 10.7% over the same period amid lower deposits. On a weekly basis, the Ringgit remained firm against the US$ to close at RM3.107. Looking ahead, developments in U.S. fiscal policy and newsflow in the Eurozone will continue to provide the direction for global financial markets. As at 1st February 2013, the local stock market is valued at a P/E of about 15.8x on 2013 earnings, which is below its 10-year average P/E ratio of 16.5x. The local market is underpinned by a gross dividend yield of 3.6%, which exceeds the 12-month fixed deposit rate of 3.15%.

Market Performance and Valuations

Performance of Equity and Balanced Funds* Local Funds^

PSF PGF PIX PIF PAGF PRSF PBF P SmallCap PEF PFSF PDSF PSSF PSA30F POGF PBBF PBGF PBGSQF PSSCF 1 Feb13 0.5435 0.4790 0.7089 0.5056 0.6286 0.6523 0.6518 0.7453 0.2707 0.2732 0.3015 0.2847 0.3064 0.3028 0.7703 0.7350 0.2717 0.2623 25 Jan'13 0.5460 0.4777 0.7139 0.5080 0.6285 0.6566 0.6517 0.7463 0.2699 0.2748 0.3035 0.2874 0.3080 0.3043 0.7714 0.7369 0.2735 0.2639 % chng -0.5 +0.3 -0.7 -0.5 +0.02 -0.7 +0.02 -0.1 +0.3 -0.6 -0.7 -0.9 -0.5 -0.5 -0.1 -0.3 -0.7 -0.6

Selected Markets Weekly Performances

FBM KLCI FBMS Shariah MSCI FEXJ# MSCI World# Dow Jones Nasdaq TOPIX SH Comp China*,H share MSCI China Hong Kong Taiwan South Korea Singapore Thailand Indonesia
# in USD

1 Feb13 1,627.55^ 11,112.97^ 526.21 357.76 14,010 3,179 943 2,419 12,215 6,677 23,722 7,856 1,958 3,291 1,499 4,482

25 Jan'13 1,637.13 11,193.06 524.64 355.11 13,896 3,150 917 2,291 12,002 6,593 23,580 7,673 1,947 3,269 1,461 4,438

% chng -0.6 -0.7 +0.3 +0.7 +0.8 +0.9 +2.8 +5.6 +1.8 +1.3 +0.6 +2.4 +0.6 +0.7 +2.6 +1.0

Local Islamic Funds^

P Ittikal PIEF PIOF PIMXAF PIDF PISSF PISTF PIOGF PISEF PIA40GF PISVF PITGF PITSEQ PBIEF 1 Feb13 0.8769 0.3511 0.3296 0.2789 0.3786 0.2883 0.3103 0.2949 0.3952 0.2656 0.2632 0.2858 0.2691 0.2485 25 Jan'13 0.8790 0.3531 0.3334 0.2800 0.3806 0.2908 0.3132 0.2973 0.3974 0.2660 0.2641 0.2877 0.2699 0.2501 % chng -0.2 -0.6 -1.1 -0.4 -0.5 -0.9 -0.9 -0.8 -0.6 -0.2 -0.3 -0.7 -0.3 -0.6

* Hang Seng China Enterprises Index

^ Index as at 31 Jan13

Bursa Securities Market Valuations^

FBM KLCI PER'13 (x) Price/NTA(x) 3mth InterBk 12mth FD, % 1 Feb13 1,627.55^ 15.84 2.91 3.21% 3.15% 25 Jan'13 1,637.13 15.94 2.93 3.21% 3.15% 10 yr av.* 16.51 3.16 3.12% -

*2004-2013 average ^PMB In-House Statistics

^ Index as at 31 Jan13

Malaysias Economic Snapshot

GDP growth, % Inflation, %
F=forecast

Foreign Funds^
2012E 5.4 1.6 2013F 5.0 2.5
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 PBDYNAF 1 Feb13 0.2356 0.2079 0.2037 0.2132 0.2191 0.2128 0.1638 0.3104 0.2882 0.2648 0.2262 0.2925 0.2303 0.2879 0.2303 0.2951 0.2154 0.3118 0.1780 0.1626 0.2475 0.2005 0.2886 0.2393 0.2952 0.2961 0.2722 0.2850 0.2825 1.1007 25 Jan'13 0.2299 0.2032 0.2012 0.2077 0.2161 0.2088 0.1599 0.3062 0.2836 0.2592 0.2216 0.2871 0.2250 0.2801 0.2236 0.2877 0.2099 0.3068 0.1734 0.1588 0.2410 0.1941 0.2839 0.2346 0.2917 0.2909 0.2669 0.2797 0.2759 1.0812 % chng +2.5 +2.3 +1.2 +2.6 +1.4 +1.9 +2.4 +1.4 +1.6 +2.2 +2.1 +1.9 +2.4 +2.8 +3.0 +2.6 +2.6 +1.6 +2.7 +2.4 +2.7 +3.3 +1.7 +2.0 +1.2 +1.8 +2.0 +1.9 +2.4 +1.8

2011 5.1 3.2

Bursa Securities 10 year P/E Ratio

30 25
P/E Ratio (x)

31 Jan'13 P/E on 2013 earnings: 15.8x

20 15 Average: 16.5x 10
04 05 06 07 08 09 10 11 12 13

Foreign Islamic Funds^

PAIF PIADF PIATAF PCIF PIALEF PBIAEF PBISSF 1 Feb13 0.2663 0.2607 0.2399 0.1817 0.2415 0.2212 0.1900 25 Jan'13 0.2630 0.2569 0.2353 0.1789 0.2352 0.2181 0.1874 % chng +1.3 +1.5 +2.0 +1.6 +2.7 +1.4 +1.4

* Buying Price ^ NAV as at 31 Jan13. Non Business day on 1 Feb13

REGIONAL MARKET WRAP: WEEK ENDED 1 FEBRUARY13

Regional Markets Performance 1 Feb13 MSCI FEXJ# 526.2 China*, H share 12,215.0 SH Comp 2,419.0 MSCI China 6,676.7 Hong Kong 23,721.8 Taiwan 7,856.0 TOPIX 942.7 South Korea 1,957.8 Singapore 3,291.1 Thailand 1,499.2 Indonesia 4,481.6 Philippines 6,318.6 Australia 4,921.1
*Hang Seng China Enterprises Index # in USD

FORTNIGHTLY REGIONAL MARKETS COMMENTARY WEEKLY HIGHLIGHTS Regional markets remained wellsupported over the week amidst positive earnings reports for selected regional stocks and resilient economic activities. Regional economic activities were generally firm with Chinas Purchasing Managers Index (PMI) for manufacturing sustained at 50.4 in January 2013 compared to 50.6 in December 2012. Taiwans GDP growth rose to 3.4% in 4Q2012 from 1.0% in 3Q2012. Regional markets are expected to remain volatile over the near term as investors monitor the progress of U.S. lawmakers in reaching an agreement on government debt ceiling and spending cuts.

25 Jan'13 524.6 12,001.8 2,291.3 6,592.9 23,580.4 7,672.6 917.1 1,946.7 3,269.3 1,461.4 4,437.6 6,167.6 4,835.2

% chng +0.3 +1.8 +5.6 +1.3 +0.6 +2.4 +2.8 +0.6 +0.7 +2.6 +1.0 +2.4 +1.8

Regional Economies Snapshot GDP Growth (%) 2011 China 9.2 Indonesia 6.5 Hong Kong 4.9 Singapore 4.9 Taiwan 4.0 Philippines 3.9 South Korea 3.6 Australia 2.0 Thailand 0.1 Japan -0.7
Source: Bloomberg, f=consensus forecast

2012f 7.8 6.2 2.5 2.1 1.2 3.4 2.5 3.3 4.0 1.7

2013f 8.0 6.0 3.0 3.0 2.5 4.7 3.0 2.5 5.0 1.7

Stockmarket Commentary
In North Asia, the Taiwan market was up 2.4% over the week while the Hang Seng China Enterprise Index rose 1.8% over the same period on the back of positive economic data. Japans TOPIX registered a weekly gain of 2.8% on expectations that continued weakness in the Yen will boost Japans exports. South East Asian markets were also wellsupported with the Philippines and Indonesia markets registering weekly gains of 2.4% and 1.0% respectively. Down under, the Australian market was up 1.8% over the week as higher iron ore prices boosted the share prices of mining stocks.

Regional Markets Valuations Prospective P/E (x) Australia 14.75 China H Shares 9.19 Hong Kong 11.50 Thailand 13.82 Taiwan 14.95 Singapore 14.81 Shanghai Comp 10.42 Philippines 18.09 Indonesia 14.29 Japan 19.32 South Korea 9.73
Source: Bloomberg, 1 Feb13

Estimated Dividend Yield (%) 4.50 3.36 3.32 3.30 3.10 2.97 2.76 2.27 2.17 2.02 1.34

PER 26 23 20 17 14 11 8 5 1987

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

Average: 15.48

1 Feb'13 = 11.74x
1991 1995 1999 2003 2007 2011

Chinas China Federation of Logistics and Purchasings (CFLP) Purchasing Managers Index (PMI) for manufacturing was sustained at 50.4 in January 2013 compared to 50.6 in December 2012. The reading remained above 50 for the fourth consecutive month indicating that Chinas manufacturing activities are expanding. Based on advance estimate, Taiwans GDP growth rose to 3.4% in 4Q2012 from 1.0% in 3Q2012 following a rebound in investment spending and higher export growth. For the whole of 2012, Taiwans GDP growth eased to 1.2% from 4.1% in 2011 amid lower consumer and government spending. South Koreas export growth rebounded to 11.8% in January 2013 after contracting by 5.7% in December 2012 due to higher exports to U.S. and China. Meanwhile, the inflation rate in South Korea inched up to 1.5% in January 2013 from 1.4% in December 2012 on higher food prices. As at 1st February 2013, the valuation of regional markets, as proxied by the MSCI Far East ex-Japan Index, is at a P/E of 11.7x on 2013 earnings, which is 24% lower than its 22-year average P/E ratio of 15.5x.

You are advised to read and understand the contents of the Master Prospectus of Public Series of Funds dated 30th April 2012 and expires on 29th April 2013, Master Prospectus of Public Series of Shariah-Based Funds dated 30th April 2012 and expires on 29th April 2013, Master Prospectus of PB Series of Funds dated 30th April 2012 and expires on 29th April 2013, 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 and Prospectus of PB Dynamic Allocation Fund dated 19th June 2012 and expires on 29th April 2013. 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