MARKET WRAP: WEEK ENDED 2 NOVEMBER12

Weekly Highlights: Regional Markets Up on Positive U.S. & China Economic Data

After touching a new record intraday high of 1,678.6 points on Thursday, the FBM KLCI subsequently
closed at 1,656.1 points for a loss of 0.9% for the week.

Regional markets closed higher following news of better-than-expected U.S. consumer confidence data
and an improvement in Chinas Purchasing Managers Index for October.

Looking ahead, the local market is anticipated to move in tandem with overseas markets as investors
await further news on the trend in global economic data and developments in U.S. fiscal policy.

Stockmarket Commentary

Selected buying of financial and plantation stocks
helped the FBM KLCI to touch an intraday record
high of 1,678.6 points on 1st November. Sentiment
was also supported by firmer regional markets.
However, profit-taking pressures subsequently
caused the FBM KLCI to shave off the earlier gains
and close at 1,656.1 points for a loss of 0.9% for the
week.
5-month high of 51.7 in October from 51.5 in
September due to higher production and new orders.
Crude oil price closed at US$84.86/brl on Friday to
register a weekly loss of 1.6% following news that
the Organization of Petroleum Exporting Countries
(OPEC) reported a slight increase in October oil
supply.

Average daily trading volume increased to 1.4bil
from 1.3bil over the week while daily turnover in
value terms was sustained at RM1.5bil over the
same period.
Regional markets closed higher following news of
better-than-expected U.S. consumer confidence data
and a rebound in Chinas Purchasing Managers
Index for October. The China H shares market and
the Shanghai Composite Index rose by 3.7% and
2.5% respectively over the week.
On Wall Street, the Dow was volatile after two days
of closure due to disruptions caused by Hurricane
Sandy. After rising by 1% on Thursday, the Dow
shaved off the gains on Friday as investors took
profits ahead of the U.S. elections to be held on 6th
November. For the week, the Dow edged down by
0.1% to close at 13,093.2 points while the broader-
based S&P 500 Index gained by 0.2% to close
at 1,414.2 points. The Nasdaq was down 0.2% to
2,982.1 points over the same period.
In the U.S., macroeconomic data released over the
week was positive with 171,000 non-farm jobs
added in October compared to a revised 148,000
jobs created in September on the back of more
services sector jobs. In addition, consumer
confidence as measured by the Conference Board
improved to a 56-month high of 72.2 in October
from 68.4 in September. The Institute for Supply
Managements manufacturing index edged up to a
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In the Far-East region, Chinas Purchasing Managers
Index (PMI) for manufacturing rose above 50 for the
first time in 3 months to 50.2 in October from 49.8 in
September on the back of higher new orders. A
reading above 50 indicates that manufacturing
activities are expanding.
On the local front, Malaysias loans growth eased to
11.9% in September from 12.3% in August due to
slower growth of corporate loans. Meanwhile, money
supply (M3) growth slowed to 12.5% from 13.9%
over the same period amid lower deposits.
On a weekly basis, the Ringgit remained firm against
the US$ to close at RM3.053 while on a year-to-date
basis, the Ringgit appreciated by 3.7% against the
greenback.
Looking ahead, the local market is anticipated to
move in tandem with overseas markets as investors
await further news on the trend in global economic
data and developments in U.S. fiscal policy
following the outcome of the U.S. elections.
As at 2nd November 2012, the local stock market is
valued at a P/E of about 17.2x on 2012 earnings,
which is in line with its 10-year average P/E ratio of
16.6x. The local market is underpinned by a gross
dividend yield of 3.3%, which exceeds the 12-month
fixed deposit rate of 3.15%.
Market Performance and Valuations Performance of Equity and Balanced Funds*

Selected Markets Weekly Performances Local Funds

2 Nov12 26 Oct'12 % chng 2 Nov12 25 Oct'12^ % chng
PSF 0.5928 0.5978 -0.8
FBM KLCI 1,656.13 1,671.89^ -0.9
PGF 0.4702 0.4707 -0.1
FBMS Shariah 11,363.71 11,515.40^ -1.3 PIX 0.7233 0.7266 -0.5
MSCI FEXJ# 495.65 486.76 +1.8 PIF 0.5168 0.5212^^ -0.8
MSCI World# 330.40 328.59 +0.6 PAGF 0.6201 0.6224 -0.4
PRSF 0.6580 0.6592 -0.2
Dow Jones 13,093 13,107 -0.1
PBF 0.6468 0.6480 -0.2
Nasdaq 2,982 2,988 -0.2 P SmallCap 0.7230 0.7193 +0.5
TOPIX 752 741 +1.5 PEF 0.2655 0.2657^^ -0.1
SH Comp 2,117 2,066 +2.5 PFSF 0.2887 0.2870 +0.6
PDSF 0.3032 0.3049 -0.6
China*,H share 10,834 10,450 +3.7
PSSF 0.2902 0.2919^^ -0.6
MSCI China 6,142 5,910 +3.9 PSA30F 0.3279 0.3284 -0.2
Hong Kong 22,111 21,546 +2.6 POGF 0.3059 0.3079 -0.6
Taiwan 7,210 7,134 +1.1 PBBF 0.7765 0.7823 -0.7
PBGF 0.7510 0.7588 -1.0
South Korea 1,919 1,891 +1.4 PBGSQF 0.2749 0.2774 -0.9
Singapore 3,041 3,058^ -0.5 PSSCF 0.2632 0.2638 -0.2
Thailand 1,307 1,282 +1.9
Indonesia 4,338.9 4,339.2^ -0.01 Local Islamic Funds
* Hang Seng China Enterprises Index ^ Index as at 25 Oct12 2 Nov12 25 Oct'12^ % chng
#
in USD P Ittikal 0.8595 0.8696 -1.2
PIEF 0.3550 0.3599 -1.4
PIOF 0.3302 0.3319 -0.5
Bursa Securities Market Valuations^ PIMXAF 0.2944 0.2972 -0.9
2 Nov12 25 Oct'12 10 yr av.* PIDF 0.3818 0.3876 -1.5
FBM KLCI 1,656.13 1,671.89 - PISSF 0.3094 0.3141 -1.5
PISTF 0.3112 0.3108 +0.1
PER'12 (x) 17.23 17.46 16.56 PIOGF 0.2966 0.3011 -1.5
Price/NTA(x) 2.77 2.81 3.05 PISEF 0.3975 0.4026 -1.3
PIA40GF 0.2829 0.2848 -0.7
3mth InterBk 3.21% 3.21% 3.11% PISVF 0.2750 0.2788 -1.4
12mth FD, % 3.15% 3.15% - PITGF 0.2856 0.2850 +0.2
*2003-2012 average PITSEQ 0.2805 0.2851 -1.6
^PMB In-House Statistics PBIEF 0.2501 0.2541 -1.6

Foreign Funds
Malaysias Economic Snapshot 2 Nov12 25 Oct'12^ % chng
2011 2012F 2013F PFES 0.2073 0.2055 +0.9
PRSEC 0.1823 0.1824 -0.1
GDP growth, % 5.1 4.5 4.0-4.5 PGSF 0.1892 0.1879 +0.7
Inflation, % 3.2 2.0 2.5 PFEDF 0.2079 0.2090 -0.5
F=forecast PFEBF 0.2118 0.2097 +1.0
PTAF 0.2018 0.1999 +1.0
PCSF 0.1511 0.1495 +1.1
Bursa Se curitie s 10 ye ar P/E Ratio
PFEPRF 0.2825 0.2804 +0.7
30 PSEASF 0.2712 0.2713^^ -0.03
2 Nov'12 PFECTF 0.2536 0.2517 +0.8
25 P/E on 2012 earnings: 17.2x PCTF 0.2091 0.2048 +2.1
PFETIF 0.2701 0.2739 -1.4
P/E Ratio (x)

PNREF 0.2066 0.2055 +0.5

20 PAUEF 0.2572 0.2587 -0.6
PFA30F 0.2151 0.2167 -0.7
PINDOSF 0.2821 0.2808 +0.5
15 PBAEF 0.1919 0.1900 +1.0
PBADF 0.2894 0.2899 -0.2
Average: 16.6x PBEPEF 0.1666 0.1658 +0.5
10
PBCPEF 0.1495 0.1471 +1.6
01 02 03 04 05 06 07 08 09 10 11 12
PBCAEF 0.2172 0.2155 +0.8
PBCAUEF 0.1742 0.1726 +0.9
Regional Markets Valuations PBSGA30EF 0.2665 0.2683 -0.7
PBAPENTF 0.2191 0.2189 +0.1
Prospective Estimated PBAREIF 0.2795 0.2787^^ +0.3
P/E Dividend PBADBF 0.2781 0.2788^^ -0.2
(x) Yield (%) PBINDOBF 0.2645 0.2626 +0.7
Australia 13.41 4.87 PSGEF 0.2650 0.2670 -0.7
PBAEGF 0.2639 0.2628 +0.4
China H Shares 8.96 3.54 PBDYNAF 1.0336 1.0298 +0.4
Hong Kong 11.58 3.35
Thailand 14.17 3.34
Foreign Islamic Funds
2 Nov12 25 Oct'12^ % chng
Taiwan 17.40 3.22 PAIF 0.2600 0.2601^^ -0.03
Singapore 9.45 3.14 PIADF 0.2525 0.2544 -0.7
PIATAF 0.2316 0.2315 +0.04
Shanghai Comp 9.71 2.96 PCIF 0.1755 0.1743 +0.7
Japan 14.00 2.53 PIALEF 0.2441 0.2427 +0.6
Philippines 17.04 2.46 PBIAEF 0.2155 0.2157 -0.1
PBIASSF 0.1859 0.1867 -0.4
Indonesia 16.01 2.09
South Korea 10.58 1.32 * Buying Price
Source: Bloomberg, 2 Nov12 ^ The funds NAV and local indices are based on 25 Oct12 closing prices.
^^Adjusted for distribution
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 BOND MARKET REVIEW: Bond Market Commentary
FORTNIGHT ENDED
2 NOVEMBER12 For the fortnight ended 2nd November 2012,
Public Mutual's Bond Funds Performance the U.S. Treasury market closed firmer as
2 Nov'12 19 Oct'12 % chng investors were concerned over the possible
P BOND 0.9918 0.9901 +0.2
PI BOND 1.0417 1.0397^^ +0.2
effects of Hurricane Sandy on the U.S.
PIN BOND 1.0118 1.0103 +0.1 economy. The 3, 5 and 10-year Treasury
PEBF 1.0697 1.0690 +0.1 yields fell by between 2 basis point (bps)
PSBF 1.0223 1.0207 +0.2 and 5 bps to 0.38%, 0.72% and 1.71%
PIEBF 1.1356 1.1365 -0.1
PISBF 1.0267 1.0252 +0.1
respectively over the fortnight.
PIINCOME 1.0470 1.0452 +0.2
PBFI 1.0635 1.0623 +0.1 The Malaysian Government Securities
PBIBF 1.2020 1.1993 +0.2 (MGS) market closed mixed with the 3 and
PBBMTN1 1.0349 1.0334 +0.1
PBINFBF 1.0662 1.0644 +0.2 5-year MGS yields easing by 8 bps and 3 bps
PIINFBF 1.0720 1.0699 +0.2 to 3.02% and 3.21% respectively over the
PSTBF 1.0675 1.0662 +0.1 fortnight. The 10-year MGS yield rose by 2
PISTBF 1.0687 1.0667 +0.2
PSKF 1.0328 1.0311 +0.2
bps to 3.46% over the same period.
PBBOND 1.0301 1.0291 +0.1
PBSKF 1.0302 1.0284 +0.2 The local corporate bond market closed
PENTBF 1.0117 1.0097 +0.2 higher with the 3, 5 and 10-year AAA
^^Adjusted for distribution
Public Mutual's Money Market Funds Performance corporate bonds yields falling by between 2
2 Nov'12 19 Oct'12 % chng bps and 3 bps to 3.69%, 3.89% and 4.28%
PMMF 1.0094 1.0083 +0.1 respectively over the fortnight.
PIMMF 1.0246 1.0234 +0.1
PBCMF 1.0164 1.0153 +0.1
PBCPF 1.0016 1.0005^^ +0.1 In the money market, the spread of the 3-
PBICMF 1.0147 1.0136 +0.1 month Kuala Lumpur Interbank Offer Rate
PBICPF 1.0030 1.0019^^ +0.1 (KLIBOR) over the 3-month U.S. Treasury
^^Adjusted for distribution
Change in Interest Rates & Bond Yields bill rose to 312 bps from 311 bps over the
2 Nov'12 19 Oct'12 Chng* fortnight as the 3-month KLIBOR rose by 1
3 Month Interest Rates basis point to 3.21% while the 3-month U.S.
KLIBOR 3.21 3.20 +1.0 Treasury bill remained sustained at 0.09%
U.S. T Bill 0.09 0.09 - over the same period.
3 Year
'AAA'Corp. 3.69 3.71 -2.0
MGS 3.02 3.10 -8.0 Looking ahead, the U.S. Treasury bond
U.S. T Note 0.38 0.40 -2.0 prices may experience some volatility in the
5 Year medium term as investors monitor the pace
AAA'Corp. 3.89 3.91 -2.0 of recovery in the U.S. economy.
MGS 3.21 3.24 -3.0
U.S. T Note 0.72 0.75 -3.0
On the domestic front, the MGS market may
10 Year gradually consolidate given the continued
'AAA'Corp. 4.28 4.31 -3.0
MGS 3.46 3.44 +2.0
uncertainties over the global financial
U.S. T Bond 1.71 1.76 -5.0 markets and economic conditions in the
*in basis points near-term.
MGS Yield
6
10 Years MGS

3 Years M GS
2
J an- Oct - J ul- Ap r- J an- Oct - J ul- Ap r- J an- Oct - J ul- Ap r- J an- Oct -
03 03 04 05 06 06 07 08 09 09 10 11 12 12

US Treas ury Bond Yield

6

2 10 Years US T Bond

1
J an- Oct - J ul- Ap r- J an- Oct - J ul- Ap r- J an- Oct - J ul- Ap r- J an- Oct -
03 03 04 05 06 06 07 08 09 09 10 11 12 12

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 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.

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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