MARKET WRAP: WEEK ENDED

7 JANUARY ‘11
Bursa Securities vs Public Mutual’s performance* WEEKLY HIGHLIGHTS
7 Jan'11 30 Dec'10 % chng
FBM KLCI 1,572.21 1,518.91 +3.5
FBMS Shariah 10,476.07 10,058.15 +4.2 • The local market kicked off the New
MSCI FEXJ# 533.18 525.05^ +1.5 Year with the FBM KLCI touching a
MSCI World# 330.76 330.64^ +0.04
Local Funds record intraday high of 1,577 points on
PSF 0.6772 0.6549 +3.4 Thursday before closing at 1,572.2
PGF 0.5616 0.5457 +2.9
PIX 0.8077 0.7782 +3.8
points to register a gain of 3.5% for the
PIF 0.5667 0.5450 +4.0 week.
PAGF 0.7826 0.7620 +2.7
PRSF 0.6789 0.6609 +2.7
PBF 0.8035 0.7872 +2.1 • Regional markets generally closed
P SmallCap 0.9346 0.9003 +3.8 higher on continued expectations that
PEF 0.3195 0.3109 +2.8
PFSF 0.2662 0.2553 +4.3 the U.S. and global economic activities
PDSF 0.3151 0.3061 +2.9 are gaining strength.
PSSF 0.3095 0.2992 +3.4
PSA30F 0.3548 0.3405 +4.2
POGF 0.2969 0.2855 +4.0 • Looking ahead, the local market is
PBBF 0.8704 0.8489 +2.5
PBGF 0.8786 0.8464 +3.8
anticipated to move in tandem with
Local Islamic Funds overseas markets as investors continue
P Ittikal 0.9476 0.9215 +2.8 to monitor the outlook for global
PIEF 0.3561 0.3413 +4.3
PIOF 0.3619 0.3425 +5.7 economic activities.
PIBF 0.2870 0.2806 +2.3
PIDF 0.3591 0.3466 +3.6
PISSF 0.3052 0.2933 +4.1 STOCKMARKET COMMENTARY
PISTF 0.3290 0.3138 +4.8
PIOGF 0.3030 0.2906 +4.3
PISEF 0.3658 0.3485 +5.0
Fuelled by buying of selected index
PIA40GF 0.2563 0.2501 +2.5 stocks, the FBM KLCI rose to a record
PBIEF 0.2717 0.2596 +4.7 intraday high of 1,577 points on Thursday.
Foreign Funds
PFES 0.3003 0.2909 +3.2
Sentiment was also lifted by firmer
PRSEC 0.2655 0.2554 +4.0 offshore markets. The index closed at
PGSF 0.2076 0.2029 +2.3 1,572.2 points for the week with an
PFEDF 0.2540 0.2474 +2.7
PFEBF 0.2280 0.2243 +1.6 increase of 3.5%.
PGBF 0.2176 0.2151 +1.2
PCSF 0.1899 0.1878 +1.1
PFEPRF 0.2348 0.2325 +1.0 The average daily trading volume
PSEASF 0.2763 0.2723 +1.5 increased to 1.6 bil units from 0.9 bil units
PFECTF 0.3193 0.3110 +2.7
PCTF 0.2418 0.2378 +1.7
in the preceding week while average
PFETIF 0.3582 0.3464 +3.4 trading value rose to RM2.4 bil from
PNREF 0.2813 0.2750 +2.3 RM1.4 bil over the same period.
PAUEF 0.2717 0.2814 -3.4
PFA30F 0.2732 0.2644 +3.3
PINDOSF 0.2447 0.2480 -1.3 On Wall Street, share prices remained firm
PBAEF 0.2884 0.2792 +3.3
PBADF 0.2793 0.2742 +1.9
following better-than-expected economic
PBEPEF 0.2006 0.1966 +2.0 data and positive corporate earnings. After
PBCPEF 0.1768 0.1722 +2.7
PBCAEF 0.3534 0.3390 +4.2
hitting a 29- month high of 11,723 points
PBCAUEF 0.2722 0.2694 +1.0 on Wednesday, the Dow eased on profit-
PBSGA30EF 0.2829 0.2816 +0.5 taking to close at 11,675 points, up 0.8%
PBAREIF 0.2515 0.2486 +1.2
PBADBF 0.3002 0.3081 -2.6 for the week. The broader-based S&P 500
PBINDOBF 0.2396 0.2419 -1.0 Index rose by 1.1% to 1,272 points while
Foreign Islamic Funds
PAIF 0.2772 0.2741 +1.1
the Nasdaq was up 1.9% to 2,703 points
PIADF 0.2391 0.2358 +1.4 over the same period.
PIABF 0.2316 0.2299 +0.7
PCIF 0.2107 0.2072 +1.7
PIALEF 0.2661 0.2623 +1.4
PBIAEF 0.2279 0.2253 +1.2
PBIASSF 0.1895 0.1875 +1.1
Capital Protected Funds
PCPSPF 1.1134 1.1152 -0.2
PBCPDF 1.0593 1.0583 +0.1
PBCPRF 1.1042 1.1049 -0.1
#
*Buying Price, in USD ^Index as at 31 Dec'10

1
In the U.S., manufacturing activities As at 7th January 2011, the local stock
improved with the Institute of Supply market is valued at a P/E of about 16.7x
Management Purchasing Managers’ Index on 2011 earnings, which is comparable to
rising to a 7-month high of 57.0 in its 10-year average P/E ratio of 16.7x. The
December from 56.6 in November on local market is also supported by a gross
higher production and new orders. The dividend yield of 3.3%, which is lower
U.S. labour market continued to recover than the 10-year average of 3.6% but
with non-farm jobs rising to 103,000 jobs exceeds the 12-month fixed deposit rate of
in December from 71,000 jobs created in 2.85%.
November due to increased hiring in the
private sector. The unemployment rate fell Other Markets’ Performance
to an 18-month low of 9.4% from 9.8% 7 Jan'11 31 Dec'10 % chng
Dow Jones 11,675 11,578 +0.8
over the same period.
Nasdaq 2,703 2,653 +1.9
TOPIX 926 899^ +3.1
Oil prices registered a weekly decline of SH Comp 2,839 2,808 +1.1
3.7% to close at a 3-week low of China*, H share 12,926 12,692 +1.8
US$88.03/brl due to the strengthening of MSCI China 6,918 6,755 +2.4
the U.S. dollar. Hong Kong 23,687 23,035 +2.8
Taiwan 8,783 8,973 -2.1
South Korea 2,086 2,051^ +1.7
On the domestic front, export growth rose Singapore 3,261 3,190 +2.2
to 5.3% in November from 1.3% in Thailand 1,036 1,033^ +0.4
October on higher exports of commodities. Indonesia 3,631 3,704^ -1.9
Meanwhile, import growth slowed to 6.1% * Hang Seng China Enterprise Index
^ Index as at 30 Dec'10
from 12.5% over the same period. As
imports outpaced exports, the cumulative Bursa Securities Market Valuations^
trade surplus for the first eleven months of 7 Jan'11 30 Dec'10 10 yr ave*
2010 narrowed by 5.4% to RM100.5 FBM KLCI 1,572.21 1,518.91 -
billion compared to the previous PER'11(x) 16.68 16.49 16.66
corresponding period. Price/NTA(x) 4.27 3.97 2.52
3mth InterBk 3.00% 2.98% 3.12%
Malaysia’s foreign reserves fell by 0.8% 12mth Fix Dep, % 2.85% 2.85% -
*2001-2010 average
for the whole of 2010 to RM328.6 billion ^PMB In-House Statistics
as at 31st December 2010.
Malaysia’s Economic Snapshot
2009 2010E 2011F
After appreciating by 12.5% against the
GDP growth, % -1.7 7.1 5.5
US$ in 2010, the Ringgit registered a
Inflation, % 0.6 1.7 3.0
weekly decline of 0.3% against the F= forecast
greenback to close at RM3.069.
Bursa Securities 10 year P/E Ratio
Looking ahead, the local market is 30
7 Jan '11
anticipated to move in tandem with P/E on 2011 earnings: 16.7x
overseas markets as investors continue to 25
P/E Ratio (x)

monitor the recovery of global and

20
regional economic activities amidst the
normalisation of interest rates. 15

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

2
 REGIONAL MARKET WRAP: FORTNIGHTLY
WEEK ENDED REGIONAL MARKETS
7 JANUARY ‘11 COMMENTARY
Regional Markets Performance
7 Jan'11 31 Dec'10 % chng WEEKLY HIGHLIGHTS
FBM KLCI 1,572 1,519^ +3.5
MSCI FEXJ# 533 525 +1.5
China*, H share 12,926 12,692 +1.8 • Regional markets generally closed
SH Comp 2,839 2,808 +1.1 higher on continued expectations that
MSCI China 6,918 6,755 +2.4 the U.S. and global economic activities
Hong Kong 23,687 23,035 +2.8 are gaining strength.
Taiwan 8,783 8,973 -2.1
TOPIX 926 899^ +3.1
South Korea 2,086 2,051^ +1.7
• Regional economic activities remained
Singapore 3,261 3,190 +2.2 resilient with Singapore’s 4Q2010
Thailand 1,036 1,033^ +0.4 GDP gaining pace. Although China’s
Indonesia 3,631 3,704^ -1.9 exports moderated in November,
Philippines 4,203 4,201^ +0.03 growth continued at a double-digit
Australia 4,705 4,745 -0.8 pace.
#
in USD * Hang Seng China Enterprise Index
^ Index as at 30 Dec'10
• Regional markets are anticipated to
Regional Economies Snapshot
continue moving in tandem with
GDP Growth (%) 2009 2010f 2011f
global markets as investors monitor
China 9.1 10.0 9.0
the outlook for global economic
Indonesia 4.5 6.0 6.3
activities.
Singapore -1.3 14.7 6.2
Thailand -2.2 7.0 4.5
STOCKMARKET COMMENTARY
Philippines 1.1 7.0 4.7
Taiwan -1.9 10.0 4.4
In North Asia, the Japan market led with a
Hong Kong -2.8 6.3 4.0
weekly gain of 3.1% on expectations of
South Korea 0.2 5.9 4.7
improved exports following the pull-back
Japan -6.3 3.0 1.7
in the Yen against the U.S. dollar. The
Australia 1.3 2.6 2.4
Source: International Monetary Fund, f=consensus forecast Hong Kong and the China ‘H’ shares
markets registered weekly gains of 2.8%
Regional Markets Valuations
Prospective Estimated
and 1.8% respectively.
P/E Dividend
(x) Yield (%) South-East Asian markets closed mostly
Australia 13.44 4.31 higher except for the Indonesia market,
Taiwan 13.01 3.78 which eased by 2% on concerns over
Thailand 12.53 3.55 rising inflationary pressures.
Hong Kong 12.87 3.28
Singapore 14.87 3.04 Down under, the Australian market fell by
Philippines 13.86 3.18 0.8% on declines in mining stocks and
China ‘H’ Shares 11.10 3.12 concerns about the economic impact of
Indonesia 14.47 2.22 severe floods in Queensland.
Shanghai Comp 13.34 2.22
Japan 15.96 1.95
South Korea 10.61 1.36
Source: Bloomberg, 7 Jan’11

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

26 Average: 15.79
23

20

17

14

11

8
7 January '11 = 12.84x
5
1988 1992 1996 2000 2004 2008

3
 Based on advance estimates, Singapore’s GDP growth gained pace to 12.5% in 4Q2010
from 10.5% in 3Q2010 due to higher manufacturing output, which accelerated to 28.2% in
4Q2010 from 13.8% in 3Q2010 led by strong pharmaceutical production. For the whole of
2010, Singapore’s GDP grew by 14.7% after contracting by 1.3% in 2009 on the back of
stronger growth in the services and manufacturing sectors.

China’s export growth moderated to 17.9% in December from 34.9% in November on

lower exports to the U.S., Japan and selected ASEAN countries. Meanwhile, import growth
eased to 25.6% from 37.7% over the same period. As imports grew by a larger margin than
exports, China’s cumulative trade surplus for the whole of 2010 narrowed by 6.6% to
US$183.1 billion versus a surplus of US$196.1 billion in 2009.

As at 7th January 2011, the valuations of regional markets, as proxied by the MSCI Far
East ex-Japan Index, is at a P/E of 12.8x on 2010 earnings, which is 18.7% 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 on 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 11th May 2010 and expires on 29th April 2011, Public Optimal
Growth Fund dated 8th June 2010 and expires on 29th April 2011, Public Indonesia Select Fund dated 1st
September 2010 and expires on 29th April 2011, Supplemental Prospectus of PB Islamic Equity Fund dated
8th October 2010 and expires on 29th April 2011, PB Indonesia Balanced Fund dated 12th October 2010 and
expires on 29th April 2011, Supplemental Prospectus of Public Islamic Dividend Fund & Public Islamic
Balanced Fund dated 1st November 2010 and expires on 29th April 2011, Public Islamic Alpha-40 Growth
Fund & Public Islamic Infrastructure Bond Fund dated 16th November 2010 and expires on 29th April 2011,
and 2nd Supplemental Prospectus of Public Islamic Equity Fund dated 1st December 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