4/1/20114/1/20114/1/2011 1 April 2011

Morning Matters
Figure of the Day
While You Were Sleeping

US markets: Negative
Dow futures: +31 (as at 8am Singapore Time)

US Wrap: The Dow Jones Industrial Average fell 30.88 points, or 0.25%, to
close at 12,319.73, the worst level of the session. For the quarter, the blue-
chip index rose 742.22 points, or 6.4%, the best first quarter point gain since
1998 when it gained 891.56 points and the best first quarter percent gain since
1994, when it rose 6.6%. The S&P 500 fell 2.43 points, or 0.18%, to close at
1,325.83. For the quarter, the broad market index gained 68.19 points, or
5.4%, the best percent and point gain in the first quarter since 1998. The
Nasdaq gained 4.28 points, or 0.15%, to close at 2,781.07. For the quarter, the
Home loans continue to jump despite cooling
measures. Check out ' On the Platter'.
tech-heavy index gained 128.20 points, or 4.8%.

The Day Ahead…

Key Market Indices Scoop of the Day: STX OSV bagged its third contract of the year for a
newbuild platform supply vessel (PSV) to an undisclosed customer and we
Value Chg % Chg estimate that the three PSV orders are worth ~NOK0.9b. Additionally, the
company also announced that it has been granted the environmental license
12,319.7 for a planned development of a second shipyard in Brazil. This major
Dow Jones -30.88 -0.25
3 milestone enables STX OSV to strengthen its market leadership in Brazil and
S&P 500 1,325.83 -2.43 -0.18 is a big step to make the NOK3b Transpetro orders effective. We maintain our
Nasdaq 2,781.07 +4.28 +0.15 EPS estimates and TP at S$1.75 based on 12x FY11 P/E. (Jason Saw)
FTSE 100
5,908.76 -39.54 -0.66
Nikkei 9,773.77 +18.67 +0.19 WHAT’S INSIDE?
23,527.5
Hang Seng 2 +76.09 +0.32
Shanghai 2,928.11 -27.66 -0.94 On the Platter
KOSPI 2,106.70 +15.32 +0.73
Banking Sector: Feb 11 Loan Momentum Remains Strong (OVERWEIGHT)
STI 3,105.85 +10.53 +0.34
KLCI 1,545.13 +13.50 +0.88
Insider Trade Highlights 31 Mar 11

Key Indicators Diary of Event

Value Chg % Chg

Oil Price*
(US$/bbl) 106.72 +2.45 +2.35
Gold Price**
(US$/oz) 1432.30 +9.28 +0.65

US$/S$ 1.2605 -0.0013 -0.10

* WTI Crude Future

** Gold Spot

Disclaimer:
DMG & Partners Securities Pte Ltd may have received compensation from the companies covered in this report for its
corporate finance or its dealing activities; this report is therefore classified as a non-independent report. Please refer
to important disclosures at the end of this publication.
 1 April 2011
ON THE PLATTER

Banking Sector: Feb 11 Loan Momentum Remains Strong (OVERWEIGHT)

Leng Seng Choon, CFA (6232 3890, seng-choon.leng@dmgaps.com.sg)

Feb 11 systemic loans rose 17.3% YoY, and 1.6% MoM. MoM expansion came from both
business and consumer loans, with notable MoM contributors being Building and Construction
(+3.6%), Housing and Bridging (+1%) and Financial Institutions (+2.7%). The biggest decline
came mainly from Other business loans (-1.1%). Housing and Bridging loans, with a 23.1% YoY
growth in Feb 11, was the biggest contributor to total YoY loan growth.

UOB remains our top pick, despite its share price outperformance YTD versus peers. We
recommend BUY on UOB given management’s more aggressive stance on loan growth. Whilst
UOB’s share price has outperformed its peers YTD – by rising 3.4%, versus DBS’ 1.4% gain and
OCBC’s 4.3% decline, we note that UOB continues to trade at a low FY11 P/B of 1.4x, a
discount to its historical average of 1.6x, and also lower than its peer OCBC’s 1.5x – UOB has
historically traded at a higher P/B than OCBC. Whilst DBS may trade at only 1.3x FY11 P/B
(lower than 1.35x historical average), we feel that this is justified given expectations of continued
soft SIBOR going forward.

DMG Research
See important disclosures at the end of this publication 2
 1 April 2011

INSIDER TRADES HIGHLIGHTS FOR 31 Mar 11

Share Price % Stake before % Stake after

Company Insider No. of Shares
(S$) transaction transaction
Purchase
Dapai International Chen Xizhong 14,100,000 0.190 51.100 52.520
EDMI SMB United Limited 443,000 na 64.970 65.170
Lafe Corp Lew Syn Pau 358,000 0.060 4.685 4.715
Passion Holdings Decorative Arts 15,524,000 na 28.052 32.033
MIIF Share Buy-Back 1,000,000 0.615 na 0.660
OCBC Share Buy-Back 100,000 9.500 na 0.194
Ryobi Kiso Share Buy-Back 221,000 0.160 na 0.029
SATS Share Buy-Back 200,000 2.550 na 0.045
SIA Share Buy-Back 121,000 13.360 na 0.260
UOL Share Buy-Back 1,094,000 4.790 na 2.190
Sale
Eucon Europtronic Investment Pte Ltd 900,000 na 5.530 5.370
First Ship Lease Trust American International Assurance Company 503,000 na 8.047 7.963
Thakral Prime Trade 65,000,000 na 17.210 14.720
United Fiber System Wisanggeni Lauw 29,000,000 na 7.790 6.760

# Exercise of Rights issue / Share Options / Convertibles / Warrants / Share Issuance.

## Married deal.

DIARY OF EVENTS

28-Mar 29-Mar 30-Mar 31-Mar 1-Apr

US Data
Core PCE (Feb)
Personal Spending (Feb)
Personal Income (Feb)
Pending Home Sales (Feb)
US Data US Data
Consumer confidence (Mar) MBA Mortgage Applications (Mar 25)
ADP Employment Change (Mar)
US Data
Initial Jobless Claims (Mar 26)
Continuing Claims (Mar 19)
Chicago Purchasing Manager (Mar)
US Data
Nonfarm Payroll (Mar)
Unemployment Rate (Mar)
Construction Spending (Feb)
ISM Manufacturing (Mar)

SG Data SG Data SG Data SG Data SG Data

Credit Card Billings/Bad Debts (Feb)
Money Supply (Feb)
Bank Loans & Advances (Feb)

SG Results SG Results SG Results SG Results SG Results

4-Apr 5-Apr 6-Apr 7-Apr 8-Apr

US Data US Data US Data US Data US Data
ISM Non-Manufact. Composite (Mar) Minutes of FOMC meeting Initial Jobless Claims Consumer Credit (Feb)
MBA Mortgage Applications Continuing Claims Wholesale Inventories (Feb)

SG Data SG Data SG Data SG Data SG Data

Electronics Sector Index (Mar) Automobile COE Open Bid Cat A (Apr 6) Foreign Reserves
Purchasing Managers Index (Mar) Automobile COE Open Bid Cat B (Apr 6)
Automobile COE Open Bid Cat E (Apr 6)

SG Results SG Results SG Results SG Results SG Results

11-Apr 12-Apr 13-Apr 14-Apr 15-Apr

US Data US Data US Data US Data US Data
Import Price Index (Mar) Monthly Budget Statement (Mar) Initial Jobless claims (Apr 9) Consumer Price Index (Mar)
Trade Balance (Feb) Fed's Beige Book Continuing Claims (Apr 2) Empire Manufacturing (Apr)
MBA Mortgage Applications (Apr 8) Producer Price Idex (Mar) Industrial Production (Mar)
Advance Retail Sales (Mar) U. of Michigan Confidence (Apr)
Retail Sales Less Autos (Mar)
Retail Sales Ex Auto & Gas (Mar)
Business inventories (Feb)
SG Data SG Data SG Data SG Data SG Data
Advance GDP Estimate (1Q) Retail Sales (Feb)

SG Results SG Results SG Results SG Results SG Results

DMG Research
See important disclosures at the end of this publication 3
 1 April 2011

Buy: Share price may exceed 10% over the next 12 months
Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain
Neutral: Share price may fall within the range of +/- 10% over the next 12 months
Take Profit: Target price has been attained. Look to accumulate at lower levels
Sell: Share price may fall by more than 10% over the next 12 months
Not Rated: Stock is not within regular research coverage

DISCLAIMERS

This research is issued by DMG & Partners Research Pte Ltd and it is for general distribution only. It does not have any regard to the specific
investment objectives, financial situation and particular needs of any specific recipient of this research report. You should independently evaluate
particular investments and consult an independent financial adviser before making any investments or entering into any transaction in relation to
any securities or investment instruments mentioned in this report.

The information contained herein has been obtained from sources we believed to be reliable but we do not make any representation or warranty
nor accept any responsibility or liability as to its accuracy, completeness or correctness. Opinions and views expressed in this report are subject
to change without notice.

This report does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities.

DMG & Partners Research Pte Ltd is a wholly owned subsidiary of DMG & Partners Securities Pte Ltd, a joint venture between OSK Investment
Bank Berhad and Deutsche Asia Pacific Holdings Pte Ltd (a subsidiary of Deutsche Bank Group). DMG & Partners Securities Pte Ltd is a
Member of the Singapore Exchange Securities Trading Limited.

DMG & Partners Securities Pte Ltd and their associates, directors, and/or employees may have positions in, and may effect transactions in the
securities covered in the report, and may also perform or seek to perform broking and other corporate finance related services for the corporations
whose securities are covered in the report.

As of the day before 1 April 2011, DMG & Partners Securities Pte Ltd and its subsidiaries, including DMG & Partners Research Pte Ltd, do not
have proprietary positions in the subject companies, except for:
a) Nil
b) Nil

As of the day before 1 April 2011, none of the analysts who covered the stock in this report has an interest in the subject companies covered in
this report, except for:
Analyst Company
a) Leng Seng Choon OCBC
b) UOB UOB

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DMG Research
See important disclosures at the end of this publication 4