ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REPORT & OUTLOOK_November 19, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,186.29 -16.71 -0.40% 1.255b Php7.634b 47 86 36

DAILY WRAP:
Nickel Asia Corporation [pse: NIKL] took centerstage at the opening
bell rising fast to php19.40 before giving in to selling pressures on
profit-taking. It ended the session up 10% from its offer price of
php15.00 apiece.
Interest in other issues continued to wane, however. Just as soon as
the euphoria over NIKL died down, the market took a familiar path
reversing optimism and plunging depths of >30 points before
managing a rebound erasing half of the losses. The PSE index closed
lower at 4,186.89.
Value turnover reached php7.634 billion, inclusive of around php2.5
billion worth of NIKL shares crossed at php15.00. Advancers trailed
decliners 47-to-86 with 36 unchanged.
Investors are obviously challenged to regain their confidence after
the 6.3% drop two weeks ago. So much so that last week's 3.1% rise
failed to induce momentum and sustain the index above 4,200. It
now remains to be seen if year-end index targets which were
aggressively adjusted upwards amid the q3 rally, will be readjusted
downwards. Our firm targets were thrice adjusted to 4,200 from
3,300 and 3,800. We find no immediate reason to revise thw figures.
We are confident the index will be able to hold the 4,000-line at a
minimum although we find less reason to push for a level past 4,200.
OUTLOOK:
The over-all view continues to be encouraging for equities. Interest
rates are not seen to rise at least within the next three-to-six months
giving stocks twin-boosts. With cost-of-money relatively cheap,
companies may be inclined to fund expansion of current or new
businesses - especially if consumer demand gains traction. Lower
interest expense will theoretically free up some cash and expand
earnings. On the other hand, the low rates regime keeps a lid on
returns on alternative instruments. Using the 1-yr (364-day) t-bill rate,
the real risk free rate of return is only 0.6% to nothing. Stocks on the
other hand provides an annualized return of around 40% or an
average of 3.4% per month through October. Notwithstanding the
recent losses, the index' year-to-date return is in the low to mid 30%!
If q3 and the nine month period earnings are sustained, a good number
of firms will exceed or at least match last year's performance. Certain
firms acquisitions this year will begin to show in their statements next
year, for some, as early as next semester.
The market's technical condition has improved an points to a possible
near-term rebound. STO has sustained its break off the trigger line to
a third day and is past the oversold line in the last two. MFI (14) has

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO
OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS
FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE
SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS
REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE
INDUSTRIES MENTIONED.
DAILY Report Page 1 of 2
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REPORT & OUTLOOK_November 19, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,186.29 -16.71 -0.40% 1.255b Php7.634b 47 86 36

breached the 50-line to 51.27, indicating a build-up of upside momentum. Of course, we have to wait for confirmatory signals given that
positive trades Monday were largely driven by the debut of NIKL at the board. Although it is not shown in the accompanying chart, RSI (14)
is poised to rise above the 50-mark as well. MACD's histrogram formation supports our recognitiion of the easing of the selling pressure.
This despite sustained foreign selling which today netted nearly half a billion worth. Various reasons will be given for our expected rally, not
the least of which are bargain hunting and month-end window dressing. Having said that, we remain categorical when it comes to the
prospects of returning to the 4,400-level. That is unless Ireland's problems are addressed to the satisfaction of the markets and investors
act accordingly. The market's near-term top is at the 4,240 mark with support at 4,050.
Additional Notes:

Absent any impetus from the local front, the market will most likely take its cue from overseas developments, particularly the Dow,
Ireland's unfolding fate and China's inflation management. At the close of Monday's trades, Dow futures were pointing to a positive
start with the market anticipated to begin discounting a series of economic reports due out in a holiday-interrupted trading week. US
financial markets will be closed on Thursday in observance of Thanksgiving Day.

New York may take its cue from across the Atlantic Monday, with latest economic data releases not due until Tuesday when the second
estimate of q3 GDP will be made public. There is a general consensus that the 2.0-% pace reported in October may be revised upwards
to 2.3% This indicates efforts to rev up the economy or at least sustain its gradual growth pace is gaining traction and could provide a
more encouraging outlook for the full year. A marginal rise to 4.55 million in existing home sales is likewise seen. Beyond this, the
Street will be dissecting the minutes of the Fed's most recent meeting that led to the decision to initiate what is now known as
“quantitative easing.” Improvements are also anticipated in personal incomes and spending on Wednesday. Jobless claims, normally
released on Thursdays, will be out by Wednesday together with new home sales and durable goods orders.

A glimmer of hope shines in Europe with Ireland's leaders admitting it may need aid from both the European Union and the IMF. It was
quick to point out, however, that such may not be drawn from at all, instead serving as psychological support for buyers of its sovereign
issuances to bridge the budget gap it hopes to bring down to the 3% EU membership mandate. The bail-out package could amount to
<100 billion euros, less than the package put together for Greece which amounted to 110 billion euros in May.

As of mid-session, the Dow is nearly 100 points down, dragged as expected by concerns Ireland's dilemma may spread to equally
trouble-threatened European economies. Earlier, the major equity markets in Europe fell by no less than 30 points or -0.45%.

SELECTED TECHNICAL MEASURES:

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO
OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS
FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE
SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS
REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE
INDUSTRIES MENTIONED.
DAILY Report Page 2 of 2