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 _for December 8, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,197.92 25.20 -0.60% 894.025M P5779.245M 51 78 46

Daily Wrap:: Dec 7_Tuesday SECTOR INDEX % CHANGE VALUE

ALL 2,892.17 -0.05%
FINDING very little reason to push equities higher, investors FINANCIAL 975.30 -0.54%
lightened their positions while others kept to the sidelines INDUSTRIAL 7,013.70 -0.42%
waiting for further signals, sending the PSE Index lower by HOLDING FIRMS 3,469.74 -1.21%
-25.20 points or -0.60% to 4,197.92. PROPERTY 1,572.18 -0.06%
SERVICES 1,507.54 -0.34%
The broader measure, All Shares Index, slipped 1.51 points or MINING & OIL 12,973.51 1.32%
-0.05% to 2,892.17. The mining and oil sector escaped with TRADES 13,990
gains of 1.32%. BLOCK SALES
FOREIGN TRADES
Market breadth returned to the negative erasing 25% of the In Php Millions As of 1209H 12/07/10
accumulated positive gap over the four prior sessions. ASIAN MARKETS
COUNTRY INDEX LAST % CHANGE
The backdrop for Tuesday's trades was somewhat mixed, with JAPAN TOPIX 877.98 -0.39%
the Dow slipping -19.90 points, trading in a narrow 35-40 JAPAN NIKKEI 225 10,113.25 -0.53%
CHINA HANGSENG 23,395.44 0.68%
points band. The measure broke into positive territory briefly
CHINA SHANGHAI 2,847.78 -0.33%
in the early morning, and later in mid-afternoon session. TAIWAN TAIEX 8,692.59 -0.11%
Earlier, European markets failed to inspire, with the London SOUTH KOREA KOSPI 1,958.80 0.26%
THAILAND SET 1,040.13 0.59%
and Frankfurt markets rising marginally by 0.43% and 0.10%,
INDONESIA JKSE 3,722.35 0.71%
respectively. The Paris bourse was almost unchanged with a INDIA BSESN 20,006.53 0.13%
mere -0.04% drop. SINGAPORE Straits Times 3,177.47 -0.12%
MALAYSIA KLSE 1,501.74 0.05%
The contentious debates on the expiring Bush-era tax cuts VIETNAM HO CHI MINH 462.38 -0.68%
may have entered a paved, but still narrow road with
President Obama agreeing to its extension subject to certain conditions, such as extending federal unemployment insurance and a
2% cut in payroll taxes. Republicans, who assumes control of the legislature in the next session, have been pushing for a permanent
tax cut on the wealthiest Americans. The US is trying to contain its huge budget deficit and these tax cuts are hurting the effort.
Thus, Obama is pressed to balance sustaining the recovery by placing money in households and maintaining the economy's fiscal
health.
Asia, on the other hand, is reeling from the “ill-effects” of their own currencies' strength. Principally export-dependent nations, the
Philippines included, earnings from this segment are expected to be squeezed. Tensions in Korea and China's creeping problem
with inflation add to concerns the region which has led global recovery may encounter some serious headwinds moving forward.
China, which continues to hold a de-facto peg on the dollar, has seen liquidity/money supply rise 19% in November, year-on-year.
The Government had held in abeyance upward adjustments in its interest rates, a move that should help temper inflationary
pressures, as it “protects” the second largest economy's export revenue. Experts anticipate a 1.0% hike in benchmark and deposit
rates to rein in prices which is seen to pass 4% next year. GDP for 2011 is seen to “slow” to 9.2% from the 2010 forecast of 10.0%.
Analysis & Outlook

This strengthens our view that sustaining the measure past the 4,200-4,250 range requires a lot more than a Santa Claus rally. We are
seeing the light at the end of the long tunnel of recession. However, from time to time, a shadow is cast lending uncertainty to the
direction. Over-all however, the worst may have already past with only Europe posing a threat big enough to send confidence spiraling
down again. Other developments, including the brewing Korean conflict, present glitches that otherwise are overcome soon after it
surfaces. Domestically, the increases in the retail prices of NFA rice and LPG will add inflationary pressures for December. Nevertheless,
we are confident the macro-targets will be met. Immediate support and resistance levels remain unchanged.

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.
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