ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REVIEW & OUTLOOK_ TD016 & 017_2011_January 24-25, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,902.71 -48.33 -1.22% 1,337.31 4,609.97 22 113 37

Daily Wrap PHILIPPINE M ARKET, DAILY STATS

SECTOR INDEX Pts Change % CHANGE
BACKDROP. ALL 2,952.31 -41.27 -1.38%
FINANCIAL 877.53 -17.50 -1.96%
Outlook for Q4 US GDP improves; report out Friday; Fed meets on INDUSTRIAL 6,932.34 -59.23 -0.85%
Thursday HOLDING FIRM S 3,066.98 -74.96 -2.39%
Backed by the biggest rise in consumer spending in four years, US PROPERTY 1,443.77 -19.61 -1.34%
Q4 GDP is anticipated to have grown at a 3.5% annual pace, SERV ICES 1,553.39 -11.06 -0.71%
improving on the prior quarter's 2.6% clip. The report is due at the M INING & OIL 13,767.84 -264.69 -1.89%
end of the week. Consumer spending, accounting for over 70% of As of 1209H End of Day

the economy, increased at a 4.0% annual pace, levels last ASIAN M ARKETS LATEST UPDATE
experienced in the same quarter in 2006. COUNTRY INDEX LAST % CHANGE
ASIAN REGION M SCI APEX 50 884.01 -0.14%
The US Federal Reserve will meet on Thursday, 0315H (Manila) JAPAN TOPIX 913.05 0.24%
with analysts not expecting changes. The minutes of the previous JAPAN NIKKEI 225 10,313.16 0.38%
meeting will be simulatneously released. CHINA HANGSENG 23,860.35 -0.07%
CHINA SHANGHAI 2,712.67 -0.10%
Europe falters on China concerns, concerns on debt ease; euro
TAIWAN TAIEX 8,941.50 -0.14%
gains vs dollar, yen
SOUTH KOREA KOSPI 2,069.47 -0.02%
Europe registered its first weekly drop this year, as concerns over AUSTRALIA S&P/ASX 200 4,781.10 0.53%
China's monetary policy intensified. Nevertheless, optimism at AUSTRALIA ALLORINDARIES 4,883.60 0.47%
home rose, as the economic zone's leaders acts to address the NEW ZEALAND NZ50 3,360.19 0.22%
debt crisis plaguing its members. Spreads on credit default swaps PAKISTAN KARACHI 100 12,431.91 0.16%
narrowed. SRI LANKA Sri Lank a Colom bo 7,254.01 0.85%
THAILAND SET 992.04 -1.44%
Germany, who at one time was the “thorn” in the debates to expand INDONESIA JKSE 3,349.72 -0.88%
a financial support facility for troubled members, has withdrawn its INDIA BSESN 19,007.53 -0.20%
opposition and come out actively behind it. A “comprehensive SINGAPORE Straits Tim e s 3,200.61 0.50%
package” is seen to be assembled by March. M ALAYSIA KLSE 1,542.35 -0.33%
Business confidence in the zone's largest economy climbed to V IETNAM HO CHI M INH 512.86 -1.28%
110.3 this month half-an-index-point up from December, the highest BANGLADESH DSE Ge ne ral Inde x 6,326.34 -8.49%
since reunification in 1991. M ONGOLIA M SE Top 20 17,431.50 2.71%
LAOS Laos Com pos ite 1,329.99 9.04%
Last week, the euro gained 1.7% versus the US dollar to $1.3621 As of 1200H End of Day
and 1.4% against the yen. It has climbed 2.0% against a basket of
developed world currencies, reversing last year's 10% slide.
Index futures are all in the green positing a rebound in the region's stock markets this afternoon.
Asian benchmark rebounds off first weekly drop in the last six
Expectations of and actual earnings pushed the MSCI Asia Pacific Index higher, possibly reversing last week's 1.7% fall.
Japan's Topix rose after a automaker Honda Motor Co.'s rating was upgraded to a “buy” from “neutral.”
Initial effects of China's monetary tightening has led to a record start for the debt market with companies raising 4x more from bonds than
equities. On a year-to-date, bond sales have totaled 100 billion yuan (~US$15.2 billion.), nearly 70% more, year-on-year. Companies have
opted for direct issuances after the PBOC hiked both deposit and borrowing rates. Analysts forecast more tweaks in this tool in the coming
months. Both Chinese stock markets trade lower.
Government seen to keep targets
Philippine economic managers are not seen to tweak the macro-targets in its review session this week. GDP is seen to grow at a 7.0%-8.0%
pace this year. Note however that the 2011 budget was premised on a 5.0% growth rate, with optimism hinged on the successful roll-out of
the Private-Public Partnership thrust.
Last Friday, the BSP announced that Universal & Commercial Banks' (U/KBs) non-performing loans (NPL) ratio eased 0.13 percentage
points to 3.07 in November. Year-on-year, the improved was even more marked at -0.19 percentage points. The number has been below

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 REVIEW & OUTLOOK_ TD016 & 017_2011_January 24-25, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,902.71 -48.33 -1.22% 1,337.31 4,609.97 22 113 37

4.0% over the last two years, indicating the stability in the domestic banking sector. Month-on-month, soured loans were 0.2% less while the
Total Loan Portfolio (TLP) grew 4.14 percent.
Technical Indications not too encouraging
The technical backdrop as the week begins provides no encouragement except on hopes of a technical rebound. The market gave up-181
points in the just-concluded-week, pulling the index below what previously seemed like strong support levels. I
The main upside target for a possible restoration of the consolidation trend is at 4,120. Over the immediate term, a reaction rally should
reach to 4,030-line.
MARKET'S REACTION:
Investors found no reason to cheer improved outlook for the US
economy, the optimism over Europe's oncoming “comprehensive
package” nor the general advance in the Asian region. Pessimism
was thick right off the bat, sending the Index to test the major 3,880
support line in the first 30 minutes before the bulls entered the
picture, battling the bears through the closing bell, drawing an
almost sideways movement for the remainder of the session. Not
even the positive pronouncements from domestic economic
managers, and expectations that 2010 GDP targets will be
surpassed, managed to turn sentiments.
The PSE Index shed -48.33 points (-1.22%) to end the day at
3,902.71, just 0.15 points above its September 9, 2010 level. The
index has now lost -245.45 points (-5.92%) over five successive
sessions in the red. The broader All Share Index slumped -1.37%
extending the slump to a third day. None of the subindices
escaped the sell-off, even as the Service sector continued to hold
fort, dropping by only 0.70%, the least of the lot.
Value turnover slipped, finishing below the php5.0 billion line for a
second straight session. Advancers continues to trail decliners,
losing today 5-to-1.

OUTLOOK FOR TD017_January 25_Tuesday

All technical measures point to a further deterioration of the
market's condition. As yet, we find no signs of a dissipation of the
negative pressure.
The index will have to find a more even footing after breaking under a consolidation range. A consolation for the day is that it “respected” the
3,880 major support line. At this point, STO (10,6) remains below its trigger line even as it falls further into oversold territory. The negative
MACD (12,26) spread widens further to -23.3381, over 4x the gap at its break below the signal line that accompanied a 0.4% index rise to its
interim high close of 4,148.16 last January 17. It is notable however, that the “pace” at which the gap has expanded slowed to 27% from it's
fastest of 38.1% two days after the break. Ceteris paribus, this supports the observed thinning of the aggregate value turnover as a possible
indication of an oncoming rebound. Thus, even as the AccDist Line draws an unmistakable bias for distribution, we are looking at increasing
hints of a rebound before the week is out.
The news-front provides some potential jump off points for the expected technical rebound. Optimistic expectations from data in the US, the
positive developments in Europe, with the euro seen to hold and stabilize at the $1.30 level, and as economic targets are re-adjusted to
discount the possible ill-effects of China's aggressive monetary tightening, not to mention the US Fed's meeting and GDP results towards the
end of the week, will encourage punters and bargain hunters back to equities – at least for possible short-term trading gains.
Support remains at the 3,880 mark. A break under this line, which coincides with the 150pdEMA, may induce further selling, putting off all
bets until the index stabilizes and builds a new, decent support. We keep initial upside target towards a test of the 4,000-4,030 range.

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