ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY WRAP _ TD72-73_April 12-13, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged

4,199.48 -28.51 -0.67% 831.63 4,377.11 28 95 32

MARKET WRAP & HIGHLIGHTS PHILIPPINE MARKET, DAILY STATS

SECTOR INDEX Pts Change % CHANGE
THE MARKET continued to trade along technical guideposts ALL 3,072.84 -23.76 -0.77%
in the absence of strong market moving developments both FINANCIAL 930.67 -1.56 -0.17%
on the domestic and overseas fronts. The rising need for INDUSTRIAL 7,384.71 -79.61 -1.07%
HOLDING FIRMS 3,510.46 -30.95 -0.87%
liquidity entering the tax-deadline Friday and next week's
PROPERTY 1,602.17 -12.72 -0.79%
Lenten break may have also parlayed into a sell mode. SERVICES 1,513.62 -4.80 -0.32%
MINING & OIL 14,953.71 -68.46 -0.46%
The PSE Index fell -28.51 points to 4,199.48, slipping off the AS of 1210H End of Day
opening bell, but managing to trade sideways between 4,185 ASIAN MARKETS LATEST UPDATE
and 4,200 past the first hour. On a positive note, this is above COUNTRY INDEX LAST % CHANGE
the first major support line of 4,170, highlighting a growing ASIAN REGION MSCI APEX 50 901.80 -1.90%
recognition of technical signals and still healthy valuations of JAPAN TOPIX 840.52 -1.39%
JAPAN NIKKEI 225 9,563.93 -1.60%
local stocks. The broader All Shares Index slipped -0.77% as
CHINA HANGSENG 23,958.70 -1.42%
the rest of the market closed in the red. Only 28 stocks CHINA SHANGHAI 3,031.73 0.30%
advanced compared to the 95 that fell. Value turnover TAIWAN TAIEX 8,717.38 -1.83%
reached php4.377 billion on 831 million shares changing SOUTH KOREA KOSPI 2,094.10 -1.33%
hands. AUSTRALIA S&P/ASX 200 4,898.50 -1.46%
AUSTRALIA ALLORINDARIES 4,991.70 -1.45%
Gainers were led by Philippine National Bank [pse: PNB] NEW ZEALAND NZ50 3,453.86 -0.22%
which added 10.7% to php67.50. Last month, the Bank THAILAND SET 1,065.78 -0.98%
INDONESIA JKSE 3,726.99 -0.50%
reported record level earning of php3.54 billion, passing
INDIA BSESN 19,262.50 -0.97%
2009's total by 61 percent. The market has been in wait for SINGAPORE Straits Times 3,133.91 -0.84%
developments on the finalization of its long-announced MALAYSIA KLSE 1,532.46 -0.75%
merger with sister-bank Allied Banking Corporation [pse: ABC] VIETNAM HO CHI MINH 464.29 0.17%
Another Lucio Tan-led unit, PAL Holdings, Inc. [pse: PAL] rose www.bloomberg.com As of 1150H 4/12/11
7.0% to php5.35. The airline is currently facing some labor-
related problems. An early and satisfactory resolution of the impasse will be good for the unit, particularly during a the
traffic-heavy summer months.

JAPAN. The nuclear accident rating may be raised to the highest level as increased threats compel government to widen
the evacuation zone following a series of 7.0+ magnitude quakes that shook the nation last week. The rating may be lifted
to 7, matching Chernobyl in 1986, from the current 5, which in turn is equal to the 1979 partial meltdown of reactors at
the Three Mile Island, Pennsylvania, USA. The Nikkei 225 has dropped -176.55 points (-1.86%) through midday, Tokyo.
Osaka's Topix Index posts a -1.59% -13.58 points loss. Level 7 readings mean there has been a “major release of
radioactive material with widespread health and environmental effects.”

Meanwhile, the International Monetary Fund (IMF) cut its growth forecast for Japan to 1.4% from 1.6% citing pressures
from rising crude oil prices. Even the outlook for the US economy was similarly pulled down to 2.8% from 2.9%, as
unemployment remains elevated above 8% and consumer confidence dropped. The slower growth forecast for the first
and third largest economy, may derail global economic recovery, even as China, the second largest, has shown it can

, 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 3
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY WRAP _ TD72-73_April 12-13, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged

4,199.48 -28.51 -0.67% 831.63 4,377.11 28 95 32

manage its inflation without severely compromising growth. China has been the fulcrum of the world economy, leading
emerging markets, during the 2008 recession.

SOUTH KOREA. The Korean Central Bank has kept interest rates unchanged following two increases, choosing to wait if
Japan's earthquake will adversely impact on its growth prospects given an already volatile consumer prices. The
benchmark 7-day repurchase rate was left at 3.0%, 50 basis points higher than its end-2010 level. Korea, like most Asian
nations, depend to a large extent on exports, which a stronger currency brought about by relatively higher interest rates,
dampens, as it makes locally manufactured products less cheap.

EUROPE. The IMF and the European Central Bank begin preparations and discussions for an estimated 80 billion euro or
US$116 billion bail-out package for Portugal. A package is seen to be reached by May 16, weeks before the country goes to
the polls, following the resignation of Prime Minister Jose Socrates. Mr. Socrates decided to vacate the post after he failed
to convince the Parliament of his budget-deficit plan. Over the last 12-month period, two other Eurozone members have
availed of assistance to save their economies – Greece and Ireland. Like Ireland, Portugal had initially claimed it could
survive on its own. The bravado may have been hinged on Socrates' deficit-reduction, austerity budget which the
Parliament rejected. Five eurozone economies, aptly referred to collectively as PIIGS, were under the scope when the debt
problems first surfaced – Portugal, Ireland, Italy, Greece and Spain. All had debt-to-deficit ratios exceeding the zone's 3.0%
mandate. With Portugal's entry, half of the number have already required a bail-out. This may increase jitters and have
markets take close tabs on the other half moving forward. Credit default swaps and differentials with benchmark German
bonds have fluctuated, some widening to record spreads, indicating a growing wariness over the regions' health.

OUTLOOK for TD 073 APRIL 13

Both ways of looking at the market – technical and fundamental – ironically supports the view that the prospects do not
look as bright for the next two weeks as it did in the last two. Yet again, in terms of the broader picture, our worries are
tempered by the fact that so far, the market has moved within our expectations – give or take a few surprises. Simply put,
we had anticipated a weak start for the year, picking up to a consolidation phase through Q2 and early Q3, before picking
up in the last four or five months to close the year positively. We had looked at an index level of 4,600-4,800, or a full-year
gain of between 10% to 15%, a decent follow-up of 2010's 37.6% return.

The last two weeks have seen the market trading at overbought levels. Eight (8) sessions running, daily STO(14,3,3) has
hovered above the 80-line, although we have yet to see a textbook first signal to aggressively sell the market. The first
warning comes when the STO line falls below the 80-mark a first time, followed by a reaction high above the same line. A
confirmed SELL signal is seen when it breaks under for a second time. Another signal is found when the STO line breaks
convincingly under the signal line. Over the same period, there have been marginal breaks with an ensuing restoration,
also marginal, above the line. The last time STO had an extended run in overbought area was from September 2 to
October 13, 2010 or 26 consecutive days over which time the index posted a 15.95% advance. Although the index
continued to surge to its all time peak of 4,397.30 in November, the ensuing drop in the succeeding 30 days after the first
drop under 80, measured -10%.

, 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 3
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY WRAP _ TD72-73_April 12-13, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged

4,199.48 -28.51 -0.67% 831.63 4,377.11 28 95 32

The loss of upside momentum is even more evident in the

RSI(14), a situation we had already presented in the last
two reports. When the index closed at 4,209.43 last April
4th, RSI(14) was at 78.78. Overbought line for the indicator
is 70. Yet even as the index gained in the next three
sessions to 4,241.01 (April 8th ), RSI(14) drew a divergent
move to 76.22 – adding to the technical pressure to sell.
Similar observations over similar points in time are seen
from both volume and value indicators of On-Balance
Volume (OBV), AccDist Line and MACD(12,26,9.) The
preponderance of leading negative signals from these
indicators makes it untenable for a further buying stance.

On the fundamental front, even as the Aquino Government

continues to hold steadfast to its 7.0% - 8.0% GDP this
year, recent events, albeit mostly external, have led market
watchers to anticipate an adjustment pretty soon to reflect
current realities. Consumer spending, exports and OFW
remittances, three of the main pillars of the domestic
economy, are negatively impacted by the uncertainties
abroad. Rising oil prices and its consequent effect on basic
goods and services will eventually curb spending, if unrestrained. The displacement of Filipino workers from troubled
nations in the MENA region and the natural calamity in Japan, albeit we believe to be temporary, may dent remittance
target which the BSP set at 8.2% this year. Finally, even as we have weaned dependency on the US market for our exports,
the alternative destinations are equally challenged at the moment. We need not mention Japan's state at the moment,
except to say that moving forward, an opportunity looms large. Europe, on the other, has had its problems overshadowed
by the events in the MENA region, but did not solve it. As reported above, Portugal has fallen into the “aid-trap” despite its
early protestations it can handle the crisis on its own. On a lighter note, however, the record high GIR position allows the
economy some buffer to hopefully weather the strain.

On a more micro-level, the first quarter “events”, particularly the weekly price adjustments in pump prices, the transport
fare increase, albeit sugar-coated as provisional, an inflation rate that is closer to the higher end of the target range and
prospects of a follow-up tweak in domestic policy rates by the Monetary Board in the coming months, may eventually
reflect on slower year-on-year numbers for listed companies. Anticipation on this may be one of the factors that has pulled
the market down this week-to-date.

Having said these however, and despite our generally downcast outlook for the balance of the week, and maybe even
through next week, we maintain an optimistic attitude for the rest of the year. Again, as noted on top, the market's
movement has been within our expectations, notwithstanding a couple of surprises – e.g. MENA and Japan. We may see
the market entering into a consolidation phase with a slight downward bias as investors' need for liquidity for Friday's tax
deadline and next week's Lenten break take precedence. This despite still attractive equity valuations.

, 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 3 of 3