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 & OUTLOOK _ TD93-94_May 13-16, 2011
PSEI Pts Change % Change Volume Value Advancers Decliners Unchanged

4,292.11 -19.90 -0.46% 6,469.50 5,128.50 67 65 45

MARKET WRAP & HIGHLIGHTS PHILIPPINE MARKET, DAILY STATS

SEC TO R INDEX Pts C hange % C HANGE

F OR a second straight day, Philippine shares closed at its

low, failing to sustain early advances.
strong rebound in US stocks in afternoon trades
Not even a
ALL
FINANCIAL
INDUSTRIAL
3,002.72
943.62
7,144.50
-4.04
-6.36
6.06
-0.13%
-0.67%
0.08%
encouraged the locals to beef up their equity portfolios, HOLDING FIRMS 3,600.33 3.54 0.10%
PROPERTY 1,578.54 -12.86 -0.81%
opting instead to book gains ahead of a regular weekend.
SERVICES 1,555.75 -0.29 -0.02%
This despite promising numbers reported by listed firms MINING & OIL 17,850.15 -560.33 -3.04%
for their Q1 operational results. AS of 1210H End of Day
ASIAN MARKETS LATEST UPDATE
The PSEI dropped -19.90 points or -0.46% to close the week below C O UNTRY INDEX LAST % C HANGE
the psychological 4,300-line, paring one percentage point off the ASIAN REGION MSCI APEX 50 908.16 0.34%
week's biggest gain of 2.7%. The broader All shares measure also JAPAN TOPIX 839.94 -1.11%
fell, but managed to hold the 3,000-mark. Holdings Firms and JAPAN NIKKEI 225 9,648.77 -0.70%
CHINA HANGSENG 23,276.30 0.88%
Industrial counters tempered the decline, posting marginal gains of
CHINA SHANGHAI 2,871.03 0.95%
0.10% and 0.08%, respectively. TAIWAN TAIEX 9,006.61 -0.30%
SOUTH KOREA KOSPI 2,120.08 -0.12%
US retail sales posted a 0.5% rise in April, reflecting the impact of AUSTRALIA S&P/ASX 200 4,711.40 0.33%
higher food and oil prices. This is the minutest positive change AUSTRALIA ALLORINDARIES 4,787.30 0.22%
since July and trails the 0.9% uptick in the previous month. NEW ZEALAND NZ50 3,535.79 -0.13%
Netting out sales of cars and fuel, the change even narrows to THAILAND SET 1,084.96 -0.12%
0.2%. One question this data puts on the table is whether the rise INDONESIA JKSE 3,832.02 0.61%
INDIA BSESN 18,531.30 1.07%
is owed primarily to price changes rather than increased volume of
SINGAPORE Straits Times 3,163.68 1.06%
sales. Thus, the indications of whether business activity is picking MALAYSIA KLSE 1,540.74 0.55%
up is somewhat clouded. Nevertheless, one one hand, the bigger VIETNAM HO CHI MINH 479.67 -0.51%
sales is a boon to business, even as it is marginal. On a positive www.bloomberg.com As of 2335H 5/13/11
note, jobless insurance claims fell by 44k, albeit missing forecast,
A pick up in the job market is crucial to sustaining the US economy's recovery, with consumer spending accounting for over
a-third of GDP. Yet even as stock futures climbed on the back of these reports, trades opened on the weak side with the
Dow dropping by nearly 100 points through the first half hour.

European markets were dragged by an earlier sell-off in Asia, rattled further by yet another round of hikes in the China's
bank reserve requirements announced prior to the open. This further dampened sentiments already roiled by concerns
over the region's debt crisis. Recall that absent the unanticipated tensions that arose in the MENA region and the twin
natural disasters that shook Japan more than a month ago, China's inflation and Europe's debt were the fulcrum on which
our 2011 projections revolved. More specifically, it was to be the main source of our expected “weakness” that greeted the
year.

Local market sentiment however continues to borrow support from positive earnings numbers so far. Among the host of
companies that have released Q1 2011 results, only PLDT (pse: TEL) has proved disappointing. The rest have reported
double digit year-on-year bottom-line growths, save for a couple of firms with “slower” pace.

Trading volume reached 6.5 billion shares, with erstwhile favorite Lepanto Consolidated Mining Co.'s “A” and “B” [pse:
LC/LCB] shares accounting for nearly 10% of the aggregate. Value turnover, on the other hand remained “thick” at
php5.128 billion, nearly 15% more than the year-to-date average.

Preliminary OUTLOOK for TD94_May 16, 2011

The intermittent negative numbers from abroad have, so far, not rattled domestic investors enough to warrant a huge sell-
off. What we have mostly seen in the recent decline (towards the end of last week), while indeed reactions to drops in
global equity markets, were no more than profit-taking on the back of the re-surfacing of doubts on the strength of global
economic recovery.

We will continue to keep one eye focused overseas, particularly in Europe's debt and the US budget deficit debates. On

, 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 WRAP & OUTLOOK _ TD93-94_May 13-16, 2011
PSEI Pts Change % Change Volume Value Advancers Decliners Unchanged

4,292.11 -19.90 -0.46% 6,469.50 5,128.50 67 65 45

both fronts, even as we recognize the difficult challenges that the respective nations must overcome, we remain optimistic
that a satisfactory resolution will happen sooner-than-expected. Over the short-term, the main threats to the local
economy are inflation and its impact on interest rates. Government has so far been able to exercise fiscal discipline,
managing the deficit well, thus off-setting concerns on constricting credit flows to the private sector. Furthermore, the
relative political stability, absent in the previous administration, has allowed business to focus efforts on what they do best
– grow their enterprises.

, 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