ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week XXIII_June 6 to 10_TD 109-113
1 of 2

WEEKLY MARKET STATS UPDATE:

CATEGORY M EASURE VALUE PREVIOUS W EEK CHANGE% END-DEC2010 CHANGE%
ACTIVITY [YTD
NET VOLUM E 2,869,558,588 2,813,935,618 1.98% 1,637,867,112 75.20%
DAILY AVERAGES]
NET VALUE 4,528,503,861.29 4,500,396,285.22 0.62% 4,603,800,556.27 -1.64%
ISSUES TRADED 173 173 0.00% N/A N/A
TRADES 15,012 15,045 -0.22% N/A N/A
FOREIGN (BUY) 2,200,096,898.49 2,187,350,876.06 0.58% 1,972,980,083.85 11.51%
FOREIGN (SELL) 2,063,140,628.27 2,047,070,603.45 0.79% 1,752,691,290.38 17.71%
FOREIGN (NET) 136,956,270.22 140,280,272.61 -2.37% 220,288,793.48 -37.83%
INDICATORS AD Line -677.00 -695.00 -2.59% -508.00 33.27%
%K STO(14,3) 82.46 34.25 140.74% 95.12 -13.31%
%D (STO(14,3,3) 71.56 30.66 133.40% 72.13 -0.79%
RSI(14) 54.45 53.48 1.81% 56.61 -3.82%
EM A(10) 4,280.36 4,258.06 0.52% 4,149.40 3.16%
EM A(50) 4,209.79 4,191.93 0.43% 4,119.42 2.19%
EM A(150) 4,050.23 4,033.73 0.41% 3,839.39 5.49%
PHILIPPINE MARKET STATS MAJOR INFLUENCES THIS WEEK:
INDEX LAST WEEK% YTD%
PSEI 4,297.62 0.54 2.30 IN FOCUS: Philippine May inflation, developments in Europe's
ALL 3,020.59 1.38 0.47
search for answers to the debt-problem, and US economy.
FIN 962.29 1.78 0.09
IND 7,196.29 2.22 -0.34
HDG 3,538.72 1.04 4.43 PHILIPPINE consumer price index is seen to keep the rising trend
PRO 1,536.30 -0.84 -2.92 over the first four months of the year. Inflation came in at a 4.5%
SVC 1,540.10 -2.67 -3.16 pace last month on the back of sustained increases in oil and
M&O 18,823.76 1.77 34.96 commodity prices, a situation that has generally persisted through
WORLD MARKETS May. In addition, the increased spending leading up to the school
INDEX LAST WEEK% YTD% opening Monday, may have added upward pressure on prices. The
DOW 12,151.30 -2.33 4.96 numbers are to be released Tuesday and the market is seen to begin
S&P 1,300.16 -2.32 3.38
to factor in their expectations early on. A further rise in the figure
NASDAQ 2,732.78 -2.29 3.01
FTSE 100 5,855.01 -1.41 -0.76
will negatively impact on equity prices as it may keep a lid on
DAX 7,109.03 -0.76 2.82 spending, depriving manufacturers their principal motivation to rev
CAC 40 3,890.68 -1.53 2.26 up production and capacity levels.
MSCI APEX 50 902.51 0.38 4.20
TOPIX 816.57 -1.01 -9.15 Europe will continue to keep bated breath as the zone's finance
NIKKEI 225 9,492.21 -0.31 -7.20 ministers are due to meet in Brussels late in the week to approve a
HANGSENG 22,949.60 -0.73 -0.37 second bail-out for Greece. On a positive note, there is already an
SHANGHAI 2,728.02 0.67 -2.85 agreement in principle that help will be forthcoming to the troubled
TAIEX 9,046.28 2.68 0.82
economy, at a cost to bondholders. While the direct subject of the
KOSPI 2,113.47 0.63 3.05
S&P/ASX 200 4,583.10 -2.15 -3.42
meeting and the eventual announcement is Greece, the continent will
ALL ORDINARIES 4,666.60 -1.97 -3.72 keep tabs on similar situations prevailing in Ireland and Portugal.
NZ50 3,514.76 -0.37 6.22 This will continue to add volatility to the markets in the region.
SET 1,057.86 -0.86 2.43
JCI 3,844.02 0.30 The US side will be relatively silent with only Thursday's weekly
3.79
BSESN 18,376.50 0.60 jobless claims on top of the economic calendar. Ben Bernanke, the
-10.40
Straits Times 3,145.67 0.32 -1.39
Fed chair, will be addressing the International Monetary Conference,
KLCI 1,559.85 0.72 2.70
sharing his outlook and prognosis on the US economy. This will be a
HO CHI MINH 443.41 7.93 -8.51
major focus for hints, and/or confirmation of the market's perception.
The economy will become more and more a hot issue, as the campaign trail for the 2012 Presidential derby heats up.
Republicans are consciously making it the focal point of the campaign to vote the Democrats out of the White House,

CORPORATE DISCLOSURES: June 3_Friday

SECURITY BANK CORPORATION [pse: SECB]

Disc. No. 4243 s. 2011 ACQUISITION OF PREMIERE BANK
The Bank acquired 98% of the outstanding capital stock of Premiere Development Bank for php1.30 billion, with an
intention to acquire the remaining 2.0% held by the minority.

SECB's Q1 2011 FS shows total resources growing 10.24% from end-2010 levels and 27.8% year-on-year to php183.54
billion. The treasury/investment and corporate banking segments contributed the most to asset growth at 45.45% and
32.30%, respectively. Consumer banking assets added 7.06% to the total. Quarterly profits were php80M more than the
same period last year. The combined increases in the earnings of the corporate, consumer and other operating &
reporting segments managed to offset the -php252m drop in income from treasury operations.

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.
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week XXIII_June 6 to 10_TD 109-113
2 of 2

ALLIANCE SELECT FOODS INTERNATIONAL, INC. [pse: FOOD]

Disc. No. 4254 s. 2011 LOAN GUARANTY COVER
The Company secured a 90% guaranty cover on principal for a US$4.5 million term loan. The Guaranty is valid for seven
(7) years, inclusive of a one (1) year grace period, and is applicable to funds acquired through local financial institutions.
FOOD will be raising the capital to partially fund its acquisition of Spence and Co. Ltd, a Brockton, USA-based processor
of smoked fish.

ATOK-BIG WEDGE CO., INC. [pse: AB]

Disc. No. 4259 s. 2011 SALE OF ATOK GOLD MINING CO.
AB sold its entire holdings in Atok Gold Mining Co., Inc. to the Progressive Development Corporation (PDC) – a member
of the Araneta Group of Companies and a shareholder of AB. As at the end of Q1 2011, PDC held a total of 93,963,474
shares of AB, representing 3.69% of the total.

MARKET'S CONDITION:
6/3/2011
Based on 19 global markets' TTM PE multiples as an
indicator of relative valuation, Philippine equities are NZ50

KOSPI
collectively just above the median and average of 14,27x JCI
and 14.57x, respectively. Thus local shares are neither NIKKEI

over- nor over-valued, keeping it in the radars of fairly KLCI

valued securities. Compared to its peers in the ASEAN 6, SHANGHAI

however, the PSEI is the third most expensive. Lower BOLSA

valuations are presented by Thailand (SET=13.46x), PSEI

Singapore (STI=10.66x) and Vietnam (HCM=9.40x.) S&P500

FTSE100
Nevertheless, at 15.15x, domestic stocks are at historical SET
averages, and substantially below the 2007 bull peak PE DOW
of between 17x and 21x. DAX50

HANGSENG

Note that markets in the west continue to be “cheaper” ASX200

than their counterparts in the Orient. The 30-Company CAC40

Dow Jones Industrial Average is trading at 13.33x STI

BOVESPA
earnings, while the broader S&P 500 is at a marginally HCM
higher multiple of 14.80x. European markets are all - 5.00 10.00 15.00 20.00 25.00
below the Philippine's 15x.

On the technical front, the weekly charts show a slight narrowing of the trading band over the last six (6) weeks. This
results from support managing to hold steady at the 4,170-line while the tops have been dropping marginally from
4,344.10 (week-ending April 29) to last week's 4,332.60.
Nevertheless, value turnover in those weeks have been
rising, at almost a similarly slow pace, from php25.107
billion to php25.997 billion last week. While this reading
doesn't lend us much predictive value, incorporating the
ADL over the same period puts a negative bias – deviating
from the suggestions of both the short-term and long-term
EMA's. Over the six (6) week span, the market's breadth
remains negative, dropping to a nominal value of -677 at
the end of last week from -454 at the end of April. This
supposes the market to be losing some ground, raising the
prospects of a sharp pull-back on the slightest negative
news.

Even as the underlying technical parameters show a

positive momentum in the daily charts, the weekly
perspective is not as encouraging. Current levels remain
pretty much elevated and requires a “corrective” action to
ease overheating pressures, even as only the STO puts the
market in overbought condition.

Market's immediate range for the week is between 4,170

and 4,350.

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.