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 XXIV_June 13 to 17_TD 114-118

1 of 2 WEEKLY MARKET STATS UPDATE:
CATEGORY ACTIVITY [YTD DAILY AVERAGES] M EASURE NET VOLUM E NET VALUE ISSUES TRADED TRADES FOREIGN (BUY) FOREIGN (SELL) FOREIGN (NET) AD Line %K STO(14,3) %D (STO(14,3,3) RSI(14) EM A(10) EM A(50) EM A(150) VALUE 2,834,409,774 4,484,687,751.92 172 14,955 2,178,934,273.73 2,048,279,430.89 130,654,842.84 -763.00 34.87 39.84 45.43 4,251.82 4,214.95 4,062.37 PREVIOUS W EEK 2,869,558,588 4,528,503,861.29 173 15,012 2,200,096,898.49 2,063,140,628.27 136,956,270.22 -677.00 82.46 71.56 54.45 4,280.36 4,209.79 4,050.23 CHANGE% -1.22% -0.97% -0.58% -0.38% -0.96% -0.72% -4.60% 12.70% -57.71% -44.33% -16.56% -0.67% 0.12% 0.30% END-DEC2010 1,637,867,112 4,603,800,556.27 N/A N/A 1,972,980,083.85 1,752,691,290.38 220,288,793.48 -508.00 95.12 72.13 56.61 4,149.40 4,119.42 3,839.39 CHANGE% 73.05% -2.59% N/A N/A 10.44% 16.86% -40.69% 50.20% -63.34% -44.77% -19.75% 2.47% 2.32% 5.81%

INDICATORS

PHILIPPINE MARKET STATS LAST WEEK% PSEI 4,219.58 -1.82 ALL 2,979.87 -1.35 FIN 946.61 -1.63 IND 7,168.87 -0.38 HDG 3,468.57 -1.98 PRO 1,500.50 -2.33 SVC 1,505.12 -2.27 M&O 18,315.38 -2.70 WORLD MARKETS INDEX LAST WEEK% DOW 11,951.90 -1.64 S&P 1,270.98 -2.24 NASDAQ 2,643.73 -3.26 FTSE 100 5,765.80 -1.52 DAX 7,069.90 -0.55 CAC 40 3,805.09 -2.20 MSCI APEX 50 874.02 -3.16 TOPIX 817.38 0.10 NIKKEI 225 9,514.44 0.23 HANGSENG 22,420.40 -2.31 SHANGHAI 2,705.14 -0.84 TAIEX 8,837.82 -2.30 KOSPI 2,046.67 -3.16 S&P/ASX 200 4,562.10 -0.46 ALL ORDINARIES 4,634.90 -0.68 NZ50 3,490.63 -0.69 SET 1,020.37 -3.54 JCI 3,787.65 -1.47 BSESN 18,268.50 -0.59 Straits Times 3,078.35 -2.14 KLCI 1,556.19 -0.23 HO CHI MINH 445.00 0.36 INDEX

THIS WEEK'S BACKDROP:

YTD% 0.44 -0.88 -1.55 -0.72 2.36 -5.18 -5.36 31.32 YTD% 3.23 1.06 -0.34 -2.27 2.25 0.01 0.91 -9.06 -6.98 -2.67 -3.67 -1.50 -0.21 -3.86 -4.37 5.49 -1.20 2.27 -10.92 -3.50 2.45 -8.18

IN FOCUS: Global reco-worries raises risk aversion Debts and deficits problems in Greece and the US Multi-week declines in equity prices, major indexes Interest rates Commodity prices fall Corporate goings-on

EAR the halfway mark of the year, global equity markets are reeling from a growing body of evidence that the post-recession clearing once within sight has been clouded. Major stock market indexes extended weekly declines, narrowing year-to-date gains, with fears of a double-dip recession once more rearing its ugly head. This came as poor economic numbers from the US in the prior week continued to be digested in the absence of fresh news and data. This heightening concern has increased investors' aversion to risky assets, with the slower GDP growth seen as reflecting on corporate bottom-lines moving forward. For much of the year-to-date, analysts forecast, which turned cautiously optimistic at the end of last year, have been missed.
PHL IND FRA US GER 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Using the volatility of average monthly returns LDN over the TTM, measured by standard deviation to SIN gauge risk, Philippine stocks top the list of MAL selected indexes comparing the global majors and our peers in the Asean region. The increased AVG RET STDEV uncertainty presented by this measure may have contributed to the market's inability to hold advances, particularly in light of the higher return, lesser risk proposition by neighboring Jakarta Exchange. Last week's action at the local bourse pulled the averages lower. Average volume turnover narrowed by -1.2 percent to a daily pace of 2,834 billion. Value-wise, the squeeze was at a tad lighter, slowing -0.97 percent to php4.485 billion, a level missed in the last eight (8) sessions, even if we include block sale values. Investors have obviously began to take to the sidelines ahead of important data releases GDP in week 22 and inflation last week. Heading into week 24, the market

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 CREDITWORTHINESS 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 XXIV_June 13 to 17_TD 114-118

2 of 2 will again be on edge until Thursday's Monetary Board meeting. The slower-than-projected Q1 GDP growth makes it untenable for the BSP to adjust the rates higher at this time. However, with inflation already tipping the high-end of the full-year target, a pre-emptive move cannot be ruled out. The overnight rates currently stand at 4.5 percent and 6.5 percent, borrowing and lending, respectively.
SIN FRA GER US 5.00 10.00 15.00 20.00

On the valuation-side, based on the above selection of indexes, Philippine equities are relatively expensive relative to its trailing twelve month earnings. Singapore, which returns substantially lower returns at significantly lower risk than the PSEI, is the cheapest in this lot with a PE of slightly above 10x TTM earnings.

With investors giving more weight to avoiding risk, as evidenced by the decrease in fixed-income yields, local stocks may have to drop a bit more to become attractive PHL propositions to institutional clients. In this context, local shares must return at least 4.4 percent to bring it to par MAL with Malaysia in terms of the risk-reward trade-off. Kuala IND Lumpur stocks provide investors with the most return per unit of risk, statistically speaking. Cetris paribus, with index resistance at 4,250, the 4.4 percent return will result from a pick-up at the 4,070-line. Alternatively, with immediate support at 4,170, the investors should find sufficient thrusts from the fundamentals side to propel the index to 4,350 to satisfy the return requirement.
LDN
200 0

-200

-400

-600

-800

-1000

-1200

-1400

The ADL's drop to its lowest level in the last two years makes the first supposition, a drop past the 4,170 a more likely occurrence. The declines in five of the last six sessions, where losers romped over gainers by -101 points, pulled the measure to a year-to-date value of -763, -12.7 percent lower than the previous week's close. Index advances unsupported by a broad support from the number of issues rising or a sustained positive breadth will be short-lived and will eventually lead to quick-profit taking.

The PSEi is currrently trading in a narrow 40-point range between the 10pdEMA and 50pdEMA. The underlying measures of momentum and direction are generally pointing to a neutral sideways action with a slight negative bias. The medium-term line has lost the steepness in its slope and has turned almost flat, even as the longer-term (150pdEMA) line sustains an optimistic direction moving forward. The debates on whether the glitches we are encountering at the moment are of a temporary or a permanent nature will keep the markets volatile, as investors bet on every direction, reacting to short-term stories. As has been mentioned on top, the index' immediate range is between 4,170 and 4,250. We are closely watching the downside, with a breach of the lower end raising the possibility of a retracement to the 4,070-4,100 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 CREDITWORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.

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