ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REPORT & OUTLOOK_for December 1, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
3,953.70 -99.88 -2.46% 1.448B Php8.414B 36 100 29

Overview:
TOO many distractions have surfaced in the recent days and weeks
keeping investors at the sidelines with most staying at the market
doing so to book profits or cut early losses. While there have been
bargain hunters on the prowl, their numbers have not sufficed to lend
support to the market, sending the index lower and lower.
At the local front, it began with disappointment over the earnings of
the two leading telcos. PLDT [pse: TEL] showed a mere 7% year-on-
year growth while Globe Telecoms [pse: GLO] reported a -24%
squeeze. Ireland then took center stage in the same manner Greece
did in mid-Q2. China's inflation provided an added to pessimism with
Hong Kong raising fees and levies and putting restrictions on real
estate purchases by foreigners. Over the weekend, President Obama
ordered a freeze on federal wages, citing the economy's growing
deficit. And if these weren't enough, North Korea attacked a South
Korean island spawning talks of heightened conflict. All these are not
perceived as supportive of the growth momentum built up, slow
though it has been.
Depending on how credible whistle-blower website http://wikileaks.org
is, US banks may face yet another challenge to overcome negative
perception. The controversial website is said to release “behind-the-
scenes” of bank executives dealings touching on what its maker Julian
Assange calls an “insight into how banks behave at the executive level
in a way that will stimulate investigations and reforms.”
Sentiments at the local market have been dragged by these external
factors, pulling the index off its high feeding pessimism further as it
broke through interim support levels. This despite positive, even
encouraging numbers in the country's macro-fundamentals as well as
listed firms' performance through q3 2010. It's no secret that a good
number of companies reported double-digits year-on-year growths
with not -a-few even doubling year-ago levels.
Daily Wrap:
The PSE Index broke the 3,970-major support line as it fell nearly
100-points to close out November with at 3,953.70, a hefty 7.38%
loss on the month. All sectors slipped except for Services and Mining & Oil which rose 0.51% and 1.09%, respectively. Europe
continues to be the main drag on sentiments. US markets fell Monday night and futures index are deep in negative territory at the
close of Philippine trades. Only the FTSE 100 (London) showed marginal gains of 1.00 points. Asian markets likewise slumped.

Over the weekend, the European Union and IMF have agreed to provide 85 billion euros in bail-out funds to troubled Ireland. This
failed to assuage fears of the contagion spreading, with keen eyes now trained towards Portugal and Spain.

Adding to worries moving forward is the magnitude of Tuesday's slide accompanied by value turnover spiking to php8.4 billion, more
than twice the year-to-date average. Decliners led advancers 3-to-1 and only 29 stocks traded were unchanged.

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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.
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