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 TD013_2011_January 19_Wednesday
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
4,039.56 -33.03 -0.81% 1,849.31 5,521.78 54 94 37

Daily Wrap: PHILIPPINE M ARKET

SECTOR INDEX Pts Change % CHANGE
BACKDROP. ALL 3,011.60 -16.54 -0.55%
FINANCIAL 912.01 -3.14 -0.34%
German sentiments soar; European markets end higher; US INDUSTRIAL 7,178.16 -17.40 -0.24%
returns from holiday, up at mid-session; ends in positive;. HOLDING FIRM S 3,220.10 -49.19 -1.50%
Europe turned early negative suggestions from the futures index PROPERTY 1,523.94 -25.90 -1.67%
around, as all three major markets – Paris, London and Frankfurt – SERV ICES 1,571.08 2.94 0.19%
gained at least 0.90%. The reported surge in Germany's ZEW M INING & OIL 14,363.27 -196.93 -1.35%
Economic Sentiment to 15.4 beat analysts' forecast by more than As of 1245H 19. Jan. 2011

double. The series represents the combined outlook of institutional ASIAN M ARKETS
investors and analysts in the leading Eurozone economy. It has COUNTRY INDEX LAST % CHANGE
been on the rise since coming off negative readings in October. ASIAN REGION M SCI APEX 50 905.78 1.00%
Earlier, the finance chiefs of the continent, pledged support for the JAPAN TOPIX 934.50 0.31%
area's indebted countries. JAPAN NIKKEI 225 10,548.45 0.28%
CHINA HANGSENG 24,332.88 0.70%
Meanwhile, the US returned to action following a Martin Luther CHINA SHANGHAI 2,737.66 1.06%
King, Jr holiday posting as much as a 60 points upside at mid- TAIWAN TAIEX 9,050.61 0.70%
session. This despite the jitters presented by Apple, Inc. following SOUTH KOREA KOSPI 2,108.32 0.56%
founder and CEO Steve Job's leave for health reasons and AUSTRALIA S&P/ASX 200 4,835.10 0.69%
Citigroup, Inc missed earnings estimates. Apple, Inc nevertheless AUSTRALIA ALLORINDARIES 4,944.00 0.66%
reported a 70% increase in profits as demand for its iPhone and NEW ZEALAND NZ50 3,347.33 0.11%
iPad surged. The Broader S&P 500, however, was marginally in PAKISTAN KARACHI 100 12,658.16 -0.19%
the red. The Dow sustained the rise, closing at 11,837.93, 55 SRI LANKA Sri Lank a Colom bo 7,058.33 0.72%
points higher, while the S&P managed to inch into positive territory THAILAND SET 1,029.44 0.48%
by 1.78 points or 0.14% to 1,295.02. The Nasdaq added 10.55 INDONESIA JKSE 3,541.54 -0.20%
points or 0.38% to 2,765.85. INDIA BSESN 19,077.81 -0.07%

Asia starts the day in the red but bourses closer to home, KLCI and SINGAPORE Str aits Tim e s 2,353.61 0.12%

STI are marginally down at the open. Toward the Philippine closing M ALAYSIA KLSE 1,565.71 -0.28%

time at noon, however, Singapore has rebounded with thin gains VIETNAM HO CHI M INH 505.91 1.70%

leaving the Philippines, Indonesia and Malaysia sustaining losses. BANGLADESH DSE Ge ne ral Inde x 7,140.25 -3.22%
M ONGOLIA M SE Top 20 16,370.50 2.22%
LOCAL DEVELOPMENTS: As of 1249H 19. Jan. 2011

The BSP has expressed confidence that 2010 GDP will exceed targets as well as those forecasted for 2011. The latter hinges upon
sustained growth in consumption and investments as the government unfolds its touted Private-Public Partnerships. Outlook for the
Philippine economy for this year is mixed. Conservative estimates peg the pace to slow to 5.0% while some projections are more optimistic
at 8.0%. Government sees between 7.0% and 8.0%, coming off a 5.0% target for 2010.
SNIPPETS
Macau earned $2.4 billion in revenue in December 2010, roughly half of Las Vegas' full-year take.and 57% higher year-on-year. It would be
interesting to see how much local gaming companies will be able to rake in once operations commence. Recently, ALGI, an LR subsidiary,
was contracted by PLAI of BEL, to manage and operate the casino component of an entertainment complex that will rise in Aseana Business
Park, a development by an SM Investments Corporation (pse: SM)-led consortium along the Manila Bay reclamation area.
MARKET'S REACTION:
THE market started on an uneven footing, inching higher by less than five points before sellers took the initiative pulling the index into
negative with hardly 10 minutes past the opening bell. The direction saw no change hitting a trough of -45.12 points entering the final hour.
This opened the doors for selective bargain hunting
Third-liners, the “darling” of the market over the last two- to three-weeks, fell under the weight of profit-taking as the market-talk on those
issues that pushed prices higher were formalized and confirmed. LND, which rose to as much as php2.35 in intraday trades Monday after
breaking above the php0.87 line a month back, fell -4.47% to php1.97%, extending losses to a 2 nd day. The Company and AGI finalized and
closed the deal providing for the latter's acquisition of a majority stake. CYBR which booked as much as a 146% year-to-date gain, retreated
for a second day, giving up -6.0% to php1.25. Nevertheless, two other “favorites”, BEL and LR, managed to hold investor interests, ignoring

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 REPORT TD013_2011_January 19_Wednesday
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
4,039.56 -33.03 -0.81% 1,849.31 5,521.78 54 94 37

technical suggestions of a pullback. A much awaited deal reached closing Friday last week and was formally disclosed to the investing public
via the Exhange website last Monday. Both counters are technically overripe for a correction as the upside volatility narrows.

PRELIMINARY OUTLOOK FOR THURSDAY, January 20, 2011

Even as the market retreated by a wide margin for a second straight session, raising questions on whether the bull run will be sustained
through 2011 or is already showing early signs of a terminal move, it has remained consistent with the position we have taken at the
beginning of the year – that the market will see some weakness at the start of the year, possibly through the first quarter.
Last year's experience was no different. The index fell nearly 8% through mid-February before climbing, consolidating and testing resistance
level as a prelude to the second semester's steep rise. At least to-date, the market appears to be treading a similar path as it grapples with
much the same questions, in a slightly different context. At the beginning of 2010, the focal concern was whether the Philippine economy
can manage to grow in a milieu where larger economies' recovery was still in question. This year, the same question remains, but the
context has change somewhat, from whether a recovery will ensue to whether the recovery can be sustained and grown at a faster pace
without imposing too much inflationary pressures. Of course, last year, Europe wasn't grappling with the debt-crisis it is facing today. That
concern surfaced only with Greece sometime April-May. Now, it is staring, not just the Eurozone, but the entire world. Furthermore, Chinese
inflation and its consequent monetary tightening were absent then.
The more than 100-points, two-session slide does introduce a certain level of concern, if not “fear”, as it may precipitate further aversion to
equities. It supplants talk of an oncoming “massive correction,” propounded by some. At the very least, this view should make investors
cautious. Nevertheless, even submitting to this position, we are not about to subscribe to a “terminal move” proposition. In our view, the
recent negative action in the market is an accurate reflection of increasing risk-aversion, as investors hold on for more clarity across both
China and Europe, referencing the concerns mentioned earlier. In the same manner that the Lehman crisis, the Dubai crisis and such other
crisis that hit the global financial system over the last two-years have dragged equity values substantially lower, its relative quick resolutions
have , in turn, laid the foundations for the biggest profit situations. We see the present situation as no less different. The main fulcrum of this
final argument is that the domestic fundamentals have remained steady and strong as recent government data shows.
A possible source of the momentary shift in sentiments are expectations that Q4 GDP may have come in slower and that Q1 2011 may be
challenged to at least match year ago performance. It may likewise reflect a bit of doubt on the published 2011 targets of between 7.0% and
8.0% as these would require better than last year's results, which has the advantage of an election spending season. While these are
substantially correct, the bigger picture shows full-year 2010 GDP having a high probability of surpassing what has turned out to be a very
conservative 5.0% target. As for a slower Q1, the premise has been laid out in that last year's 7.8% performance was helped largely by the
election campaign. At the very least, there appears no danger that
the country's growth will retract. It boils down to a question of what
the pace of such growth will be. The same may be said for
individual corporate earnings.
Some encouraging signs are seen off the technical charts that posit
a possible rebound in the last two sessions of the week. For one,
the late hour surge erased one-fourth of the day's losses, and
roughly 10% of the two-day aggregate. The significance of this
action is magnified by the fact that it rebounded off a brief breach of
the 4,030 support line. Furthermore, it contained the measure
within a 2.5-month trading band, in line the market's continuing
consolidation moves. STO (10,6) bounces off a low and draws a
potential upside penetration of the trigger line, even as the slope
shows a gradual incline. Thus even as momentum indicates
sustained negative pressure may lead to an early test of the 4,000-
psychological level, we expect bargain hunters to prowl the line
and lay the base for a technical rebound.
Thursday's trades may usher in another shift from an aggressive
sell-off to more balance as funds search for bargains created by
the slide. Index issues, blue chip counters and top-line second
liners may be the immediate targets.

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