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_ TD52-53_March 15-16, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged

3,896.31 -22.39 -0.57% n/a n/a n/a n/a n/a

End-of-day figures from the PSE website are still unavailable as of 1230H

TRADING HIGHLIGHTS PHILIPPINE MA RKET , DA ILY ST A T S

SECT OR INDEX Pt s Ch a n ge % CHA NGE
THE MARKET took back more than it gave through A LL n /a n /a n /a
mid-session, falling in line with a region-wide drop in
FINA NCIA L n /a n /a n /a
equities.
INDUST RIA L n /a n /a n /a
The PSE Index lost steam past the first hour giving up more HOLDING FIRMS n /a n /a n /a
than its 36.1 points gain to close the session lower by -22.39 PROPERT Y n /a n /a n /a
points at 3,896.31, almost matching the October 2007 intra-day SERV ICES n /a n /a n /a
high of 3,896.74. It failed to sustain levels inside the 3,950- MINING & OIL n /a n /a n /a
3,970 resistance range, with intra-day high capped at 3,954.80. A s of 1230H En d of Da y
Alternatively, it broke below the 3,900-line for the first time in A SIA N MA RKET S LA T EST UPDA T E
five days but managed to hold the 3,870-initial support. Intra- COUNT RY INDEX
day low touched 3,892.35. A SIA N REGION MSCI A PEX 50 829.56 -4.25%
JA PA N T OPIX 771.49 -8.91%
Entering the day, 17 of the Index components were already in
JA PA N NIKKEI 225 8,806.53 -8.46%
overbought territory based on their STO(14,3,3) levels. A good
number were approaching the same levels. The main measure CHINA HA NGSENG 22,509.00 -3.58%
itself registered a reading of 89.95, while RSI showed a drop to CHINA SHA NGHA I 2,874.63 -2.14%
56.15 from and interim top of 62.28. The index is definitely T A IWA N T A IEX 8,149.14 -4.35%
meeting strong technical resistance at the 3.930-3,950 range. SOUT H KOREA KOSPI 1,920.35 -2.58%
A UST RA LIA S&P/A SX 200 4,490.10 -2.95%
The two Japan market measures, Topix and Nikkei, have added A UST RA LIA A LLORINDA RIES 4,575.10 -2.87%
to yesterday's drop by 6.97% and -6.45%, respectively. This is NEW ZEA LA ND NZ50 3,335.12 -0.78%
understandable as the nation comes to grips with the T HA ILA ND SET 1,009.80 -1.28%
devastation wrought by the natural disaster and as they begin INDONESIA JKSE 3,505.35 -1.81%
to take the road to rebuilding. The Bank of Japan has taken the INDIA BSESN 18,024.20 -2.25%
tack of injecting liquidity to the financial markets in an effort to
SINGA PORE St ra it s T im es 2,951.21 -2.63%
stabilize investors' nerves even as it struggles to contain
possible leaks caused by explosions in its nuclear plants. Early MA LA YSIA KLSE 1,482.34 -0.87%
this morning, a third explosion was reported to have occurred. V IET NA M HO CHI MINH 468.27 -2.42%
www.bloom berg.com A s of 1202H 3/15/11
Concerns over the impact of the tsunami on the economy which
had earlier shown signs of recovery rattled markets. Last year, Japan gave up its rank as the second largest global economy to
China. Nevertheless, it remains a principal exporter of electronics and automotive to the various parts of the world. It is now
a question of how soon the Japanese economy can get back on its feet. Several observers and analysts have downplayed its
impact on the 2-yr-old “bull” run in equities.

Here at home, the major concern lies in how the events in North Africa, Libya (& the Middle East in general) and now Japan,
will add to the burden of sustaining growth. On top of the list is the possible displacement of Filipino expatriates and workers
whose remittances have helped keep the economy afloat, sending our Gross International Reserves to record highs. And
while they are not often talked about lately, China's inflation and the progress in the European debt crisis remain major
concerns moving forward. For certain, once the tsunami concern recedes, focus will once more shift to these problems,
keeping investors on their toes.

PRELIMINARY OUTLOOK FOR TD053_MARCH 16, 2011

The technical condition of the market had forewarned of today's slide. It has in fact done so since March 7 th when the
measure closed at 3,886.48. All else told, the market has already slipped -63.63 points or -1.61% off the recent peak at

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_ TD52-53_March 15-16, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged

3,896.31 -22.39 -0.57% n/a n/a n/a n/a n/a

End-of-day figures from the PSE website are still unavailable as of 1230H

3,959.94, a day before the tsunami hit northeast Japan. Even without this, and the still brewing crisis in the North African-
Middle East region, we were already on a cautious stance, based mostly on concerns over China's inflationary
environment and the continuing process of addressing the European debt problems. We become even more so with the
emergence of geopolitical risks, particularly as it impacts on, as it has already impacted, the price of oil. This will
inevitably set off a chain reaction to higher prices at the pump pushing inflation higher (as we have seen January at 3.5%
and February at 4.3%) and eventually, adding pressure for the BSP to look closely at policy rates. Prospects of an upward
adjustment looms large – although the requirements to sustain growth may limit such move to only 25 basis points. On the
other hand, raising rates prematurely, when demand has yet to gain momentum, leaving inflationary pressures on the
supply side, may prove counter-productive. This keeps the market on the edge.

The uncertainties moving forward are reflected on the questions bugging investors' collective minds: “How soon will Japan
get back on its feet and achieve a semblance of “normalcy?””; “Will the European Union and the European Central Bank's
facility for debt-riddled members be sufficient to sustain the viability of the region?”; “When will the tensions in the Middle
East ease?”; “Will Gaddafi remain steadfast on holding on at whatever cost?”; “Will world oil prices fall back to below the
US$100-per barrel levels?”; “Can China rein in inflation, without sacrificing growth?”; among others.

The bottom-line for equity investors is whether and how the answers to these questions will reflect on listed firms' Q1 2011
profit and liquidity numbers. True, what has been reported lately, and what will be reported in the coming days as the
earnings season unwinds, puts a positive spin to trades, particularly as portfolio investors bank on dividend declarations –
leaving short-term money with little room to maneuver. Yet, these numbers coming out in disclosures and briefings were
achieved in and under 2010 conditions. Admittedly, the bases of such achievements have changed.

This may well be a “hiccup” in the over-all picture, which though generally still positive, is now tinged with a host of
concerns. Still, this is consistent with your beginning-of-year stance of guarded optimism.

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