ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REVIEW & OUTLOOK, for TD October 8, 2010 Friday
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4245.05 48.26 1.15% 1.260B Php5.011B 54 70 56

DAILY WRAP of October 7, 2010_Thursday

IN YET ANOTHER DEFIANT mood, the PSE Index closed at a new

high, a ninth resetting of the level since it broke the 2007 peak last
September 9th. Asian markets were generally down as the
Philippines closed shop for the day.

The PSE Index ended the session at 4,245.05, 48.26 points higher.
All subindices gained, with only the Mining and Oil sector slipping a
little over a third of a percent.

In what could be a sign of hesitation, if not outright weakness at the

top, decliners edged advancers and volume/value turnover thinned
for a second session, even as the index rose. Unchanged issues on
the other hand rose to 56, a sign that the number of “fence-sitters”
is growing.

OUTLOOK for October 8, 2010_Friday

ENTERING a weekend, investors have generally opted to stay liquid

making Friday trades weaker than the rest of the weak. The reasons
for which, particularly on extended weekends, are the risks presented
by unknown events that may unfold, giving the market no time to
react.

Around this time, however, with the bulls firmly in control and the
broad economic prospect looking brighter each day, despite
temporary setbacks marked by lower-than-anticipated results, the
“weekend risks” have been minimized – at least in these parts. In fact,
as Thursday's action showed, the local market has been moving in
large part, “according to its own will.”

Thus, we expect to see some investors book profits if and when the
market surges at or near the opening, but over-all, buyers on the prowl will lend support and provide the necessary balance to the sellers to
keep the index trend valid.

Immediate support is at the psychological 4,200-line although we see little probability this will be broken Friday, unless something
drastically negative surfaces in the Western markets tonight. Thus far however, judging by the way futures indexes are moving, Europe is
bound to extend yesterday's rise while US markets shows an almost flat direction, albeit thinly in the negative. Given the above
considerations, including an anticipated no change in policy rates this afternoon, we set the interim resistance at the 4,255-mark.

CORPORATE NEWS & DEVELOPMENTS:

SM INVESTMENTS CORPORATION [pse: SM, php535.00, -1.13%]
In connection with its earlier disclosed Offer to Exchange US$75.736M worth of 6.5% 2013 and US$120.844M worth 6.0% 2014 bonds,
representing 21.64% and 24.17% of the original issuances, respectively, for a single issue of 2017 Bonds with a 5.5% coupon, the
Company reported that an aggregate of US$196.6M [2013] and US$500M [2014] were accepted, exceeding the earlier mentioned

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 REVIEW & OUTLOOK, for TD October 8, 2010 Friday
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4245.05 48.26 1.15% 1.260B Php5.011B 54 70 56

numbers. Additional similarly termed 2017 bonds will be offered in a new money component of about US$186.3M, allocated
accordingly into 27% onshore, 64% Asian and 9% European investors.

SM's share price has dropped off its php570 peak hit about a week ago. The uptrend from the php370 low (May 26, 2010) has been
interrupted an there are yet no clear signs of either its restoration or reversal. It appears to be drawing a developing sideways, neutral bias
with today's marginal 1.13% rise to php535, snapping a two-day slide. Raising our concern is the fact that it has broken below all measured
EMA's (10-, 50-, and 150-periods) strengthened by volumes strong distribution bias. Immediate support at php530 with the major found at
the php495-505 range. The technicals indeed define a possible sideways movement with a negative bias. The underlying fundamentals, in
light of the above development, should however, further improve an already strong balance sheet which may make the counter an “asset
play.” LONG-TERM BUY

INTEGRATED MICRO-ELECTRONICS, INC [pse: IMI, php10.60, -1.85%]

The Company completed its acquisition of 56% of PSi Technologies, Inc. an independent semiconductor assembly and test services
(SATS) provider. A member of the Ayala Group of Companies, IMI is an electronics manufacturing service provider. The acquisition of a
majority stake in PSi gives the Company a “foothold in the growing convergence of power SATS and electronic manufacturing services
(EMS.)

IMI is one of the firms that listed in the Exchange by way of introduction. While it saw its share price skyrocket to as much as php68 in four
successive sessions of hitting the ceiling from its opening day evel of php9.30, it now trading at gains of 13.97% since listing. It has been
consolidating at the php10-12 range since July, recently hitting a high of php12.10. Price and indicator charts are erratic and does not lend
reliable signals at this point. Since aforementioned development may position the Company well to take advantage of a resurgence in
demands for electronic products, we must monitor the demand schedule in that particular sector to make a viable and reasonable
assessment of the impact of this acquisition on its fundamental valuations. NEUTRAL

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