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_November 9, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,295.62 -53.49 -1.23% 1.295B Php4.505B 61 77 49

OUTLOOK:

THE market will try to find reason to recover from a disappointing start
yesterday with a more serious look at firm fundamentals. The index sustained
sharp losses of -53.49 points or -1.23% to pull the measure under the 4,300-line.
It was downhill all the way after a brief 30-point surge off the opening bell.

At least five listed firms are scheduled to hold anlaysts' and/or press briefings
on their q3 performances beginning tomorrow until Friday. Ayala Land, Inc
[ALI] and Manila Water Corporation [MWC] take center stage tomorrow,
followed by Metro Pacific Investments Corporation [MPI] and Vista Land &
Lifescapes, Inc [VLL] on Wednesday. Friday will be heavy, kicked off by ABS-
CBN Corporation (ABS) in the morning and Filinvest Lands, Inc (FLI) and San
Miguel Corporation (SMC) combined with GSMI and SMB in the afternoon.

Investors may have become worried over Q3 results following PLDT's rather
tepid 7% year-on-year growth in its bottomline and, worse, Globe's 24% drop
over the same comparative period. And judging by the way prices have moved
in the quarter-to-date, the anticipation may have been tempered.

ALI, SMB and GSMI all register quarter-to-date slides despite the average's
+4.77% climb over the same period. Other than SMC (+35.3%) and MPI
(+11.7%), the rest of the above-mentioned reporting companies' stocks have
risen by no more than VLL's 8.1%. The market waits to be surprised.

Two firms that released their earnings figures yesterday posted bigger year-on-
year numbers. Higher sales volumes over the first nine months of the year
pulled Chemrez Technologies Inc [pse: COAT] revenues to php4.5B from
php3.6B a year-ago. EPS for the period marginally rose to php0.29 from
php0.28 last year. On the other hand, Rizal Commercial Banking Corporation
[pse: RCB] reported a 30% increase in in January to Septmber net income to
php3.66 billion.

The real “dilemma”, if we can call it that, among investors at present is what to
do with the profits? Over the last 52-weeks, the market, as measured by the
PSE Index has gained on average, 43.07%. The broader All Share Index
performs just slightly better at 44.06%. In the universe of component stocks
alone, five (5) of the 32 issues [prior to yesterday's effected changes) have
registered twice the PSEI's return. An additional nine (9) have advanced by a
multiple of 1.5x the Main Index'. Over-all, 18 have climbed at a pace at least
equal to the market's average. Assuming for simplicity such returns in excess of
the market's will continue at the same pace, with the index at 4.77% on the
quarter-to-date, we have at least 18 leading, heavily capitalized and (assumed)
traded stocks with a period return of between 7.2% and 9.5%. These are all
prime candidates for profit-taking and thus presents a latent selling pressure
that hovers over the market.

Yesterday's break under the 4,300-line restores the importance of the 4,230 –
4,250 support (minimal, interim level at 4,270.) Unless there are further
disappointments on the earnings front, we expect this support line to hold and
serve as he jump off point for a mid-month to December resurgence.

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.
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