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 _for December 3, 2010_Preliminary Outlook for Week 49
PSE Index 4,176.48 Pts Change 27.58 % Change 0.66% Total Volume 696.89M Total Value Php5.505 B Advancers 66 Decliners 50 Unchanged 58

Daily Wrap::

PHILIPPINE shares kept its winning run intact, rising 27.58-pts in Friday's trades to close the holiday-shortened week with a 3.03% gain at 4,176.48, reversing a hefty -3.6% slide in the week prior. Mining and Oil shares moved separately from the rest of the market as it gave up 0.64%. Interest-rate senstive Financial and Property sectors led the advance with gains of 1.77% and 1.62%, respectively. Sixty-six counters advanced while 50 declined and 58 were unchanged. Value turnover reached php5.505 billion with a little less than 700 million shares changing hands. Articulating these two figures reveal heavy concentration on higher priced counters, which are principally first and second liners. This indicates relative risk-aversion as well as positioning in companies seen to benefit over an anticipated pick up in consumer demand in the final month of the year. The almost-too-sudden turn in sentiments drew inspiration mainly from the Dow's strong performance. The concerns that dragged sentiments have been partly addressed, easing investors' fears that the bull run may be close to the finish line. At the very least, that issue remains open and debatable. Last night, the main US measure added 106.63 points, +0.95% to 11,362.41 with confidence spurred by a 10% increase in pending home sales, an historic high. Wednesday's +249 points marked only the 7th time the measure booked gains of over 200 points this year. Last night's advance puts the Dow 2.44% or 270.41 points up on the week and keeps it above the 11,000 line since it broke through last October 11.
Analysis & Outlook

The market has managed to pull through the gauntlet of the preceding week with flying colors. We have, over the last couple of weeks, seen extreme volatily in global markets, resulting to wild swings as each event unfolded. The Philippines, with very little to go by on the domestic end, took its cue from overseas. Thus when Ireland's problems began to fill business headlines, investors took it as the backdrop to aggressively book profits, or cut positions taken in anticipation of a break through the 4,400 mark. This activity fed on itself, and with the index breezing past successive support levels, even technicians made short-term sell calls, pulling the measure even lower. The problems that threatened to pull the bull back into its cage are still present. Investors' perception of their impact have been diminished. The bailout package for Ireland was met with mixed reactions, with markets initially ignoring it, opting to factor in the possibility of Spain, Portugal and other peripheral Eurozone economies falling into the same trap. It took a statement from ECB President Jean Claude Trichet to ease such concerns. By the end of the week, confidence had crept back into equities. Recent US economic data contributed as well. This weekend is less tense than the prior one, making investors more confident in taking positions. However, we saw how the attempt to break through the 4,200 mark was met with a stiff challenge. To a certain extent, this was within our expectations. We will be closely watching the Western markets tonight and for more developments over the weekend. Ceteris paribus, however, we can fairly expect the market to make a break of the 4,200 mark towards the middle of the week. Profit-taking will be a contant presence as investors balance their investments' profit margin and liquidity requirements over the Christmas season.

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