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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_ TD028-29_February 9-10, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,843.37 -35.11 -0.91% 1,295.53 5,991.14 38 91 41

Daily Wrap PHILIPPINE MARKET, DAILY STATS


SECTOR INDEX Pts Change % CHANGE
THE PSE index met strong resistance in its early push ALL 3,058.94 -12.82 -0.42%
towards the 3,900-line, falling into the hands of the FINANCIAL 859.08 -16.31 -1.86%
bears less than half-an-hour into the session. It was INDUSTRIAL 6,800.24 -19.47 -0.29%
practically downhill from then, as the measure closed at HOLDING FIRMS 3,090.01 -12.59 -0.41%
its intra-day low of 3,843.37, -35.11 points or -0.9% PROPERTY 1,446.55 -31.12 -2.11%
down from Tuesday. SERVICES 1,515.48 -4.16 -0.27%
MINING & OIL 13,943.87 -13.35 -0.10%
Prior to the opening bell, investors were presented with As of 1210H End of Day
two major, contrasting cues that could have propelled ASIAN MARKETS LATEST UPDATE
the market either way. COUNTRY INDEX LAST % CHANGE
ASIAN REGION MSCI APEX 50 872.23 -1.64%
JAPAN TOPIX 944.02 0.00%
On one hand, was the news that came out late yesterday
JAPAN NIKKEI 225 10,617.83 -0.17%
that China raised its benchmark lending and deposit
CHINA HANGSENG 23,164.03 -1.36%
rates by 25 basis points, the third time it has done so
CHINA SHANGHAI 2,774.06 -0.89%
in the last five months. This came ahead of forecasts TAIWAN TAIEX 9,006.82 -1.15%
inflation accelerated at a 30-month pace. The one-year SOUTH KOREA KOSPI 2,045.58 -1.17%
lending rate was pushed to 6.06% from 5.81% while the AUSTRALIA S&P/ASX 200 4,904.80 0.29%
deposit rate is similarly adjusted 25 basis points AUSTRALIA ALLORINDARIES 4,995.10 0.24%
higher to 3.0%. Other Asian economies who have began to NEW ZEALAND NZ50 3,386.48 0.10%
tighten monetary policy by boosting rates are India, PAKISTAN KARACHI 100 12,299.28 -0.50%
Indonesia, Thailand and South Korea. SRI LANKA Sri Lanka Colombo 7,377.44 -0.10%
THAILAND SET 969.89 -1.39%
On the other hand, the US Dow rallied for a seventh INDONESIA JKSE 3,417.47 -1.23%
consecutive session, stringing up 409.45 points or 3.5% INDIA BSESN 17,592.77 -1.03%
closing 233.15 points above the 12,000-mark. A spate of SINGAPORE Straits Times 3,150.56 -1.09%
positive economic situation numbers over the last two MALAYSIA KLSE 1,536.07 -0.23%
weeks have given fodder to the conviction that the VIETNAM HO CHI MINH 522.59 0.36%
recovery of the world's largest economy has stepped up BANGLADESH DSE General Index 6,673.41 -2.19%
momentum. MONGOLIA MSE Top 20 25,509.40 0.35%
LAOS Laos Composite 1,477.46 -3.82%
It was clear from the day's results what the market gave As of 1229H 2/10/11
more weight to.

The domestic economy remains stable, with a review of the macroeconomic targets set for Friday. Inflation is
still within official target range, although there are heightened concerns of increased upward pressure resulting
from a series of increases in oil and gas prices and transport-related fees.

The political front, however is beginning to brew as more and more “secrets” are uncovered during Congressional
investigations of the Garcia plea-bargain and the AFP's “pabaon” and “pasalubong” system. This took a drastic
turn with the alleged suicide of Secretary Angelo Reyes coinciding with the first birthday of President Aquino in
office. Nevertheless, the President's ratings has thus far remained “unaffected” despite the many “crisis” that
visited his young administration has been through.

Markets across the Asian continent were all in the red, owing the the growing “China crisis.” Stepped up
inflation will force the hands of the PBOC to further restrict money flow and credit, adding to fears demand from
the economy that has been the biggest buyer over the recession period, may slow. Commodity prices fell. China
likewise has been the major destination of mined ore and resources as it feeds the demands of a rapidly expanding
economy. The Chinese economy grew 10.1% last year.

The sell-off was evident across all sectors, which turned out losses for the day. The broader All Share Index
gave up half of the Main Index' losses, percentage-wise pointing to the heavy concentration of liquidation among
index-components. Between 2 and 3 stocks fell for each one that gained. Further highlighting the resurgence of

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 4, just sl
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_ TD028-29_February 9-10, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,843.37 -35.11 -0.91% 1,295.53 5,991.14 38 91 41

a pessimistic mood, value turnover exceeded the year-to-date daily average, reaching php5.991 billion.

OUTLOOK FOR THURSDAY,_February 10, 2011

WE have in previous reports, drawn a parallel between the weak starts this year and last. To reiterate the
point, last year, 2010, the market started off with the bear's pawing, which we saw as a normal reaction to a
record 63% gains in 2009. It was reasonable for investors to secure their profits as the uncertainties of the
then new year rolled in. These uncertainties came from both the political and economic fronts. On the political
spectrum, the country was then gearing up for a presidential election and at least until the actual exercise in
May, there were doubts if the polling will take place at all. There were other consequential “indeterminables”
not uncommon in Philippine political exercises. From the economic side, there were questions of whether the
extreme bullishness of the market was reasonable, particularly as the full year GDP for 2009 barely registered
growth. There were, understandably, concerns the economy may not be strong enough to continually resist the hard
pull of the then gnawing global recession. Of course, 2010 put all those doubts to rest as early as the first
quarter. Needless to say, the proof did not come easy as there were intermittent challenges to the global
recovery.

For this year, we had propositioned at the outset that the market may start off weak. Again, the usual
uncertainties over a new year and the deflation of the excesses of the closing (window-dressing) trades of the
prior year were principal factors. The major concerns
entering 2011 were the ability of the over-all economy ADL 2011
to sustain an above 7.0% GDP growth, absent a 150
consumption and spending-heavy election element in the 100
equation. In addition thereto, Europe was continuing to 50
0
struggle to keep its Union, and the euro, viable n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
1-Ja
3-Ja
5-Ja
7-Ja
9-Ja
1-Ja
3-Ja
5-Ja
7-Ja
9-Ja
1-Ja
b
b
b
b
-Ja
-Ja
-Ja
-Ja

e
e
e
e
-F
-F
-F
-F
-50
3
5
7
9

2
4
6
8
1
1
1
1
2
2
2
2
2
3
following the failures of Greece and Ireland. And of -100

course, China's inflation. -150


-200
-250
Having said thus, we find the over-all “similarities” -300
-350
still present. However, examining the underlying -400
numbers accompanying the index' slide, -8.5% 2011 year-
to-date vs. -6.4% year ago, the present picture looks ADL 2010
even worse. 100

0
n
n
n
n
n
n
n
n
n
n
n
n
n
n
0-Ja
2-Ja
4-Ja
6-Ja
8-Ja
0-Ja
2-Ja
4-Ja
6-Ja
8-Ja
0-Ja
b
b
b
b
b
-Ja
-Ja
-Ja

e
e
e
e
e
-F
-F
-F
-F
-F
First, the ADL draws a generally similar trend for both
4
6
8

1
3
5
7
9
-100
1
1
1
1
1
2
2
2
2
years as seen the twin charts to the right. The 2011 -200
3
trend looks better but only in the sense that there is -300

more “hesitation” evidenced by trend “interruptions” -400

momentarily moving sideways, indicative of investors -500

waiting for more cues. In contrast the 2010 line has -600

more conviction in its southern heading. At least from -700

this perspective, the division between bears and bulls 2.50


this year is relatively more pronounced that the same
2.00
B
ilo
n

period last year. Nevertheless, the heavier negative


s

bias shifts to 2011 when we consider the base figures: 1.50


Market breath is much wider this year, at 77% versus 1.00
only 65% (as of Feb 10, 2010, first 28 trading
0.50
sessions.) This means that there is more price movement
(changes up or down) this year than there were last -
year. This information is magnified further when we (0.50)
consider that the average number of stocks traded daily
n
n
n
n
n
n
n
n
n
n
n
n
n
n
n
1-Ja
3-Ja
5-Ja
7-Ja
9-Ja
1-Ja
3-Ja
5-Ja
7-Ja
9-Ja
1-Ja
3-Ja
5-Ja
7-Ja
9-Ja

b
b
b
b
e
e
e
e
2-F
4-F
6-F
8-F

increased to 170 from 164 over the comparative periods.


1
1
1
1
2
2
2
2
2
3

More stocks traded, with more stocks seeing a change in


DAILY AVG BUY DAILY AVG SELL DAILY NET AVERAGE
price and most of these changes are in a downward

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 4, just sl
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_ TD028-29_February 9-10, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,843.37 -35.11 -0.91% 1,295.53 5,991.14 38 91 41

direction. The bears are, so far, winning the battle.

Second, the widely-tracked and influential flow of foreign funds (bottom chart, above) is clearly not
encouraging, to-date. As of Wednesday's trades, foreigners have accumulated a net sell value of php6.602
billion, a complete reversal of their net buying position of php3.425 billion a year-ago. February alone has
accounted for php2.436 billion or nearly one-third of the year-to-date total, with still two weeks in the
balance. This serves as another “depressant” for a larger segment of the “retail” market.

Average daily volume and value-turnover for the same year-on-year comparison (first 28 sessions) have doubled
from 1.376 billion to 2.867 billion and from php2.628 billion to php4.615 billion, respectively. This supports
the earlier observation we made with the ADL, the increased activity, volume and value are negatively biased.

The slight promising ray we found on the charts just yesterday faded back with the lines failing to sustain what
was seemingly developing shift to positive. Nevertheless, it proffers yet another potential positive – index
forms a “falling wedge” (drawn as the main downtrend from November, with the reaction highs defined by the dotted
-line) – a theoretically bullish reversal pattern. Yet, forming only over the last three to four weeks, the
pattern is “weak” and may be prone to false signals. Viewed another way, the bigger “falling wedge” with the
reaction highs defined by the heavy line above, suggests that the situation may still get worse before it makes a
turn with the timing defined as three- to six-months down the line. On this basis, the near term action remains
negative, as we wait for another low that should fall below 3,830. We thus place the major support at 3,730 with
a possible trading band extending to 3,620. The recent actions of the other three indicators are annotated in
their respective charts.

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 3 of 4, just sl
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_ TD028-29_February 9-10, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,843.37 -35.11 -0.91% 1,295.53 5,991.14 38 91 41

DISCLOSURES HIGHLIGHTS:

IMPORTANT NEWS: ORDER TO DELIST


As contained in Memorandum Circular Nos. 2011-0051 through 0055, the Board of Directors of the PSE, citing the
continued violation of Section 17.8 of the Revised Disclosure Rules on the submission of structured reports, has
issued an Order to Delist the shares of the following companies effective March 10, 2011:
• Banco Filipino Savings and Mortgage Bank (pse: BF)
• Wise Holdings, Inc [pse: WHI, WHIB]
• Universal Rightfield Property Holdings, Inc [pse: UP]
• Sanitary Wares Manufacturing Corporation [pse: SWM]
• Mondragon International Philippines, Inc. [pse: MON]

MRC ALLIED, INC. [pse: MRC]


Disc. No. 2011-1115
FUND RAISING FOR MINING PROJECTS, TAMPAKAN
As the Company clarified news reports, it revealed and reiterated previously disclosed plans to acquire multiple
mines this year consistent with its objective of becoming a major player in the industry. These project,
acquired or to be acquired, may or will be funded from and by two possible options, one not to the exclusion of
the other. First, a PRIVATE PLACEMENT, seen to be launched in Q1 this year to raise about php1.5 bilion. The
second is an Initial Public Offering (IPO) of its Tampakan subsidiary towards the latter part of the year.

PREMIERE ENTERTAINMENT PHILIPPINES, INC. [pse: PEP]


Disc. No. 2011-1170
QUASI-REORGANIZATION, CHANGE IN PAR VALUE & AUTHORIZED CAPITAL STOCK; TRADING HALT
The Company will present to its shareholders during the Annual Meeting (postponed to March 11, 2011) its new
additional business direction of engaging in “non-gaming business, such as but not limited to, mining, real
estate, information technology and other like businesses.” Furthermore, an initial decrease in its authorized
capital stock to not less than php500 million from php1.8 billion via a reduction of the par value to php0.20 –
0.30 and a subsequent increase in such authorized capital stock to up to php2.5 billion and increase in the par
value to php1.oo. The reduction in the par value will not change the number of shares held by investors as it is
intended to create a capital surplus that will be applied to partially erase its deficit effect an increase in
shareholder value. Pursuant to this, trading in PEP shares will be halted for one hour from 9.00am to 10.00am.

SAN MIGUEL PUREFOODS COMPANY, INC [pse: PF]


Memorandum No. 2011-0056
NOTIFICATION OF DIVIDEND RATE ON PREFERRED SHARES OFFERING
The dividend rate for its Preferred Shares, at an Offer Price of php1,000.00 each, was set at 8.0% per annum.
This is based on the 5-year PDST-F rate of 5.7788% per annum plus a spread of 2.2212%. The dividend rate is
applicable up to the fifth (5th) anniversary from Issue Date of the Preferred Shares.

** www.pse.com.ph , February 9, 2011

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 4 of 4, just sl