ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)

Outlook for Week 7_February 14 to 18, 2011_TD 031 to 035
1 of 3 OUTLOOK: ON THE SURFACE, the market's condition appears to have detriorated from its end-2010 position. The Main PSE Index is down -10.8% as February-to-date's -3.4% performance adds to the -7.6% drop in the first month. All sub-indexes are likewise in the red ranging from Mining & Oil's -3.0%, the least and Financial's and Property's -14.0% and -12.0%, respectively. Holding Firms, Industrials and Services groups fell -9.7%, -8.3% and -7.1%, year-to-date.

MEASURE PSE Index DAILY AVERAGES > Volume > Value > Net Foreign ADL Level

End-2010 January '11 February '11 YTD 2011 4,201.14 3,881.47 3,749.15 -10.80% 1.638 B 2.776 B 2.483 B 2.771 B P 3.981 B P 4.888 B P 3.724 B P 4.663 B P 187.1 M P (198.4 M) P (384.9 M) P (267.1 M) -508 -249 -229 -478

Y-o-Y 27.10% 101.00% 76.00% -

Having said those, however, the actual conditions are not as bad as it appears, or maybe even feel, to participants. The PSEI is up 27.1% compared to the same period last year, although this is a function of coming off a high-base. Daily averages, as shown in the above table, have improved substantially. Daily volume turnover has doubled from the same 30-day period in 2010, indicating a much more brisk trading pace. Value turnover, on the other hand, expanded three-fourths of last year's same period total. And, more importantly, even as February has added to January's losses, turnovers have significantly slowed by -10.6% and -23.8% in February volume and value averages, respectively. ADL, is in a better level, despite the index having slipped. The biggest cause for concern has been the direction of foreign funds. To-date, the average outflow (net selling) per day reaches php267.1M, with the February pace pulling at net negative php384.9M. This is more a reflection of the improving fundamentals in the developing economies showing up in vastly improved equity valuations rather than a judgment on the prospects of the Philippine's growth moving forward. Foreign transaction value accounts for over 75% of the market's gross value turnover. While Friday's 10-point advance was a rather welcome breather from a -140.17 points two-session slide, it hardly impacts a turn-around in the technical charts to merit a call for an aggressive accumulation. Of course, the news about President Hosni Mubarak's resignation removes the biggest drag over the recent weeks and restores optimism in global markets. This may lead investors to make bets on a strong start this week. Nevertheless, we take cognizance of where the market stood as of Friday when the good news in Egypt was not yet known. The PSE Index managed to keep above our anticipated pull-back range of 3,620 to 3,730, although it briefly fell briefly and marginally to 3,728.20 in intra-day trades Thursday. It remains under the 10-pd, 50-pd and 150-pd EMA at and representing successive upside target levels of 3,788, 4,009 and 3,886, respectively. The last is the critical reversal and break-out point. Across all time-frames – daily, weekly and monthly – the prognosis are not encouraging. All point to a negative bias. Near-term resistance is at 3,830 with main support at the 3,620-line, a point crossed over last September 2010. Monthly STO fell under the 80-overbought line, widening its negative gap from the trigger point to roughly 12-indicator points. The same relationship with the trigger line is picture in the weekly chart, although it is close to breaking under the oversold-20 mark at 23.07. The daily has been treading marginally above and under the 20-line since the final week of January. Its position vis-a-vis the trigger line mirrors the monthly and weekly drawings. MACD is negative in both daily and weekly charts. Yet even as it hover above the zero-line in the chart to the left, the trends are not encouraging. The narrowing of the MACD spreads (succeeding shorter histograms) indicates how the slump in the first month and a half has squeezed long-term positive momentum, even suggesting a possible oncoming downside penetration of the signal line. On hindsight, a slight bearish signal, warning of the weakness in the first two months which we spotted in our 2011 outlook, is shown in the chart comparing the MACD line's levels relative to two positions of the PSEI. The former is at a higher reading of 425.64 at the end of October when the index closed at 3,758.97 than when it closed the
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 CREDITWORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.

ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)

Outlook for Week 7_February 14 to 18, 2011_TD 031 to 035
2 of 3 year at a higher 4,201.14 index with an MACD level of 378.82. A slightly developing positive sign shows up in the Money Flow Index (MFI) daily chart. Specifically, as the index fell -3.2% last week from 3,872.35 to 3,749.15, MFI value rose from 37.27 to 42.51, indicating relative increase in upside money versus towards the opposite direction. This “creeping” accumulation is mostly ignored as the market pays heed to the overriding sentiment-driven action, particularly the pessimism last week. This is supplanted by the lower average daily value turnover in February, even as it adds to the -7.3% index decline registered in January. As the above-table show, February-to-date average has dropped to php3.724 billion, from January's php4.888 billion, both netting out block sale values. It thus seems from a technical standpoint that there remains room for the market to move further down. We keep our downside range to an extreme level of 3,620. Having said that, however, news about the resolution of the Egyptian-crisis with the resignation of Mubarak removes the edgy issue that has disturbed the global economies' return to normalcy. We can thus expect a strong opening this week and coupled with the onset of the earnings season, the probability of a near-term push increases. The index may attempt to restore the market above the 3,830-line with initial support at 3,730. We have not discounted a possible pull-back to the 3,620-3,700 range over the medium-term. CORPORATE NEWS: AYALA LAND, INC. [pse: ALI] HOLD/ACCUMULATE Analysts' Briefing on FY 2010 Performance THE Ayala property unit registered a 35% increase in bottomline profits on the back of strong revenue growth and effective cost management. Full Year 2010 revenue reached php37.814 billion, 24% more than 2009 total with Real Estate sales expanding 27% to php35.641 billion. Quarterly earnings sustained its growth momentum for a 7th straight three-month period. Compound Quarterly Growth from Q1 2009 is at 8.0%. All business lines posted double-digits revenue growth led by a near-doubling in Services to php7.212 billion with construction contributing php6.177 billion from its php2.714 billion in 2009. For 2011, the Company will launch 70 new projects woth php82 billion, 13 projects and php20 billion more than the prior year's aggregate. Residential launches are seen to double to 20,258 units this year with total sales value increasing by 17% to php57 billion. ALI will continue to pursue suburban/provincial expansion and urban redevelopment with seven (7) new projects both inside and outside Metro Manila. In addition, it will also build 13 new office projects and three (3) “Kukun” hotels in Cagayan de Oro, Alabang and Quezon City. As of last Friday, ALI share price remains in a five-and-a-half month downtrend from its php18.70 peak last September 2010. And, despite a 1.4% rise to php14.00 Friday, both MACD (12,26,9) and STO (10,6,6) registers a bearish crossver of their respective signal and trigger lines. Volume movement, seen through the AccDist Line shows sustained distributive bias. Nevertheless, there is “volatility” in the Money Flow Index with the medium-term (2.5 months) showing a developing positive bias, a similar trend drawn by the OBV. The same general view is proferred across all indicators using weekly and monthly charts. Over the long term, the stock has fallen off its second peak, which fell short of the 2007 high of php19.25. Nevertheless, the php14.00 mark represents an interim support, with the major line at php10.75.
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 CREDITWORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.

ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)

Outlook for Week 7_February 14 to 18, 2011_TD 031 to 035
3 of 3 In a related disclosure, the Company revealed it has been awarded by the UP Board of Regents the 25-year lease contract for the development of a 7.4 hectare campus property located along Katipunan Avenue (the UPIS property). The lease may be renewed for another 25 years upon mutual consent of the parties. The area will be transformed into a mixed-use complex to be known as University Town, with emphasis on academic support facilities. It has an estimated project cost of php3.0 billion with completion seen by the first quarter of 2013.

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 CREDITWORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.