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062811 PHILSTOCKS 3.0 POWER & TELECOM SECTOR NEWS [x] FIRST DRAFT [] REVISION#5

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Asian markets are feeling some relief due to the recent events from Greece. Market confidence is being felt after the Greek Parliament announced that it will be implementing austerity measures in order to curb excessive government spending and to prepare itself for its maturing debts due this August. As a result, major Asian stock indices have risen, with Seouls KOSPI climbing up 1.31%. The PSE index also ended today in a positive note today, going up 0.7% from yesterdays value to end at 4289.99. Despite the upgrade of Standard and Poors ratings for the Philippines and a push from S&P to increase revenue generation efforts, President Aquino announced that it will not be immediately implementing new tax measures. However, the President has stated his push for more efficient collection efforts of existing taxes. The ratings upgrade has also borne fruit with foreign companies from Australia, Italy and China signifying their intention to invest in the Philippines Liquefied Natural Gas (LNG) sector. A coal-fired plant operated by Korean Electric Power Corporation (KEPCO) in Cebu City has also been recently inaugurated by the President, signifying a renewed foreign interest in the Philippines growing energy sector. A renewed interest can spell profits and eventual increases in the energy sectors stock prices. Despite the contestations of different groups on the effects of coal power on the environment, President Aquino has cited its long-term benefits for Cebu City, as well as KEPCOs compliance with environmental standards here in the Philippines. Medium-term investments in the energy sector could prove beneficial and profitable within the coming years as a growing population and a growing investment base from foreign investors will require a more solid energy grid in the Philippines. While cleaner, more energy-efficient alternatives are being sought by the Philippines to replace its current sources of electricity, cheaper methods of energy production would suffice to cover the energy needs of the country. In another note, the PCGG is currently asking the Supreme Court to reconsider its position and order San Miguel Corporation to return more than P 16 Billion shares

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062811 PHILSTOCKS 3.0 POWER & TELECOM SECTOR NEWS [x] FIRST DRAFT [] REVISION#5

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that were converted from common to Treasury shares. On a side note, the shares cited are different from the highly contested shares of SMC leader Danding Cojuangco. As a result, stock prices have ended up with quite mediocre 0.20% movement upward, closing at 113.90 despite repeated legal battles over the legality of Cojuangcos claim on the contested SMC stocks. The services sector ended up on a positive note, to end at 1552.59, a 4.34% improvement from yesterdays index value. Specifically, in the telecommunications industry, PLDT is still maintaining an upward push in stock prices, keeping its momentum despite the delay of its acquisition of Digital Telecommunications. Digitels stock prices, however, have continued its slow dip downward. Globe Telecommunications, PLDTs chief competitor in mobile telecommunications, also saw a rise in its stock prices, due in part to the favorable delay of the above trade.