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 TD012_2011_January 18_Tuesday
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
4,072.59 -75.57 -1.82% 3,290.66 5,148.19 44 105 38

Daily Wrap: PHILIPPINE M ARKET

SECTOR INDEX Pts Change % CHANGE
BACKDROP. ALL 3,028.14 -61.70 -2.00%
FINANCIAL 915.15 -13.20 -1.42%
Europe debates revamp of bail-out facility; China deals with INDUSTRIAL 7,195.56 -224.43 -3.02%
inflation; President Hu Jintao, in the US, takes a hardline stance on HOLDING FIRM S 3,269.29 -84.78 -2.53%
yuan; US markets closed for Martin Luther King, Jr holiday. PROPERTY 1,549.84 -30.23 -1.91%
SERV ICES 1,568.14 -14.09 -0.89%
The developing story in Europe turned a new page as Finance
M INING & OIL 14,560.20 247.99 1.73%
Ministers of the troubled region sat down in Brussels to debate on a
As of 1207H 18. Jan. 2011
revamp of the European Financial Stability Facilty (ESFS), which
ASIAN M ARKETS
was put up in May 2010 to provide assistance to member-states in
COUNTRY INDEX LAST % CHANGE
economic difficulty. This was a response to the Greece debt-woes
ASIAN REGION M SCI APEX 50 901.27 0.48%
which spooked markets worldwide in April. In general, the ESFS
JAPAN TOPIX 934.32 0.60%
issues bonds or other debt instruments as a means to raise funds
JAPAN NIKKEI 225 10,542.40 0.28%
which it can then channel to assist troubled members. The bonds
CHINA HANGSENG 24,377.30 0.91%
are guaranteed by the euro-states in proportion to their paid-up
CHINA SHANGHAI 2,711.36 0.17%
capital of the ECB or the European Central Bank. The ESFS is
TAIWAN TAIEX 8,970.82 0.51%
worth about 750 billion euros or US$1 trillion and is proposed to be
SOUTH KOREA KOSPI 2,104.30 0.21%
expanded. Germany has dropped its opposition to this plan,
AUSTRALIA S&P/ASX 200 4,796.50 0.70%
removing one hurdle. A member of the ECB council has also
proposed allowing the ESFS to purchase bonds, taking such AUSTRALIA ALLORINDARIES 4,904.70 0.66%
NEW ZEALAND NZ50 3,342.48 -0.35%
burden away from the ECB so the latter can focus more on
controlling inflation. PAKISTAN KARACHI 100 12,681.90 1.18%
SRI LANKA Sri Lank a Colom bo 7,008.06 -0.35%
Portugal, currently on the spotlight as Greece and Ireland were in THAILAND SET 1,029.43 0.61%
the recent past, continues to insist it can get by without the aid. INDONESIA JKSE 3,518.32 -0.49%
This is something that Ireland once said, before it agreed to the INDIA BSESN 19,053.80 0.91%
ECB and IMF package. Its confidence was bolstered by the SINGAPORE Str aits Tim e s 3,245.40 0.21%
successful sale of 599 million euros in 10-year bonds Wednesday M ALAYSIA KLSE 1,568.90 -0.36%
last week, with costs even dropping nine (9) basis points to 6.72%. V IETNAM HO CHI M INH 498.81 0.74%
Even the extra yield against the benchmark German debts dropped BANGLADESH DSE Ge ne ral Inde x 7,377.58 -2.62%
50 basis points. M ONGOLIA M SE Top 20 16,015.40 -0.34%
As of 1202H 18. Jan. 2011
Inflation is increasing becoming a source of concern particularly as
it leads monetary officials towards a restrictive stance. Over the weekend, China raised bank reserve requirements anew by 50 basis points.
Last Christmas, it hiked interest rates on deposits and loans by a similar step. The world's second largest economy played, and continues to
play, an important part in global growth. It has provided a market for the goods of export economies, even the US, which saw its trade gap
narrow last December. The outlook for Chinese rates are biased upwards over the next six months.
Coal prices rose as supply was curbed the the flooding in Australia. Prices for power station and thermal coals jumped over 5% as the worst
flooding in 50 years pulls mine production to only 15% of capacity endangering deliveries. This may be an opportunity opening up for local
coal miners to share in filing up the resource's supply gap. Australia is the world's biggest supplier of steelmaking coal and ranks second to
Indonesia for power stations coal.
China, continuing its efforts to prevent a bubble, or pre-empt a bursting of such bubble, slashed its 2011 lending target by 10% off its 2010
levels, or somewhere between CNY7.2 to CNY7.5 trillion. Last year's loans totaled CNY7.95 trillion, exceeding that year's target of CNY7.5
trillion. Furthermore, the authorities “advised” banks to contain lending to no more than 12% of the full year loan target in January.
British Consumer Confidence rose more than forecast, returning to October 2010 levels. This data series peaked in March at 80, and has
generally trended lower since. This marks only the second time in the last 12 months that the actual figure exceeded forecasts. This
confidence should translate to increased consumer spending moving forward, one of the primary drivers of British economy. Headline
inflation for December, seen to hold at the prior month's 3.3% pace will be reported later in the afternoon, Manila. CPI has risen over the last
two months. Core inflation, however, may have slipped marginally to 2.6% from the previous month's 2.7%.
Meanwhile a measure of institutional investors and analysts in Germany is seen to further rise to 17.3 in January from December's 15.5%.

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 2
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 TD012_2011_January 18_Tuesday
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
4,072.59 -75.57 -1.82% 3,290.66 5,148.19 44 105 38

LOCAL DEVELOPMENTS:
OFW remittances grew 10.5% in November, second highest last year, missing September's pace by a hairline. This brings the 11-month
total to US$17 billion. The BSP had anticipated only 8%. With December figures still unaccounted for, the ytd level is just half-a-billion short
of full year 2009 aggregate. Our Gross International Reserves (GIR) expanded by 40% to a record US$62.1 billion last year.
Optimism across all economic classes remain high with four out of ten expecting the quality of life further improving over the next 12 months,
and SWS survey revealed. Only a small portion (8%) held a contrary opinion. Note however that the survey, conducted in end-November,
do not yet include the recent increases in toll fees and the pending increase in MRT/LRT fare costs among others. This optimism may have
been among the catalysts that pushed the stock market index higher by 6.3% in December last year.

MARKET'S REACTION:
Despite the generally neutral-to-positive backdrop, share prices fell, following a marginal 1.39 points advance off the opening bell. The PSE
Index fell by as much as 83.17 points before a late surge of buying pushed the index slightly off the low to 4,072.59. The All shares index lost
2.0%. Only the Mining and Oil sector gained, pushed by Philex Mining Corporation [pse: PX, php15.90, +3.65%]. Semirara Mining
Corporation [pse: SCC, php211.80, unch] likewise made it to the Top Ten Actives list. The rest of the issues in this roll slumped. Surprisingly
(or not) most of the Asia Pacific region's markets rose with only a couple of neighboring Southeast Asian bourses retreating.
Value turnover reached php5.148 billion on 3.291 billion shares changing hands. Both are within the year-to-date averages. More than two
issues fell for each one that advanced, keeping the ADL indicator on an uncertain heading. Only 38 issues were unchanged.
PRELIMINARY OUTLOOK FOR WEDNESDAY, January 19, 2011
The market cannot continue ignoring positive data pointing to continuing bullish prospects for the overall economy, in general and the stock
market in particular. While there is still no clarity as to what the direction and form the revamped “aid” facility, there is a growing confidence
that a fitting solution will be reached as Germany dropped its early opposition to its functional expansion. We remain optimistic on the
fundamental side even as we remain wary of how the Chinese monetary tightening impacts on the pace of growth.
Technically however, the near-term picture is clouded by a growing near-term pessimism. The index, after Tuesday's slide, fell under the
10pd and 50pdEMA even as it continues to manage
levels above the 4,000 mark. STO (10,3) has tapered
off following a two-day steep rise off its break above the
trigger line. MACD (12,26) remains under the signal
line and is negative. The spread however is thin,
indicating that pressures are not mounting either way.
Over-all, despite the 1.82% slide, the index stays inside
its trading band raising the possibility of an ensuing
technical rebound as it approaches the lower end of the
range defined as the 4,170-4,200 range.
Dampening sentiments are index futures in both the US
and Europe in the negative, except London's FTSE 100
showing up 26.5 points in the green. Trades will
continue to focus on second and third line counters as
investors wait for a more substantial correction in top-
line counters' prices. Absent fresher leads, either on
the broad economic or company-level fronts, the
market will tread a sideways movement. The
magnitude of the long-term advance puts a negative
bias over the near-term with profit-taking and range
trading the overriding stance.

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 2