ACCORD CAPITAL EQUITIES CORPORATION

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

WEEKLY OUTLOOK_ XXVIII_July 11 to 15_TD 133-137

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TECHNICAL CONDITIONS:

AD R ATIO PSEI sustains optimism of prior week, adds 39.83 points FORMULA: ADV ANCERS- DECLINERS (0.9%) to 4,391.46. TOTAL ISSUES TRADED Third weekly advance aggregating 238.35 points (5.74%) off Trendline represents the accumulation of dai ly results 4,153.11 close in week 24 (June 13-17) Observation: shows consi stent but gradual narrowing of negative breadth since the June New all-time high (intra) set at 4,464.23, July 5 Index is now 18.5% off its year-to-date trough (intra) 3,705.18, February 28 ADL @-663 matches level of June 2 nd (PSEI 4,324.98); strong recovery from low of -926 of June 14 (PSEI @ 4,140.27; AD Ratio improves to 0.93 from 0.91; Market breadth still negative, -0.292, but the spread has narrowed from the -0.0468 (@ June 14 low) and last week's -0.0346 Average Daily Volume flat week-on-week @ 2.839 billion Average Daily Value rises 1.1% to php4.567 billion Average Daily Net Foreign remains positive, adds 20% from previous week to php158.21 million; Buy-Sell ratio rises to 1.08 Average Daily Trades expands by 1.0% to 14,687, with the 14pdMA almost flat at 14,772. The number of issues traded per session rises to 173 from 171 last week; Value per trade increases by 25% to php173.48k from php130.26k
1 .60 1 .50 1 .40 1 .30 1 .20 1 .10 1 .00 0 .90 0 .80 0 .70 0 .60

THE numbers above show an undeniable picture of a market that has recovered off the year's worst conditions and has, over the last two-to-three weeks, re-discovered optimism. All internal measures posted improvements accompanying, and ergo, validating the index' surge to an all-time high. We had anticipated the correction as the impact of the positive developments, primarily in the European debt crisis, were fully discounted and fresh concerns arise. Moving forward, the market will have to find new motivations to keep on the buy-side of trades, or hold positions rather than locking in profits immediately. The industrial, property and mining & oil sectors outperformed the PSEI's 0.9% and the All Share Index' 1.19% weekly advance, posting gains of 2.97%, 1.65% and 1.59%, respectively. A score of companies led the advance, registering higher returns than their respective sectoral measures. Financial and Holding Firms advanced at an even 0.6% pace while Service counters rose 0.8% from the previous week's level. San Miguel Corporation topped the industrial group, adding 11.2% to php130 per share. Over the last two weeks, the Company has been active on the corporate front, inaugurating the Caticlan Airport at the end of June and revealing a $300 million-expansion plan for the facility to include a hotel and convention center. It has likewise expressed interest in bidding for new airport contracts in Bohol, the CARAGA region, northeast Mindanao and Puerto Princesa City, Palawan that the government is reportedly bidding out soon. The Company is also planning to list the shares of its power and energy holding unit, San
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.

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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)

WEEKLY OUTLOOK_ XXVIII_July 11 to 15_TD 133-137

2 of 2 Miguel Global Power Holdings, Inc. (SMC Global) within the year. Anticipations of Q2 earnings from its operating unit, Petron Corporation [pse: PCOR] and its equity share in the earnings of Manila Electric Company [pse: MER] may have also contributed to the significant positive price action. Stock remains a BUY with an initial price target at php150.00. The rise in the property sector, on the other hand, was led by the three Andrew Tan Group units: newly-acquired Global Estate Resorts, Inc. [pse: GERI, php2.33, +11.5%], Megaworld Corporation [pse: MEG, php2.10, +2.44%] and Empire East Land, Inc. [pse: ELI, php0.76, +4.1%.] Late last month, the Company (GERI) disclosed that, together with other AGI subsidiaries, it has allotted php20 billion for two major tourismrelated projects Boracay Newcoast and Twin Lakes (in Metro Tagaytay). The first is estimated to account for three-fourths of the aforementioned allotment. The nearly 20% price appreciation for the month-to-date alone makes the stock a strong candidate for a profittaking induced correction. Particularly as both STO(14,3,3) and RSI(14) trades at above the overbought lines of 80- and 70-, respectively. Adding to this apprehension is the approach of its nearly 15-year historical high of php2.46 (inclusive of years as LND or prior to AGI's acquisition) and the strong selling pressures that has welcomed the stock at current levels. Book profits, with a possible buy-back proposition for a long-term hold @ php2.18-2.24 range. MOVING FORWARD. The slide in US equities Friday, weighed down by a worse-than-expected unemployment numbers, could temper optimism at the market enters week 28. This could provide the fodder or the excuse for investors to book profits as trades open on Monday. Nevertheless, the overall view on the domestic economy has remained favorable to neutral. The slight increase of consumer prices for June, which nonetheless keeps the year-to-date figure within the full-year target band, have increased bets the BSP may leave rates yet unchanged for a second straight meeting. And although world crude oil prices have seemingly resumed a northern bias, the sustained strength of the domestic currency, alongside those in emerging economies, presents an offsetting force that may, in the end, tame inflationary pressures. We keep our full year index target of 4,600-4,800 (not 3,600-3,800 as erroneously typed in a previous daily report.) Over the near-term, however, the index will remain challenged to find new impetus to keep trading above the 4,400 mark. Q2 earnings may just be the fodder to feed the fire. (jc)

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.