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GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
MARKET NOTES_Week 19_TD91_May 11, 2011_Wednesday
source: www.pse.com.ph
DIVIDENDS:
EARNINGS:
URC share price has met strong resistance at the php38.30-38.40 and the php39.00 levels. The underlying technical measures fail to
give a definitive signal either way, with prospects of a relatively flat, range bound movement up ahead. HOLD.
PRESS RELEASES:
itsDISCLAIMER: 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 CO MPLETE 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 3
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
MARKET NOTES_Week 19_TD91_May 11, 2011_Wednesday
source: www.pse.com.ph
investment of US$1.5 million by SMM in CEXCI, equivalent to a 25% equity. There is also an option for SMM to increase
its position in CEXCI to 40%, if and when the initial funds have been fully utilized. The amount raised will be used to fund
exploration works on CEXCI's gold and copper properties in the Central Cordillera and North Luzon regions, including the Manmanok
property in Apayao.
SMM holds an 18.19% stake in NIKL (as of end-March 31, 2011) and is the majority shareholder in Coral Bay, the country's first hydro-
metallurgical nickel processing plant as well as in Taganito HPAL Nickel Corp., a second processing plant currently under construction.
NIKL is the country's largest nickel ore producer and the CEXCI project represents it diversification into other metals and minerals,
particularly gold and copper.
For the first quarter of 2011, the Company saw the estimated value of its nickel ore shipments nearly doubled to php1.97 billion from
php996 million in the comparative quarter a year ago. Volume of nickel ore shipped by wet metric tons increased 8% to 1.4 million in
the January to March period. These were sourced primarily from the Rio Tuba and Taganito mines. Shipments from the two other sites,
Hinatuan and Cagdianao, will commence this month. The estimated realized price applicable to 1.0 mWMT in Q1 2011 was higher at
$11.61 per pound versus the $8.64 per pound last year. The 34.38% increase in the dollar price was tempered, however by the 4.8%
appreciation of the average peso-dollar translation over the
comparative quarters. (In peso terms, based on comparative
year-on-year average exchange rates, the applicable amounts
rose to php508.48 per pound from php397.68, or +27.86%.
NIKL share price has trended higher in the last three sessions,
bouncing off a major support line represented by the 150pdEMA
at php21.0686. At yesterday's trades, it briefly pierced, but failed
to sustain the break, above the 10pdEMA at php22.2464, closing
at php22.20. The stock continues to hold modest strength
(RSI[14] @ 53-55) coupled with an almost neutral, albeit biased
towards a slow accumulation, Acc-Dist Line. STO(14,3,3) has
narrowed the negative gap with a potential upside break of the
trigger line moving forward. The MACD, however, is still
negatively slanted at a very minimal slope. Finally, although
trading pace, as indicated by volume turnover, has picked up in
the three sessions, it remains less than 1.0 million shares, thus
depriving the stock of a solid support to sustain a northern trek.
Immediate support and resistance bands are at php20.50-21.20
and php22.80-23.60, respectively. This provides a potential
maximum margin of between 7.5% and 15%. Medium-term action
possible. ACCUMULATE
CORPORATE DEVELOPMENTS:
itsDISCLAIMER: 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 CO MPLETE 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 3
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
MARKET NOTES_Week 19_TD91_May 11, 2011_Wednesday
source: www.pse.com.ph
stream, warning of a possible short-lived run to take advantage of the news/disclosure. The proposition is risky, although such risks are
limited, from a techinical standpoint with price managing to keep to a narrow band. TRADING BUY
further reference:
http://www.ottoenergy.com/IRM/Company/ShowPage.aspx?CPID=1579&EID=69840217&PageName=Farmin%20Option%20Exercised%20in%20Service%20Contract%2055
itsDISCLAIMER: 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 CO MPLETE 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 3