ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (+632)687-5071 (trunk)
DAILY WRAP & OUTLOOK _ TD94-95_May 16-17, 2011
PSEI Pts Change % Change Volume Value Advancers Decliners Unchanged

4,300.81 8.70 0.20% 8,803.60 3,752.93 55 76 44

MARKET WRAP & HIGHLIGHTS PHILIPPINE MARKET, DAILY STATS

SECTOR INDEX Pts Change % CHANGE

T HE Philippine Stock Exchange Index was hardly changed, adding just 8.7
points or a-fifth of a percent to settle at the psychological 4,300 level,
snapping a two-session -42.93 (-0.99%) drop. Sectoral indexes were mixed
ALL
FINANCIAL
INDUSTRIAL
3,003.60
949.33
7,143.75
0.88
5.71
-0.75
0.03%
0.61%
-0.01%
with losers led by Holding Firms' -0.50%, Property's -0.39% and Industrial's HOLDING FIRMS 3,582.36 -17.97 -0.50%
marginal -0.01% declines. The broader All Shares Index mirrored the Main PROPERTY 1,572.37 -6.17 -0.39%
SERVICES 1,573.60 17.85 1.15%
composite, staying flat at 3,003.60.
MINING & OIL 17,919.05 68.90 0.39%
AS of 1210H End of Day
It was however a better day for the local market with the Asian region in the red as ASIAN MARKETS LATEST UPDATE
of noon., dragged by the Dow's weak close Friday and the sustained drop in COUNTRY INDEX LAST % CHANGE
commodity prices. Europe's debt problems continue to worry investors, as the ASIAN REGION MSCI APEX 50 894.81 -1.47%
finance ministers of the region meet later today with Greece on top of the agenda. JAPAN TOPIX 831.30 -1.03%
IMF chief Strauss-Kahn will miss the meeting after he was arrested and held for JAPAN NIKKEI 225 9,573.20 -0.78%
arraignment in a sex assault case in New York. CHINA HANGSENG 23,020.60 -1.10%
CHINA SHANGHAI 2,863.02 -0.28%
Fifty-five stocks advanced against the 76 that fell , keeping the slight negative bias TAIWAN TAIEX 8,935.38 -0.79%
in the market breadth valid. Volume expanded to 8.8 billion, as trading in Philodrill SOUTH KOREA KOSPI 2,106.65 -0.63%
AUSTRALIA S&P/ASX 200 4,653.00 -1.24%
Corporation spiked after it disclosed that Peak Oil and Gas Phils. Ltd (AUS), Blade
AUSTRALIA ALLORINDARIES 4,728.20 -1.23%
Petroleum Phils., Ltd. (AUS) and VenturOil Phils. Inc. (PH) have exercised their
NEW ZEALAND NZ50 3,539.50 0.11%
option to acquire 70% in SC 6, Block B where TA holds as 14.063% participating THAILAND SET 1,084.96 -0.12%
interest. OV share price jumped 21.42% % to php0.017, with total volume INDONESIA JKSE 3,806.48 -0.67%
accounting for nearly half of the market's aggregate. Sustained interest in other INDIA BSESN 18,399.90 -0.71%
miners Lepanto (LC/LCB), Manila Mining Corporation (MA/MAB) and Philex Mining SINGAPORE Straits Times 3,136.95 -0.84%
Corporation assured the sector's dominance in terms of volume turnover. MALAYSIA KLSE 1,541.62 0.06%
VIETNAM HO CHI MINH 474.65 -1.05%
The surfacing a new source of uncertainty threatens to prick confidence in the www.bloomberg.com As of 1205H 5/16/11

economy in general and equities in particular. Today, the US government is

expected to hit its debt ceiling of US$14.29 trillion with Congress still at logger-heads on proposals to raise the limit. Although the US can continue to
keep borrowing until August 2nd, Treasury Secretary Timothy Giethner magnified the growing concerns dubbing the impact of Congress' failure to act on
the matter affirmatively as “catastrophic.”

Preliminary OUTLOOK for TD95_May 17, 2011

Early futures indications are not encouraging. US and European stock futures are all in the red, reflecting the worries mentioned earlier. Absent major
market moving data in the US, focus will veer towards the “budget politics.” The technical “weakness” we have observed continues to develop, with
momentum measures suggesting ensuing rallies as possible “sell” opportunities. On the other hand, the positive earnings of most firms that have
reported their Q1 numbers have had minimal share price impact. Investors are more inclined to exploit fresh corporate news and developments rather
than discounting current earnings as proof of future prospects.

Compared to other markets in the Southeast Asian regions, the Philippine market's risk-return profile suggests a slant towards risk aversion. Average
returns (12month period) for Philippine Stocks are almost flat (@ 2.47%) with volatility risk rising to 6.45 from 2.73 as of June last year. The trends in
neighboring markets show flat or rising average monthy returns with declining volatility risk.

Having said these, the local market will be hard pressed for more motivation to push the index past and sustain levels above 4,300. Major support and
resistance levels are defined at 4,250-70 and 4,330, respectively.

, 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.
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