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GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week XXIII_June 6 to 10_TD 109-113
1 of 2
SECB's Q1 2011 FS shows total resources growing 10.24% from end-2010 levels and 27.8% year-on-year to php183.54
billion. The treasury/investment and corporate banking segments contributed the most to asset growth at 45.45% and
32.30%, respectively. Consumer banking assets added 7.06% to the total. Quarterly profits were php80M more than the
same period last year. The combined increases in the earnings of the corporate, consumer and other operating &
reporting segments managed to offset the -php252m drop in income from treasury operations.
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.
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week XXIII_June 6 to 10_TD 109-113
2 of 2
MARKET'S CONDITION:
6/3/2011
Based on 19 global markets' TTM PE multiples as an
indicator of relative valuation, Philippine equities are NZ50
KOSPI
collectively just above the median and average of 14,27x JCI
and 14.57x, respectively. Thus local shares are neither NIKKEI
FTSE100
Nevertheless, at 15.15x, domestic stocks are at historical SET
averages, and substantially below the 2007 bull peak PE DOW
of between 17x and 21x. DAX50
HANGSENG
BOVESPA
earnings, while the broader S&P 500 is at a marginally HCM
higher multiple of 14.80x. European markets are all - 5.00 10.00 15.00 20.00 25.00
below the Philippine's 15x.
On the technical front, the weekly charts show a slight narrowing of the trading band over the last six (6) weeks. This
results from support managing to hold steady at the 4,170-line while the tops have been dropping marginally from
4,344.10 (week-ending April 29) to last week's 4,332.60.
Nevertheless, value turnover in those weeks have been
rising, at almost a similarly slow pace, from php25.107
billion to php25.997 billion last week. While this reading
doesn't lend us much predictive value, incorporating the
ADL over the same period puts a negative bias – deviating
from the suggestions of both the short-term and long-term
EMA's. Over the six (6) week span, the market's breadth
remains negative, dropping to a nominal value of -677 at
the end of last week from -454 at the end of April. This
supposes the market to be losing some ground, raising the
prospects of a sharp pull-back on the slightest negative
news.
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.