ACCORD CAPITAL EQUITIES CORPORATION

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

MARKET NOTES
TD 142_July 22, 2011_FRI

Company Updates
covered issues:
AYALA CORPORATION [pse: AC] Disc. No. 5443 s. 2011 FULL REDEMPTION OF PREFERRED B SHARES The Company has redeemed all outstanding 58 million Series B Preferred Shares [pse: ACPR] which were issued in July 21, 2006. While the redeemed shares will now revert to the Treasury and may later be re-issued, there are no immediate plans for such re-issuance. In another disclosure, the Company confirms reports that the Court of Appeals has issued a 60-day TRO on its venture with the Negros Occidental Provincial Government for the development of the 7.7 hectare provincial capitol grounds. The petition for injunction was filed by listed firm SM Prime Holdings Corporation [pse: SMPH] who claims to have won the July 7 bidding for the said project. METRO PACIFIC INVESTMENTS CORPORATION [pse: MPI] Disc. No. 5460 s. 2011 CLARIFICATION ON REPORTED PROFIT PROJECTION FOR 2011 TRAILING PE 24.14 The company confirms statements attributed to MVP that it is expecting 2011 to post ROE 5.44 modest double-digit increase compared to 2010 levels. Over the first six months last year, DIVIDEND YIELD (TTM) 0.69 MPI earned php1.93 billion, representing a 169% rise from the same period 2009. It likewise 52-WEEK RETURN % 41.47% confirms that it remains interested in BCDA projects, including the elevated monorail BETA vs PSEI 1.265 system, the construction of a second terminal in Clark and in operating NAIA. It will also reiterate its original comprehensive proposal for MRT 3, inclusive of capacity expansion, operation and maintenance, rehabilitation and integration into and with LRT 1. The above earnings guidance may provide a positive spin to the share price. At the end of Q1, annualized per share earnings already reaches php0.164, or 15.5% higher than the year-end 2010 level. At this pace, we can say that the stock at php3.60-3.77 is fairly priced. Ergo, the Company will have to post at least a 20% bottomline growth to fundamentally support a market price of php4.00, at least. Note that the computations are based on trailing earnings applied to current year price range. From a technical standpoint, the stock suggests a consolidation with a growing positive momentum, and bias. Strong support is seen at .the php3.50-3.55 range (the ideal entry-level). The tight trading band has capped price at the php3.60-3.65 band and a break puts the initial target at php3.90-3.95, or an upside of just under 10% over the short-term. Ceteris paribus, earnings growth may hit the 10%-15% range, which may keep short-term price movements tight. However, the gradual rise in RSI(14), STO(14,3,3) and MACD(12,26,9) shows a build-up of positive momentum. Developments on the key infrastructure projects lined-up, or which the Company is training its sights on, will invariably raise interest in the counter as earnings growth may push past the 20% mark, with EPS possibly returning to the 2009 level of php0.193. Last year's PE range was 11.4x to 23x using prior year EPS. Using current EPS, the range of multiples rises to 15.5x to 31.3x. MEDIUM-TERM BUY (near-term PT @ php3.903.95, medium-to-long term PT @ >php4.50.

dividend updates: PHILIPPINE SEVEN CORPORATION [pse: SEVN] Disc. No. 5448 s. 2011 STOCK DIVIDEND Dividend Amount : 15% Ex-Dividend Date : 16 August 2011 Record Date : 19 August 2011 Payment Date : 13 September 2011

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